Electronic communications exclusion (ECE)

1. Under PSD2 the existing ‘digital download’ exemption has been removed and replaced by ECE.

2. Transactions provided by electronic communication providers (such as mobile network operators) for digital content and voice-based services, tickets or donations to charity which are charged to a subscriber’s bill may be excluded from regulation.

3. You should review Q41A in PERG* to understand whether the service you provide can be operated under the ECE or whether authorisation or registration is required. PERG 3 and PERG 15 are amended by the Payment Services Instrument 2017 and you can see the revised PERG on our Handbook website by setting the date to 13 January 2018. Please also familiarise yourself with the Approach Document (Chapter 3 in particular) in light of the perimeter changes in PSD2 and recent developments in payment services.

4. Businesses that currently operate under the ECE will have to notify us by 13 January 2018 and provide a description of their activities. When we receive this notification, we will decide if these services are excluded or not. There will be a fee of £200 for the notification.

5. Following their initial notification, businesses operating under the exclusion must provide an auditor’s report testifying that the payment transactions they provide do not exceed limits of £40 per single payment transaction or £240 cumulative value of payment transactions for an individual subscriber per month.

6. If you have any questions, you can contact us.