Regulation (EU) No 260/2012 of the European Parliament and of the CouncilShow full title

Article 1 U.K. Subject matter and scope

1. This Regulation lays down rules for credit transfer and direct debit transactions denominated in euro [F1 within the qualifying area, where—

(a) the payer's payment service provider and the payee's payment service provider are both located in the United Kingdom,

(b) either of those payment service providers is located in the United Kingdom and the other is located in another qualifying State, or

(c) the sole payment service provider (PSP) involved in the payment transaction is located in the United Kingdom.]

2. This Regulation does not apply to the following:

(a) payment transactions carried out between and within PSPs, including their agents or branches, for their own account;

(b) payment transactions processed and settled through large-value payment systems, excluding direct debit payment transactions which the payer has not explicitly requested be routed via a large-value payment system;

(c) payment transactions through a payment card or similar device, including cash withdrawals, unless the payment card or similar device is used only to generate the information required to directly make a credit transfer or direct debit to and from a payment account identified by BBAN or IBAN;

(d) payment transactions by means of any telecommunication, digital or IT device, if such payment transactions do not result in a credit transfer or direct debit to and from a payment account identified by BBAN or IBAN;

(e) transactions of money remittance as defined in point (13) of Article 4 of Directive 2007/64/EC;

(f) payment transactions transferring electronic money as defined in point (2) of Article 2 of Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions(1), unless such transactions result in a credit transfer or direct debit to and from a payment account identified by BBAN or IBAN.

3. Where payment schemes are based on payment transactions by credit transfers or direct debits but have additional optional features or services, this Regulation applies only to the underlying credit transfers or direct debits.

Textual Amendments

F1 Art. 1(1)(a)-(c) and words substituted for words in Art. 1(1) (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 5 (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Article 2 U.K. Definitions

For the purposes of this Regulation, the following definitions apply:

(A1)

[F2 “the qualifying area” means the territory of the qualifying States;

(A2)

“qualifying State” means each of the following—

(a)

the EEA states,

(b)

the United Kingdom; and

(c)

Gibraltar;]

(1)

‘credit transfer’ means a national or cross-border payment service 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 PSP which holds the payer’s payment account, based on an instruction given by the payer;

(2)

‘direct debit’ means a national or cross-border payment service for debiting a payer’s payment account, where a payment transaction is initiated by the payee on the basis of the payer’s consent;

(3)

‘payer’ means a natural or legal person who holds a payment account and allows a payment order from that payment account or, where there is no payer’s payment account, a natural or legal person who makes a payment order to a payee’s payment account;

(4)

‘payee’ means a natural or legal person who holds a payment account and who is the intended recipient of funds which have been the subject of a payment transaction;

(5)

‘payment account’ means an account held in the name of one or more payment service users which is used for the execution of payment transactions;

(6)

‘payment system’ means a funds transfer system with formal and standardised arrangements and common rules for the processing, clearing or settlement of payment transactions;

(7)

‘payment scheme’ means a single set of rules, practices, standards and/or implementation guidelines agreed between PSPs for the execution of payment transactions across the [F3 qualifying area and within the United Kingdom], and which is separated from any infrastructure or payment system that supports its operation;

(8)

F4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8A)

[F5 UK-regulated PSP” means a payment service provider as defined by regulation 2(1) of the Payment Services Regulations 2017;

(8B)

“PSP” means—

(a)

a UK-regulated PSP, or

(b)

a PSP as defined by point (8), as it had effect immediately before IP completion day;]

(9)

‘PSU’ means a natural or legal person making use of a payment service in the capacity of payer or payee;

(10)

‘payment transaction’ means an act, initiated by the payer or by the payee of transferring funds between payment accounts in the [F6 qualifying area], irrespective of any underlying obligations between the payer and the payee;

(11)

‘payment order’ means an instruction by a payer or payee to his PSP requesting the execution of a payment transaction;

(12)

‘interchange fee’ means a fee paid between the payer’s PSP and the payee’s PSP for direct debit transactions;

(13)

‘MIF’ means a multilateral interchange fee which is subject to an arrangement between more than two PSPs;

(14)

‘BBAN’ means a payment account number identifier, which unambiguously identifies an individual payment account with a PSP in [F7 the United Kingdom] and which can only be used for [F8 UK] payment transactions while the same payment account is identified by IBAN for cross-border payment transactions;

(15)

‘IBAN’ means an international payment account number identifier, which unambiguously identifies an individual payment account in a [F9 qualifying] State, the elements of which are specified by the International Organisation for Standardisation (ISO);

(16)

‘BIC’ means a business identifier code that unambiguously identifies a PSP, the elements of which are specified by the ISO;

(17)

‘ISO 20022 XML standard’ means a standard for the development of electronic financial messages as defined by the ISO, encompassing the physical representation of the payment transactions in XML syntax, in accordance with business rules and implementation guidelines of [F10 schemes extending to the qualifying area] for payment transactions falling within the scope of this Regulation;

(18)

‘large-value payment system’ means a payment system the main purpose of which is to process, clear or settle single payment transactions of high priority and urgency, and primarily of large amount;

(19)

‘settlement date’ means a date on which obligations with respect to the transfer of funds are discharged between the payer’s PSP and the payee’s PSP;

(20)

‘collection’ means a part of a direct debit transaction starting from its initiation by the payee until its end through the normal debiting of the payer’s payment account;

(21)

‘mandate’ means the expression of consent and authorisation given by the payer to the payee and (directly or indirectly via the payee) to the payer’s PSP to allow the payee to initiate a collection for debiting the payer’s specified payment account and to allow the payer’s PSP to comply with such instructions;

(22)

‘retail payment system’ means a payment system the main purpose of which is to process, clear or settle credit transfers or direct debits, which are generally bundled together for transmission and are primarily of small amount and low priority, and that is not a large-value payment system;

(23)

[F11 “microenterprise” means an enterprise which, at the time of conclusion of the payment service contract, is an enterprise which employs fewer than 10 persons and whose annual turnover or annual balance sheet total (or both) does not exceed EUR 2,000,000; and for this purpose—

(a)

an enterprise is an entity engaged in an economic activity, irrespective of its legal form and includes, in particular, self-employed persons and family businesses engaged in craft or other activities, and partnerships or associations regularly engaged in an economic activity, and

(b)

the application of these ceilings to an enterprise which has a relationship with another enterprise and the data to apply to the headcount of staff and the financial amounts are to be determined in the manner described in Articles 3 to 6 of the Annex to Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises, but as if references to the ceilings in Article 2 were references to the ceilings in this definition and as if in Article 3(5) the words “or Community” were omitted;]

(24)

‘consumer’ means a natural person acting for purposes other than trade, business or profession in payment service contracts;

(25)

‘R-transaction’ means a payment transaction which cannot be properly executed by a PSP or which results in exception processing, inter alia, because of a lack of funds, revocation, a wrong amount or a wrong date, a lack of mandate or wrong or closed account;

(26)

‘cross-border payment transaction’ means a payment transaction initiated by a payer or by a payee where the payer’s PSP and the payee’s PSP are located in different [F12 qualifying] States;

(27)

[F13 “UK payment transaction” means a payment transaction initiated by a payer or by a payee, where the payer's PSP and the payee's PSP are both located in the United Kingdom, and “UK credit transfer” and “UK direct debit” have corresponding meanings;]

(28)

‘reference party’ means a natural or legal person on behalf of whom a payer makes a payment or a payee receives a payment.

Textual Amendments

F2 Art. 2(A1)(A2) inserted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 6(2) (with savings in S.I. 2019/680, reg. 11) (as amended by S.I. 2019/680, regs. 1(3), 6(a)(b)); 2020 c. 1, Sch. 5 para. 1(1)

F3 Words in Art. 2(7) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 6(3) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F4 Art. 2(8) omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 6(4) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F5 Art. 2(8A)(8B) inserted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 6(5) (with savings in S.I. 2019/680, reg. 11) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 5(a)); 2020 c. 1, Sch. 5 para. 1(1)

F6 Words in Art. 2(10) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 6(6) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F7 Words in Art. 2(14) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 6(7)(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F8 Word in Art. 2(14) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 6(7)(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F9 Word in Art. 2(15) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 6(8) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F10 Words in Art. 2(17) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 6(9) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F11 Art. 2(23) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 6(10) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F12 Word in Art. 2(26) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 6(11) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F13 Art. 2(27) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 6(12) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Article 3 U.K. Reachability

1. A payee’s [F14 UK-regulated PSP] which is reachable for a [F15 UK] credit transfer under a payment scheme shall be reachable, in accordance with the rules of a [F16 payment scheme extending to the qualifying area,] for credit transfers initiated by a payer through a PSP located in any [F17 qualifying] State.

2. A payer’s [F18 UK-regulated PSP] which is reachable for a [F19 UK] direct debit under a payment scheme shall be reachable, in accordance with the rules of a [F20 payment scheme extending to the qualifying area], for direct debits initiated by a payee through a PSP located in any [F21 qualifying] State.

3. Paragraph 2 shall apply only to direct debits which are available to consumers as payers under the payment scheme.

Textual Amendments

F14 Words in Art. 3(1) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 7(2)(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F15 Word in Art. 3(1) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 7(2)(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F16 Words in Art. 3(1) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 7(2)(c) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F17 Word in Art. 3(1) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 7(2)(d) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F18 Words in Art. 3(2) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 7(3)(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F19 Word in Art. 3(2) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 7(3)(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F20 Words in Art. 3(2) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 7(3)(c) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F21 Word in Art. 3(2) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 7(3)(d) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Article 4 U.K. Interoperability

1. Payment schemes to be used by [F22 UK-regulated PSPs] for the purposes of carrying out credit transfers and direct debits shall comply with the following conditions:

[F23 (a) their rules are the same for UK credit transfer transactions and for cross-border credit transfer transactions within the qualifying area and similarly for UK direct debit transactions and cross-border direct debit transactions within the qualifying area; and]

(b) the participants in the payment scheme represent a majority of PSPs within a majority of [F24 EEA] States, and constitute a majority of PSPs within the [F25 territory of the EEA states], taking into account only PSPs that provide credit transfers or direct debits respectively.

For the purposes of point (b) of the first subparagraph, where neither the payer nor the payee is a consumer, only [F26 EEA] States where such services are made available by PSPs and only PSPs providing such services shall be taken into account.

2. The operator or, in the absence of a formal operator, the participants of a retail payment system within the [F27 United Kingdom] shall ensure that their payment system is technically interoperable with other retail payment systems within the [F28 qualifying area] through the use of standards developed by international or European standardisation bodies. In addition, they shall not adopt business rules that restrict interoperability with other retail payment systems within the [F28 qualifying area]. [F29 Payment systems designated under the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 shall only be obliged to ensure technical interoperability with other payment systems designated either under those Regulations or under Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems].

3. The processing of credit transfers and direct debits shall not be hindered by technical obstacles.

F30 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F30 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F31 6. Paragraph 1 is to be read subject to any temporary exemption from the conditions set out in point (b) of the first subparagraph of that paragraph that may be granted under paragraph 4 of this Article as it applies in the European Union.]

Textual Amendments

F22 Words in Art. 4(1) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 8(2)(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F23 Art. 4(1)(a) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 8(2)(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F24 Word in Art. 4(1)(b) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 8(2)(c)(i) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F25 Words in Art. 4(1)(b) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 8(2)(c)(ii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F26 Word in Art. 4(1) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 8(2)(d) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F27 Words in Art. 4(2) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 8(3)(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F28 Words in Art. 4(2) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 8(3)(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F29 Words in Art. 4(2) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 8(3)(c) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F30 Art. 4(4)(5) omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 8(4) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F31 Art. 4(6) inserted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 8(5) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Article 5 U.K. Requirements for credit transfer and direct debit transactions

1. [F32 UK-regulated PSPs] shall carry out credit transfer and direct debit transactions in accordance with the following requirements:

(a) they must use the payment account identifier specified in point (1)(a) of the Annex for the identification of payment accounts regardless of the location of the PSPs concerned;

(b) they must use the message formats specified in point (1)(b) of the Annex, when transmitting payment transactions to another PSP or via a retail payment system;

(c) they must ensure that PSUs use the payment account identifier specified in point (1)(a) of the Annex for the identification of payment accounts, whether the payer’s PSP and the payee’s PSP or the sole PSP in the payment transaction are located in [F33 the United Kingdom, or in the United Kingdom and another qualifying State];

(d) they must ensure that where a PSU that is not a consumer or a microenterprise, initiates or receives individual credit transfers or individual direct debits which are not transmitted individually, but are bundled together for transmission, the message formats specified in point (1)(b) of the Annex are used.

Without prejudice to point (b) of the first subparagraph, [F34 UK-regulated PSPs] shall, upon the specific request of a PSU, use the message formats specified in point (1)(b) of the Annex in relation to that PSU.

2. [F35 UK-regulated PSPs] shall carry out credit transfers in accordance with the following requirements, subject to any obligation laid down in the [F36 the General Data Protection Regulation]:

(a) the payer’s PSP must ensure that the payer provides the data elements specified in point (2)(a) of the Annex;

(b) the payer’s PSP must provide the data elements specified in point (2)(b) of the Annex to the payee’s PSP;

(c) the payee’s PSP must provide or make available to the payee the data elements specified in point (2)(d) of the Annex.

3. [F37 UK-regulated PSPs] shall carry out direct debits in accordance with the following requirements, subject to any obligation laid down in [F38 the General Data Protection Regulation]:

(a) the payee’s PSP must ensure that:

(i)

the payee provides the data elements specified in point (3)(a) of the Annex with the first direct debit and one-off direct debit and with each subsequent payment transaction,

(ii)

the payer gives consent both to the payee and to the payer’s PSP (directly or indirectly via the payee), the mandates, together with later modifications or cancellation, are stored by the payee or by a third party on behalf of the payee and the payee is informed of this obligation by the PSP in accordance with [F39 regulation 48 of, and Schedule 4 to, the Payment Services Regulations 2017];

(b) the payee’s PSP must provide the payer’s PSP with the data elements specified in point (3)(b) of the Annex;

(c) the payer’s PSP must provide or make available to the payer the data elements specified in point (3)(c) of the Annex;

(d) the payer must have the right to instruct its PSP:

(i) to limit a direct debit collection to a certain amount or periodicity or both,

(ii) where a mandate under a payment scheme does not provide for the right to a refund, to verify each direct debit transaction, and to check whether the amount and periodicity of the submitted direct debit transaction is equal to the amount and periodicity agreed in the mandate, before debiting their payment account, based on the mandate-related information,

(iii) to block any direct debits to the payer’s payment account or to block any direct debits initiated by one or more specified payees or to authorise direct debits only initiated by one or more specified payees;

Where neither the payer nor the payee is a consumer, PSPs shall not be required to comply with point (d)(i), (ii) or (iii).

The payer’s PSP shall inform the payer of the rights referred to in point (d) in accordance with [F40 regulation 48 of, and Schedule 4 to, the Payment Services Regulations 2017].

Upon the first direct debit transaction or a one-off direct debit transaction and upon each subsequent direct debit transaction, the payee shall send the mandate-related information to his or her PSP and the payee’s PSP shall transmit that mandate-related information to the payer’s PSP with each direct debit transaction.

[F41 3A. In paragraphs 2 and 3 “the General Data Protection Regulation” means Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation).]

4. In addition to the requirements referred to in paragraph 1, the payee accepting credit transfers shall communicate its payment account identifier specified in point (1)(a) of the Annex F42 ... to its payers, when a credit transfer is requested.

5. Before the first direct debit transaction, a payer shall communicate its payment account identifier specified in point (1)(a) of the Annex. F43 ...

6. Where the framework agreement between the payer and the payer’s PSP does not provide for the right to a refund, the payer’s PSP shall, without prejudice to paragraph (3)(a)(ii), verify each direct debit transaction to check whether the amount of the submitted direct debit transaction is equal to the amount and periodicity agreed in the mandate before debiting the payer’s payment account, based on the mandate-related information.

7. After 1 February 2014 for national payment transactions and after 1 February 2016 for cross-border payment transactions PSPs shall not require PSUs to indicate the BIC of the PSP of a payer or of the PSP of a payee.

8. The payer’s PSP and the payee’s PSP shall not levy additional charges or other fees on the read-out process to automatically generate a mandate for those payment transactions initiated through or by means of a payment card at the point of sale, which result in direct debit.

Textual Amendments

F32 Words in Art. 5(1) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 9(2)(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F33 Words in Art. 5(1)(c) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 9(2)(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F34 Words in Art. 5(1) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 9(2)(c) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F35 Words in Art. 5(2) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 9(3)(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F36 Words in Art. 5(2) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 9(3)(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F37 Words in Art. 5(3) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 9(4)(a)(i) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F38 Words in Art. 5(3) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 9(4)(a)(ii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F39 Words in Art. 5(3)(a)(ii) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 9(4)(a)(iii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F40 Words in Art. 5(3) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 9(4)(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F41 Art. 5(3A) inserted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 9(5) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F42 Words in Art. 5(4) omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 9(6) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F43 Words in Art. 5(5) omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 9(7) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F44 Article 6 U.K. End-dates

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Textual Amendments

F44 Art. 6 omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 10 (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Article 7 U.K. Validity of mandates and right to a refund

1. A valid payee authorisation to collect recurring direct debits in a legacy scheme prior to 1 February 2014 shall continue to remain valid after that date and shall be considered as representing the consent to the payer’s PSP to execute the recurring direct debits collected by that payee in compliance with this Regulation in the absence of national law or customer agreements continuing the validity of direct debit mandates.

2. Mandates as referred to in paragraph 1 shall allow for unconditional refunds and refunds backdated to the date of the refunded payment where such refunds have been provided for within the framework of the existing mandate.

Article 8 U.K. Interchange fees for direct debit transactions

1. Without prejudice to paragraph 2, no MIF per direct debit transaction or other agreed remuneration with an equivalent object or effect shall apply to direct debit transactions.

2. For R-transactions a MIF may be applied provided that the following conditions are complied with:

(a) the arrangement aims at efficiently allocating costs to the PSP which, or the PSU of which, has caused the R-transaction, as appropriate, while taking into account the existence of transaction costs and ensures that the payer is not automatically charged and the PSP is prohibited from charging PSUs in respect of a given type of R-transaction fees that exceed the cost borne by the PSP for such transactions;

(b) the fees are strictly cost based;

(c) the level of the fees does not exceed the actual costs of handling an R-transaction by the most cost-efficient comparable PSP that is a representative party to the arrangement in terms of volume of transactions and nature of services;

(d) the application of the fees in accordance with points (a), (b) and (c) prevent the PSP from charging additional fees relating to the costs covered by those interchange fees to their respective PSUs;

(e) there is no practical and economically viable alternative to the arrangement which would lead to an equally or more efficient handling of R-transactions at equal or lower cost to consumers.

For the purposes of the first subparagraph, only cost categories directly and unequivocally relevant to the handling of the R-transaction shall be considered in the calculation of the R-transaction fees. Those costs shall be precisely determined. The breakdown of the amount of the costs, including separate identification of each of its components, shall be part of the arrangement to allow for easy verification and monitoring.

3. Paragraphs 1 and 2 shall apply mutatis mutandis to unilateral arrangements by a PSP and to bilateral arrangements between PSPs that have an object or effect equivalent to that of a multilateral arrangement.

Article 9 U.K. Payment accessibility

1. A payer making a credit transfer to a payee holding a payment account located within the [F45 qualifying area] shall not specify the [F46 qualifying] State in which that payment account is to be located, provided that the payment account is reachable in accordance with Article 3.

2. A payee accepting a credit transfer or using a direct debit to collect funds from a payer holding a payment account located within the [F47 qualifying area] shall not specify the [F48 qualifying] State in which that payment account is to be located, provided that the payment account is reachable in accordance with Article 3.

Textual Amendments

F45 Words in Art. 9(1) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 11(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F46 Word in Art. 9(1) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 11(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F47 Words in Art. 9(2) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 11(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F48 Word in Art. 9(2) substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 11(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F49 Article 10 U.K. Competent authorities

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Textual Amendments

F49 Art. 10 omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 12(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F50 Article 11 U.K. Penalties

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Textual Amendments

F50 Art. 11 omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 12(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F51 Article 12 U.K. Out-of-court complaint and redress procedures

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Textual Amendments

F51 Art. 12 omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 12(c) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

[F52 Article 13 U.K. Power to amend technical requirements

1. The Treasury may by regulations made by statutory instrument amend the Annex, in order to take account of technical progress and market developments.

2. Any such regulations may—

(a) contain incidental, supplemental, consequential and transitional provision, and

(b) make different provision for different purposes.

3. A statutory instrument containing regulations under this Article is subject to annulment in pursuance of a resolution of either House of Parliament.]

Textual Amendments

F52 Art. 13 substituted (31.12.2020) by The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 13(1) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F53 Article 14 U.K. Exercise of the delegation

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Textual Amendments

F53 Art. 14 omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 13(2) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F54 Article 15 U.K. Review

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Textual Amendments

F54 Art. 15 omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 14(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F55 Article 16 U.K. Transitional provisions

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Textual Amendments

F55 Art. 16 omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 14(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F56 Article 17 U.K. Amendments to Regulation (EC) No 924/2009

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Textual Amendments

F56 Art. 17 omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 14(c) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Article 18 U.K. Entry into force

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

F57 ...

Textual Amendments

F57 Words in Signature omitted (31.12.2020) by virtue of The Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1199), regs. 1(2), 14(d) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)