Currency, geographic scope and exclusions under PSD2.
PSD currently only applies if the PSP of both the payer and payee are located within the EEA and the transaction is in sterling, euro or another non-euro Member State currency (with the exception of value dating and immediate availability provisions which apply to 'one-leg out' transactions (that is, those where only the payer or payee’s PSP is in the EEA).
PSD2 will apply, with some exceptions, to 'one-leg out' transactions and all currencies. As a result, many more conduct of business and information requirements will apply to international payments.
The list of activities excluded from regulation has been amended by PSD2. This includes exclusions for:
- commercial agents who negotiate or conclude the sale and purchase of goods and services on behalf of either a payer or payee ( the 'Commercial Agent Exclusion')
- providers of limited network payment instruments, such as gift cards, fuel cards or shopping center cards (the 'Limited Network Exclusion')
- mobile network operators who enable payment transactions for digital goods and services using a telecom, digital or IT device. PSD2 replaces this with an exclusion for transactions provided by electronic communication network providers for digital content and voice-based services, tickets or donations to charity which are charged to a subscriber’s bill, subject to per-transaction and cumulative monetary thresholds (the ‘Electronic Communications Exclusion’)
Firms that benefit from the Limited Network Exclusion will have to notify us if their transactions are over €1 million in any 12 month period and provide a description of their activities. When we receive this notification, we will decide if these services are excluded or not. Firms in this position must continue to give us these notifications every year, unless their transaction value falls below the €1 million limit. Find out more.
All firms relying on the Electronic Communications Exclusion must notify and give us a description of the service. They must also provide us with an annual audit opinion that their customers’ transactions fall within the financial limits stated in the exclusion. Find out more.