# PSR Article 3 — Definitions

Textual state: amended_substantial. 1114 words changed

- Current text: Council final compromise text (Council document 8221/26) — not yet law.
- Compared against: COM(2023) 367 final — superseded.
- Classification is mechanical; method: https://paymentslaw.eu/method/
- Editorial review state: not_assessed. Markers are curated and selective, not a complete assessment.

Word-level diff, proposal → compromise: `{+text+}` was inserted, `[-text-]` was deleted.

## Paragraph 0

For the purposes of this Regulation, the following definitions apply: (1) ‘home Member State’ means [-either of the following: (a) the -]{+home +}Member State {+as defined +}in [-which the payment service provider has its registered office; or (b) if the payment service provider has, under its national law, no registered office, the Member State in which the payment service provider has its head office; -]{+Article 2, point (1), of Directive XXX [PSD3]; +}(2) ‘host Member State’ means [-the -]{+host +}Member State [-other than the home Member State -]{+as defined +}in [-which a payment service provider has an agent, a distributor or a branch or provides payment services; -]{+Article 2, point (2), of Directive XXX [PSD3]; +}(3) ‘payment service’ means any business activity set out in Annex [-I; -]{+I of Directive XXX [PSD3]; +}(4) ‘payment institution’ means a [-legal person that has been granted authorisation -]{+payment institution as defined +}in [-accordance with -]Article [-13 -]{+2, point (4), +}of Directive [-(EU) [PSD3] to provide payment services or electronic money services throughout the Union; -]{+XXX [PSD3]; +}(5) ‘payment transaction’ means an act of placing, transferring or withdrawing funds, based on a payment order placed by the payer, or on his behalf, or by the payee, or on his behalf, irrespective of any underlying obligations between the payer and the payee; (6) ‘initiation of a payment transaction’ means the steps necessary to prepare the execution of a payment transaction, including the placement of a payment order and the completion of the authentication process; (7) ‘remote initiation of a payment transaction’ means a payment transaction for which a payment order is placed via the internet; (8) ‘execution of a payment transaction’ means [-the process starting once the initiation -]{+execution +}of a payment transaction [-is completed and ending once the funds placed, withdrawn, or transferred are available to the payee; -]{+as defined in Article 2, point (6) of [PSD3]; +}(9) ‘payment system’ means a funds transfer system with formal and standardised arrangements and common rules for the processing, clearing or settlement of payment transactions; (10) ‘payment system operator’ means the legal entity legally responsible for operating a payment system; (11) ‘payer’ means a natural or legal person who holds a payment account and places {+or allows +}a payment order from that payment account, or, where there is no payment account, a {+natural or legal +}person who places a payment order; (12) ‘payee’ means a natural or legal person who is the intended recipient of funds which are the subject of a payment transaction; (13) ‘payment service user’ means a natural or legal person making use of a payment service or of an electronic money service in the capacity of payer, payee, or both; (14) ‘payment service provider’ means a body as referred to in Article 2(1) or a natural or legal person benefiting from an exemption pursuant to Articles 34, 36 and 38 of Directive (EU) [PSD3]; (15) ‘payment account’ means an account held by a payment service provider in the name of one or more payment service users which [-is -]{+can be +}used for the execution of one or more payment transactions and allows for sending and receiving funds to and from third parties; (16) ‘payment order’ means an instruction by a payer or payee to its payment service provider requesting the execution of a payment transaction; (17) ‘mandate’ means the expression of authorisation given by the payer to the payee and (directly or indirectly via the payee) to the payer’s payment service provider allowing the payee to initiate a payment transaction for debiting the payer’s specified payment account and to allow the payer’s payment service provider to comply with such instructions; (18) ‘payment instrument’ means an individualised device or devices and/or set of procedures agreed between the payment service user and the payment service provider which enables the initiation of a payment transaction; (19) ‘account servicing payment service provider’ means a payment service provider providing and maintaining a payment account for a [-payer; -]{+payment service user; +}(20) ‘payment initiation service’ means a service to place a payment order at the request of the [-payer or of the payee -]{+payment service user +}with respect to a payment account held at another payment service provider; (21) ‘account information service’ means an online service [-of collecting, either directly or through -]{+where +}a [-technical service -]provider, [-and consolidating information held on -]{+accesses +}one or [-more -]{+several +}payment accounts [-of a -]{+held by the +}payment service user with one or several account servicing payment service [-providers; -]{+providers that are accessible online in order to provide a service of aggregation or consolidation of payment account data to the payment service user or to transmit the data to another entity that will provide that service to the payment service user; +}(22) ‘payment initiation service provider’ means a payment service provider providing payment initiation services; (23) ‘account information service provider’ means a payment service provider providing account information services; (24) ‘consumer’ means a natural person who, in payment service contracts covered by this Regulation, is acting for purposes other than his or her trade, business or profession; (25) ‘framework contract’ means a payment service contract which governs the future execution of individual and successive payment transactions and which may contain the obligation and conditions for setting up a payment account; (26) ‘money remittance’ means [-a payment service where funds are received from a payer, without any payment accounts being created -]{+money remittance as defined +}in [-the name -]{+Article 2(22) +}of [-the payer or the payee, for the sole purpose of transferring a corresponding amount to a payee or to another payment service provider acting on behalf of the payee, or where such funds are received on behalf of and made available to the payee; -]{+PSD3; +}(27) ‘direct debit’ means a payment service for debiting a payer’s payment account, where a payment transaction is initiated by the payee on the basis of a mandate given by the payer to the payee, to the payee’s payment service provider or to the payer’s own payment service provider; (28) ‘credit transfer’ means a payment service, including instant credit transfers, for crediting a payee’s payment account with a payment transaction or a series of payment transactions from a payer’s payment account by the payment service provider which holds the payer’s payment account, based on an instruction given by the payer; (29) ‘instant credit transfer’ means a credit transfer which is [-immediately executed, regardless of the -]{+executed immediately, 24 hours a +}day [-or hour; -]{+and on any calendar day; +}(30) ‘funds’ means central bank money issued for retail use, scriptural money and electronic [-money; -]{+money, including electronic money tokens; +}(31) ‘value date’ means a reference time used by a payment service provider for the calculation of interest on the funds debited from or credited to a payment account; (32) ‘reference exchange rate’ means the exchange rate which is used as the basis to calculate any currency conversion cost and which is disclosed by the payment service provider or comes from a publicly available source; (33) ‘reference interest rate’ means the interest rate which is used as the basis for calculating any interest to be applied and which comes from a publicly available source which can be verified by both parties to a payment service contract; (34) ‘authentication’ means a procedure which allows the payment service provider to verify the identity of a payment service user or the validity of the use of a specific payment instrument, including the use of the user’s personalised security credentials; (35) ‘strong customer authentication’ means an authentication which is based on the use of two or more elements categorised as knowledge (something only the user knows), possession (something only the user possesses) and inherence (something the user is) that are independent, in that the breach of one does not compromise the reliability of the others, and is designed in such a way as to protect the confidentiality of the authentication data; (36) ‘technical service provider’ means a provider of services [-which -]{+which, although not being payment services, +}support the provision of payment services, without entering at any time into possession of the funds to be transferred; (37) ‘personalised security credentials’ means personalised features provided by the payment service provider to a payment service user for the purposes of authentication; (38) ‘sensitive payment data’ means data which can be used to carry out fraud, including personalised security credentials; (39) ‘unique identifier’ means a combination of letters, numbers or symbols specified by the payment service provider to the payment service user and to be provided by the payment service user to identify unambiguously another payment service user or the payment account of that other payment service user for a payment transaction; (40) ‘means of distance communication’ means a method which, without the simultaneous physical presence of the payment service provider and the payment service user, may be used for the conclusion of a payment services contract; (41) ‘durable medium’ means any instrument which enables the payment service user to store information addressed personally to that payment service user in a way accessible for future reference for a period of time adequate to the purposes of the information and which allows the unchanged reproduction of the information stored; (42) ‘microenterprise’ means an enterprise which at the time of conclusion of the payment service contract is an enterprise as defined in Article 1 and Article 2(1) and (3) of the Annex to Recommendation 2003/361/EC; (43) ‘business day’ means a day on which the payment service provider of the payer or of the payee involved in the execution of a payment transaction is open for business to execute a payment [-transaction; -]{+transaction other than instant credit transfers; +}(44) ‘agent’ means [-a natural or legal person who acts on behalf of a payment institution -]{+an agent as defined +}in [-providing payment services, with the exclusion -]{+Article 2, point (28), +}of [-electronic money services; -]{+Directive XXX [PSD3]; +}(45) ‘branch’ means a [-place of business other than the head office which is a part of a payment institution, which has no legal personality and which carries out directly some or all of the transactions inherent -]{+branch as defined +}in [-the business -]{+Article 2, point (29), +}of [-a payment institution; all of the places of business set up in the same Member State by a payment institution with a head office in another Member State shall be regarded as a single branch; [63][64] -]{+Directive XXX [PSD3]; +}(46) ‘group’ means a group [-of undertakings that are linked to each other by a relationship -]as [-referred to -]{+defined +}in Article [-22(1), points (2) or (7) -]{+2, point (30), +}of Directive [-2013/34/EU of the European Parliament and of the Council or undertakings as referred to in Articles 4, 5, 6 and 7 of Commission Delegated Regulation (EU) No 241/2014, which are linked to each other by a relationship as referred to in Article 10(1) or Article 113(6), first subparagraph, or 113(7), first subparagraph of Regulation (EU) No 575/2013; -]{+XXX [PSD3]; +}(47) ‘digital content’ means goods or services which are produced and supplied in digital form, the use or consumption of which is restricted to a technical device and which do not include in any way the use or consumption of physical goods or services; (48) ‘acquiring of payment transactions’ means a payment service provided by a payment service provider contracting with a payee to accept and process payment transactions, which results in a transfer of funds to the payee; (49) ‘issuing of payment instruments’ means a payment service by a payment service provider contracting to provide a payer with a payment instrument to initiate and process the payer’s payment transactions; (50) ‘electronic money’ means electronically, including magnetically, stored monetary value [-as represented by a claim on the issuer -]which is issued on the receipt of funds for the purpose of making payment transactions and which is accepted by other natural or legal persons than the issuer; [-(51) ‘distributor’ means a natural or legal person that distributes or redeems electronic money on behalf of a payment institution; (52) ‘electronic money services’ means the issuance of electronic money, the maintenance of payment accounts storing electronic money units, and the transfer of electronic money units; -](53) ‘commercial trade name’ means the name which is commonly used by the payee {+in the trade and marketing of its business +}to identify itself to the payer; (54) ‘ATM deployer’ means [-operators -]{+an ATM deployer as defined in Article 2, point (38), +}of [-automated teller machines who -]{+Directive XXX [PSD3]; (56) ‘merchant-initiated transaction (MIT)’ means a payment transaction where the payer has given a mandate authorising the payee to place a payment order for a payment transaction or a series of payment transactions through a particular payment instrument that is issued to be used by the payer to place payment orders for the payment transactions, where the mandate is based on an agreement between the payer and the payee for the provision of products or services, and where those transactions +}do not [-service payment accounts. (55) ‘payment institution providing electronic money services’ -]{+need to be preceded by a specific action of the payer to trigger their initiation by the payee; (57) ‘mail order or telephone order transaction (MOTO)’ +}means a payment [-institution -]{+transaction for +}which [-provides -]{+payment orders are placed by +}the [-services -]{+payer with modalities other than the use +}of [-issuance of -]electronic [-money, maintenance of -]{+platforms or devices, such as paper-based +}payment [-accounts storing electronic money units, and transfer -]{+orders, mail orders or telephone orders, irrespective +}of [-electronic money units, -]whether or not [-it also provides -]{+the execution of the transaction is performed electronically; (58) ‘aggregated mid-market exchange rate’ means a rate that represents the mid-point between the buy and sell prices of a currency pair in the foreign exchange market, and that is calculated by combining data from multiple sources to provide an accurate and real-time reflection of the market conditions; (59) ‘periodic penalty payments’ means periodic pecuniary enforcement measures, aimed at ending ongoing breaches of this Regulation or breaches of +}any {+decisions issued by a competent authority on the basis +}of {+this Regulation and compelling +}the {+natural or legal person to return to compliance with the infringed provisions or decisions; (60) ‘electronic money token’ means an electronic money token as defined in Article 3(1), point (7), of Regulation (EU) 2023/1114; (61) ‘crypto-asset service’ means a crypto-asset service as defined in Article 3(1), point (16), of Regulation (EU) 2023/1114; (62) ‘providing transfer +}services [-referred -]{+for crypto-assets on behalf of clients’ means providing transfer services for crypto-assets on behalf of clients as defined in Article 3(1), point (26), of Regulation (EU) 2023/1114; (63) ‘crypto-asset service provider’ means a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114; (64) ‘self-hosted address’ means a self-hosted address as defined in Article 3, point (20), of Regulation (EU) 2023/1113; (65) ‘custodial wallet’ means a crypto-asset wallet address where a crypto-asset service provider ensures the safekeeping or controlling, on behalf of its client, of crypto-assets or of the means of access +}to {+such crypto-assets, where applicable +}in [-Annex I. -]{+the form of private cryptographic keys; (66) ‘payment card scheme’ means a payment card scheme as defined in Article 2, point (16), of Regulation (EU) No 2015/751; (67) ‘processing’ means processing as defined in Article 2, point (27), of Regulation (EU) No 2015/751; (68) ‘processing entity’ means a processing entity as defined in Article 2, point (28), of Regulation No (EU) 2015/751.+}