Scope and exclusions: changes under the PSRs and EMRs

Currency, geographic scope and exclusions under the Payment Services Regulations 2017 (PSRs) and Electronic Money Regulations 2011 (EMRs).

Currency and geographic scope

With some exceptions, the information and conduct provisions of the PSRs apply to transactions in all currencies. They also apply when both or only one of the payment service providers are in the UK.  

As a result, many conduct of business and information requirements apply to international payments. 

Guidance on the scope of the PSRs can be found in Chapter 8 of Payment Services and Electronic Money – Our Approach.

Exclusions

The list of activities excluded from regulation has been amended under the PSRs and EMRs.

Key changes include:

  • the exemption for commercial agents who negotiate or conclude the sale and purchase of goods and services (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')

If you make use of the Limited Network Exclusion (LNE), you must tell us if your transactions are over €1m in any 12-month period. You must also provide a description of your activities. We will decide if these services are excluded or not.  ​​​​​​

If you benefit from the Electronic Communications Exclusion (ECE), you must tell us. You must also provide us with an annual audit opinion that the transactions fall within the financial limits stated in the exclusion.