The revised Payment Services Directive (PSD2), which applied as of 13 January 2018, aims to modernize Europe’s payment services to the benefit of both consumers and businesses, so as to keep pace with this rapidly evolving market.

Valdis Dombrovskis, Vice-President responsible for Financial Stability, Financial Services and Capital Markets Union said.

“This legislation is another step towards a digital single market in the EU. It will promote the development of innovative online and mobile payments, which will benefit the economy and growth. With PSD2 becoming applicable, we are banning surcharges for consumer debit and credit card payments. This could save more than €550 million per year for EU consumers. Consumers will also be better protected when they make payments.”

The new rules will:

• Prohibit surcharging, which are additional charges for payments with consumer credit or debit cards, both in shops or online;
• Open the EU payment market to companies offering payment services, based on them gaining access to information about the payment account;
• Introduce strict security requirements for electronic payments and for the protection of consumers’ financial data;
• Enhance consumers’ rights in numerous areas. These include reducing the liability for non-authorised payments and introducing an unconditional (“no questions asked”) refund right for direct debits in euro.

These rules will be applicable as of 13 January 2018 through provisions that Member States have introduced in their national laws in compliance with the EU legislation. The Commission calls on Member States who have not yet transposed the Directive, to do so as a matter of urgency.