# PSR Article 65 — Refusal to execute a payment order Textual state: amended_substantial. 779 words changed; 1 paragraph removed - 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 - Compared against: COM(2023) 367 final — superseded.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. ## New paragraph -1 {+-1. Where all of the conditions set out in the payer’s framework contract are met, the payer’s payment service provider shall not refuse to execute an authorised payment transaction, irrespective of whether the payment order is placed by a payer, including through a payment initiation service provider, or by or through a payee, unless relevant Union or national law provides otherwise.+} ## New paragraph -1a {+-1a. By way of derogation from paragraph -1 and without prejudice to Regulation (EU) 2024/1624, the payer’s payment service provider shall refuse to execute a payment transaction if the conditions set out in this Article are fulfilled. Notwithstanding Article 5c(5) of Regulation (EU) No 260/2012 and Articles 50 and 69(1) of this Regulation, where, based on the transaction monitoring referred to in Article 83 of this Regulation or on any other relevant information available to the payment service provider, but not solely on the basis of the outcome of the service ensuring the verification of payee, the payer’s payment service provider has objectively justified reasons to suspect that the transaction is fraudulent, the payer’s payment service provider shall suspend the execution of a payment transaction. Where the payer’s payment service provider has objectively justified reasons to suspect that the transaction is fraudulent and does not suspend that transaction in accordance with the first subparagraph, the payer shall not bear any financial losses, except if the payer has acted fraudulently. The burden of proof that there was no breach of this Article shall be on the payment service provider. Without undue delay from the suspension of the transaction, unless prohibited by other relevant Union or national law, the payment service provider shall notify the payer, in an agreed manner, of any information or action needed from the payer to enable the payment service provider to assess, whether the reasons for such suspension are still justified. The notification shall give the payer sufficient information to enable the payer to understand the risks that the payment service provider has identified. Within the timelines specified in Article 69(1), the payment service provider shall make all reasonable efforts to contact the payer, and shall ensure that appropriate means are available at all times to enable the payer to contact the payment service provider where additional information is requested by the payment service provider to assess whether there are objectively justified reasons to suspect fraud. On the basis of that assessment, the payer's payment service provider shall decide whether or not to execute the payment order and, where applicable, restore the debited payment account to the state in which it would have been had the payment order not been submitted. The obligation to notify the payer under the fifth subparagraph shall not apply in the case of instant credit transfers. In such cases or where it has not been possible for the payer’s payment service provider to receive information from the payer within the timelines specified in Article 69(1), the payment service provider shall assess, based on the transaction monitoring referred to in paragraph -1, and on any other relevant information available to the payment service provider, but not solely on the basis of the outcome of the service ensuring the verification of payee, whether or not to execute the payment order. For the purpose of this Regulation, the fact that a payment order is unusual shall not by itself constitute objectively justified reasons to suspect fraud.+} ## Paragraph 1 1. [-Where -]{+Where, on +}the {+basis of the assessment in paragraph -1a, the +}payment service provider refuses to execute a payment order or to initiate a payment transaction, the {+payer’s +}payment service provider shall notify {+to +}the [-refusal -]{+payer and the payee's payment service provider +}and, [-if possible, -]{+where applicable, make available to +}the {+payment initiation service provider, the refusal, the specific +}reasons for that refusal [-and -]{+and, where applicable, +}the procedure for correcting [-any factual mistakes that led to -]the [-refusal -]{+decision +}to {+refuse to execute +}the [-payment service user, -]{+transaction, +}unless {+such notification is +}prohibited [-by other -]{+under +}relevant Union or national law. The {+payer's +}payment service provider shall [-provide or -]make [-available -]the notification in an agreed [-manner at -]{+manner, and where applicable shall make +}the [-earliest opportunity, -]{+information available to the payment initiation service provider, without undue delay, +}and in any case within the periods specified in Article 69. {+In the case of instant credit transfers, the payer’s payment service provider shall provide the notification, and where applicable shall make the information available to the payment initiation service provider, within 10 seconds of the time of receipt of the payment order by the payer's payment service provider. +}The framework contract may include a condition that the payment service provider may charge a reasonable fee for such a refusal if the refusal is objectively [-justified. -]{+justified, but not in the case of a refusal due to a suspected fraudulent transaction.+} ## Paragraph 2 (removed) [-2. Where all of the conditions set out in the payer’s framework contract are met, the payer’s account servicing payment service provider shall not refuse to execute an authorised payment transaction irrespective of whether the payment order is placed by a payer, including through a payment initiation service provider, or by or through a payee, unless prohibited by other relevant Union or national law.-] ## Paragraph 3 3. For the purposes of Articles 69 and 75 a payment order whose execution has been refused shall be deemed not to have been received.