Currency, geographic scope and exclusions under PSD2.
Currency and geographic scope
With some exceptions, the information and conduct provisions of PSD2 apply to transactions in all currencies, and whether both or only one of the PSPs is in the EEA. As a result, many more conduct of business and information requirements will apply to international payments. Guidance on the scope of the PSRs 2017 can be found in chapter 2 of our document Payment Services and Electronic Money – Our Approach.
The list of activities excluded from regulation under PSD has been amended under PSD2. Key changes include the following:
- The exemption for commercial agents who negotiate or conclude the sale and purchase of goods and services on behalf of (the 'Commercial Agent Exclusion') has been amended to make clear that the commercial agent may act on behalf of either the payer or the payee, but not both.
- The exclusion for payment instruments that can only be used in a limited way (the 'Limited Network Exclusion'), such as some gift cards, fuel cards or shopping centre cards has been clarified, and a new ‘social purpose’ element added to the exclusion.
- The digital download exemption has been replaced 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 make use of the Limited Network Exclusion will have to notify their competent authority (in the UK the FCA) if their transactions are over €1 million in any 12 month period and provide a description of their activities. The competent authority must decide if these services are excluded or not. Find out more.
Those that benefit from the Electronic Communications Exclusion must notify their competent authority and provide it with an annual audit opinion that the transactions fall within the financial limits stated in the exclusion. Find out more.