A law on payment services. It was adopted by the European Parliament and the Council (EU) at the end of 2015, and in Poland part of the provisions of this complex directive entered into force on December 20, 2018. Until then, all domestic financial institutions had to adapt their offer, systems and regulations.
The implementation of the directive into national law was amended by the act on payment services, which came into force on June 20, 2018. However, this is just the beginning of important changes. The financial services industry is preparing for the next date when it must adapt to the specifics of this regulation.
What important changes have you made to the PSDII directive?
First of all, as a consumer of payment services, you can enjoy greater protection. Here are examples of changes that increase your security.
- Less responsibility for unauthorized transactions
The PSD2 directive has reduced your liability for too late reporting of an unauthorized transaction, i.e. one that was carried out without your consent using or without a payment instrument. Now you only answer financially up to 50 euros (previously it was 150 euros). If you did not realize that you were robbed in accordance with the PSD2 directive, you should not be liable. However, there is a small caveat here – protection with an allowable limit does not apply if you have been grossly negligent, theft of money from your account, or if your intentions were unfair.
- Change of complaint handling rules
Thanks to PSD2, you will receive the advertised amount the next business day. Importantly, the service provider must prove that your complaint is unfounded. In addition, the complaint analysis period was shortened from 30 to 15 business days.
- Strong authentication
The PSDII directive also introduced the need for strong authentication. This means that when making a payment, your identification should be done using at least two elements belonging to the category: knowledge (something that only you know), possession (something that only you have) and customer features (something that only distinguishes You – your biometric data). In practice, this can be done using an SMS code and biometric solutions.
The exception to this rule are:
- minor card or telephone payments (max. 30 euros, and strong authentication is required when the total amount of these transactions exceeds 100 euros or every fifth transaction),
- some contactless payments (not exceeding 50 euros, unless the total amount of transactions carried out since the last application of strong authentication exceeds 150 euros, then it should be used again, as well as every fifth transaction),
- transactions for trusted recipients (if the addition to the group of trusted recipients was preceded by strong authentication),
- recurring payments (except that strong authentication must be used to initiate a recurring transaction).
It is worth remembering that the transaction carried out without strong authentication, debits the entrepreneur’s account, not yours.
How does the PSD2 directive affect your finances?
The new law has introduced several changes that have a positive impact on your finances.
- It’s easier to change the bank to a cheaper one
The PSD2 directive guarantees you a free termination of the framework agreement with the bank. So you can change your financial institution easier and faster to a cheaper one that better suits your needs. The exception is the first six months. If you terminate the contract before its expiry, the bank may impose fees corresponding to the costs incurred by its termination. The maximum notice periods for you are a month, while for a bank – not less than two months.
- More favorable currency transactions
The PSDII Directive introduced a change in cost options in transfers within the European Economic Area. The costs associated with the execution of a currency transfer are shared between both parties involved in the transaction.
- Faster and more transparent payments in foreign currency
Currently, your transfer or money transfer denominated in euro or another Member State currency must be made within a maximum of one day. For this you must be informed about the actual costs and fees, so that you can choose the best offer.
- The funds are blocked on your account only if you agree
You are also better protected if you do not know yet what the final amount of the transaction will be. This happens when you pay by card, e.g. for renting a car. Thanks to PSDII, funds will not be charged until you agree to block a specific amount on your account.
Do you have more choice?
The new PSD directive is a step towards integrating the European payments market, and thus – increasing your security when making remote and electronic payments. It also makes it possible to increase competitiveness on the market, and thus reduce prices.
The PSD2 Directive has introduced new entities to the payment services market. These are AISP (providers providing account access service) and PISP (initiating payment transactions), which are referred to as TPP (third party providers). Service providers operating on a small scale also appeared – these are MIP (small payment institutions).