i e SD No.2015/0206 PAYMENT SERVICES REGULATIONS 2015
Payment Servies Regulations 2015 Index PAYMENT SERVICES REGULATIONS 2015 Index Regulation Page PART 1 INTRODUCTION 7 1 Title... 7 2 Commenement... 7 3 Appliation... 7 4 Interpretation... 7 PART 2 INFORMATION REQUIREMENTS FOR PAYMENT SERVICES 11 Appliation 11 5 Appliation of this Part... 11 6 Regulations disapplied in the ase of low-value payment instruments... 11 Single payment servie ontrats 12 7 Information required prior to the onlusion of a single payment servie ontrat... 12 8 Information required after reeipt of the payment order... 13 9 Information for the payee after exeution... 13 10 Avoidane of dupliation of information... 14 Framework ontrats 14 11 Prior general information for framework ontrats... 14 12 Information during period of ontrat... 14 13 Changes in ontratual information... 14 14 Termination of framework ontrat... 15 15 Information prior to exeution of individual payment transation... 16 16 Information for the payer on individual payment transations... 16 17 Information for the payee on individual payment transations... 17 Common provisions 17 18 Communiation of information... 17 19 Charges for information... 18 20 Curreny and urreny onversion... 18 21 Information on additional harges or redutions... 18 PART 3 RIGHTS AND OBLIGATIONS IN RELATION TO THE SD No.2015/0206 Page 3
Index Payment Servies Regulations 2015 PROVISION AND USE OF PAYMENT SERVICES 19 Appliation 19 22 Appliation of this Part... 19 23 Certain regulations not applying in the ase of low value payment instruments... 19 Charges 20 24 Charges... 20 25 Consent and withdrawal of onsent... 21 26 Limits on the use of payment instruments... 21 27 Obligations of the payment servie user in relation to payment instruments... 22 28 Obligations of the payment servie provider in relation to payment instruments... 22 29 Notifiation of unauthorised or inorretly exeuted payment transations... 23 30 Evidene on authentiation and exeution of payment transations... 23 31 Payment servie provider s liability for unauthorised payment transations... 24 32 Payer s liability for unauthorised payment transation... 24 33 Refunds for payment transations initiated by or through a payee... 25 34 Requests for refunds for payment transations initiated by or through a payee... 25 Exeution of payment transations 26 35 Reeipt of payment orders... 26 36 Refusal of payment orders... 26 37 Revoation of a payment order... 27 38 Amounts transferred and amounts reeived... 28 Exeution time and value date 28 39 Appliation of regulations 40 to 43... 28 40 Payment transations to a payment aount... 28 41 Absene of payee s payment aount with the payment servie provider... 29 42 Cash plaed on a payment aount... 29 43 Value date and availability of funds... 30 Liability 30 44 Inorret unique identifiers... 30 45 Non-exeution or defetive exeution of payment transations initiated by the payer... 30 46 Non-exeution or defetive exeution of payment transations initiated by the payee... 31 47 Liability of payment servie provider for harges and interest... 31 48 Right of reourse... 32 49 Fore majeure... 32 PART 4 THE COMMISSION AND OFT 32 Funtions of the Commission 32 Page 4 SD No.2015/0206
Payment Servies Regulations 2015 Index 50 Funtions of the Commission: amendment of the Finanial Supervision At 2008... 32 51 Appliation of provisions of the Finanial Servies At 2008... 32 Supervision and enforement 33 52 Reporting requirements... 33 53 Complaints... 33 54 Amendment of the Finanial Servies At 2008... 33 PART 5 OFFENCES 35 55 Contravention of regulations 20 and 21... 35 56 Misleading the Commission or the OFT... 35 SCHEDULE 1 37 SCHEDULE 2 40 MEANING OF EXCEPTED CONTRACT 40 SD No.2015/0206 Page 5
Payment Servies Regulations 2015 Regulation 1 Statutory Doument No. 2015/0206 Payment Servies At 2015 PAYMENT SERVICES REGULATIONS 2015 Approved by Tynwald: 22 July 2015 Coming into operation in aordane with artile 2 The Finanial Supervision Commission makes the following Regulations under setion 4 of the Payment Servies At 2015. PART 1 INTRODUCTION 1 Title These Regulations are the Payment Servies Regulations 2015. 2 Commenement If approved by Tynwald, these Regulations ome into operation on the day following their approval. 3 Appliation These Regulations apply to SEPA appliants, SEPA partiipants and SEPA payment transations. 4 Interpretation (1) In these Regulations the 2008 At means the Finanial Servies At 2008; agent means a person who ats on behalf of an authorised payment institution in the provision of payment servies; authorised payment institution means a person liensed to ondut Class 8(2) ativity by the Commission; branh means a plae of business of an authorised payment institution or an EEA authorised payment institution, other than its head offie, whih has no legal personality and whih arries out diretly all or some of the transations inherent in its business; SD No.2015/0206 Page 7
Regulation 4 Payment Servies Regulations 2015 business day means any day on whih the relevant payment servie provider is open for business as required for the exeution of a payment transation; the Commission means the Finanial Supervision Commission; onsumer means an individual who, in ontrats for payment servies to whih these Regulations apply, is ating for purposes other than a trade, business or profession; ourt means the High Court; diret debit means a payment servie for debiting the payer's payment aount where a payment transation is initiated by the payee on the basis of onsent given by the payer to the payee, to the payee's payment servie provider or to the payer's own payment servie provider; durable medium means any instrument whih enables the payment servie user to store information addressed personally to them in a way aessible for future referene for a period of time adequate for the purposes of the information and whih allows the unhanged reprodution of the information stored; the EEA means the European Eonomi Area; the eletroni money diretive means Diretive 2009/110/EC of the European Parliament and of the Counil of 16 th September 2009 on the taking up, pursuit and prudential supervision of the business of eletroni money institutions(1); eletroni money institution in relation to a person onduting business in or from the Island means a person liensed by the Commission to ondut Class 8(4) ativity; and in relation to a person onduting business in the EEA has the meaning given in Artile 2(1) of the eletroni money diretive; the European Payments Counil means the Conseil Européen des Paiements AISBL; framework ontrat means a ontrat for payment servies whih governs the future exeution of individual and suessive payment transations and whih may ontain the obligation and onditions for setting up a payment aount; funds means banknotes and oins, sriptural money, and eletroni money as defined in Artile 2(2) of the eletroni money diretive; means of distane ommuniation means any means whih, without the simultaneous physial presene of the payment servie provider and the (1) OJ No L 267, 10.10.2009, p.7. Page 8 SD No.2015/0206
Payment Servies Regulations 2015 Regulation 4 payment servie user, may be used for the onlusion of a ontrat for payment servies between those parties; notie means a notie in writing; OFT means the Isle of Man Offie of Fair Trading; payment order means any instrution by a payer; or a payee, to their respetive payment servie provider requesting the exeution of a payment transation; payment system means a funds transfer system with formal and standardised arrangements and ommon rules for the proessing, learing and settlement of payment transations; payment transation means an at, initiated by the payer or payee, of plaing, transferring or withdrawing funds, irrespetive of any underlying obligations between the payer and payee; referene exhange rate means the exhange rate whih is used as the basis to alulate any urreny exhange and whih is made available by the payment servie provider or omes from a publily available soure; referene interest rate means the interest rate whih is used as the basis for alulating any interest to be applied and whih omes from a publily available soure whih an be verified by both parties to a ontrat for payment servies; the Regulated Ativities Order means the Regulated Ativities Order 2011(2) made by the Commission; relevant area means the area omprising the relevant States; relevant authorised payment institution means a person authorised in a relevant State to provide payment servies in aordane with the payment servies diretive; relevant State means an EEA State or the Island; SEPA means the Single Euro Payment Area; and the SEPA Payment Shemes means the SEPA Credit Transfer Sheme; and the SEPA Diret Debit Core Sheme; overseen by the European Payments Counil; single payment servie ontrat means a ontrat for a single payment transation not overed by a framework ontrat; the Tribunal means the Finanial Servies Tribunal(3); (2) SD 2011/0884. SD No.2015/0206 Page 9
Regulation 4 Payment Servies Regulations 2015 unique identifier means a ombination of letters, numbers or symbols speified to the payment servie user by the payment servie provider and to be provided by the payment servie user in relation to a payment transation in order to identify unambiguously one or both of the other payment servie user who is a party to the payment transation; the other payment servie user s payment aount; value date means a referene time used by a payment servie provider for the alulation of interest on the funds debited from or redited to a payment aount. (2) In these Regulations the following expressions have the same meaning as in the Regulated Ativities Order () (d) (e) (f) (g) (h) deposit taker; payee; payer; payment aount; payment instrument; payment servies; payment servie provider; payment servie user. (3) In these Regulations a referene to an ativity of a partiular Class is to be onstrued in aordane with the Regulated Ativities Order. (4) In these Regulations referenes to amounts in euro inlude referenes to equivalent amounts in sterling or a urreny of a relevant State not using the euro. (5) Unless otherwise defined, expressions used in these Regulations whih are also used in the payment servies diretive have the same meaning as in that diretive. (6) Expressions used in these Regulations and in a modifiation to a provision in primary or seondary legislation applied by these Regulations have the same meaning, in the legislation as so applied, as they have in these Regulations. (3) Established under setion 32 of the 2008 At. Page 10 SD No.2015/0206
Payment Servies Regulations 2015 Regulation 5 PART 2 INFORMATION REQUIREMENTS FOR PAYMENT SERVICES Appliation 5 Appliation of this Part (1) This Part applies to a ontrat for payment servies if () the servies are provided from an establishment maintained by a payment servie provider or its agent in the Island; the payment servie providers of both the payer and the payee are loated within the relevant area; and the payment servies are arried out either in euro, in sterling or in the urreny of an EEA State that has not adopted the euro as its urreny. (2) Regulations 7 to 10 apply to payment servies provided under a single payment servie ontrat. (3) Regulations 11 to 17 apply to payment servies provided under a framework ontrat. (4) Unless the payment servie user is a onsumer, the parties may agree that any or all of the provisions of this Part do not apply to a ontrat for payment servies. 6 Regulations disapplied in the ase of low-value payment instruments (1) This regulation applies in respet of payment instruments that, under the framework ontrat governing their use an be used only to exeute individual payment transations of 30 euro or less, or in relation to payment transations exeuted wholly within the Island, 60 euro or less; () have a spending limit of 150 euro, or if payment transations must be exeuted wholly within the Island, 300 euro; or store funds that do not exeed 500 euro at any time. (2) In a ase to whih this regulation applies paragraphs (3) to (5) make provision about the information to be provided. (3) In a ase to whih this regulation applies, regulations 10 and 15 do not apply and the payment servie provider is only required to provide the payer with information about the main harateristis of the payment servie, inluding the way in whih the payment instrument an be used; the liability of the payer, as set out in regulation 32(1); () harges levied; SD No.2015/0206 Page 11
Regulation 7 Payment Servies Regulations 2015 (d) (e) any other material information the payer might need to take an informed deision; and an indiation of where the information speified in Shedule 1 is made available in an easily aessible manner. (4) In a ase to whih this regulation applies, the parties may agree that regulations 15 and 16 do not apply and instead () the payment servie provider must provide or make available a referene enabling the payment servie user to identify the payment transation, its amount and any harges payable in respet of it; in the ase of several payment transations of the same kind made to the same payee, the payment servie provider must provide or make available to the payment servie user information about the total amount of the payment transations and any harges for those payment transations; or if the payment instrument is used anonymously or the payment servie provider is not otherwise tehnially able to provide or make available the information speified in subparagraph or, the payment servie provider must enable the payer to verify the amount of funds stored. (5) The parties may agree that regulation 18(1) does not apply to information provided or made available in aordane with regulation 12. Single payment servie ontrats 7 Information required prior to the onlusion of a single payment servie ontrat (1) A payment servie provider must provide or make available to the payment servie user the information speified in paragraph (2), whether by supplying a opy of the draft single payment servie ontrat or supplying a opy of the draft payment order or otherwise, either before the payment servie user is bound by the single payment servie ontrat; or immediately after the exeution of the payment transation, if the ontrat is onluded at the payment servie user s request using a means of distane ommuniation whih does not enable provision of suh information in aordane with sub-paragraph. (2) The information referred to in paragraph (1) is the information or unique identifier that has to be provided by the payment servie user in order for a payment order to be properly exeuted; Page 12 SD No.2015/0206
Payment Servies Regulations 2015 Regulation 8 () (d) (e) the maximum time in whih the payment servie will be exeuted; the harges payable by the payment servie user to the user s payment servie provider and, if appliable, a breakdown of the amounts of suh harges; if appliable, the atual or referene exhange rate to be applied to the payment transation; and suh of the information speified in Shedule 1 as is relevant to the single payment servie ontrat in question. 8 Information required after reeipt of the payment order (1) The payer s payment servie provider must, immediately after reeipt of the payment order, provide or make available to the payer the information speified in paragraph (2). (2) The information referred to in paragraph (1) is () (d) (e) a referene enabling the payer to identify the payment transation and, if appropriate, information relating to the payee; the amount of the payment transation in the urreny used in the payment order; the amount of any harges for the payment transation payable by the payer and, if appliable, a breakdown of the amounts of suh harges; if an exhange rate is used in the payment transation and the atual rate used in the payment transation differs from the rate provided in aordane with regulation 7(2)(d), the atual rate used or a referene to it, and the amount of the payment transation after that urreny onversion; and the date on whih the payment servie provider reeived the payment order. 9 Information for the payee after exeution (1) The payee s payment servie provider must, immediately after the exeution of the payment transation, provide or make available to the payee the information speified in paragraph (2). (2) The information referred to in paragraph (1) is a referene enabling the payee to identify the payment transation and, if appropriate, the payer and any information transferred with the payment transation; the amount of the payment transation in the urreny in whih the funds are at the payee s disposal; SD No.2015/0206 Page 13
Regulation 10 Payment Servies Regulations 2015 () (d) (e) the amount of any harges for the payment transation payable by the payee and, if appliable, a breakdown of the amount of suh harges; if appliable, the exhange rate used in the payment transation by the payee s payment servie provider, and the amount of the payment transation before that urreny onversion; and the redit value date. 10 Avoidane of dupliation of information If a payment order for a single payment transation is transmitted by way of a payment instrument issued under a framework ontrat, the payment servie provider in respet of that single payment transation need not provide or make available under regulations 7 to 9 information whih has been provided or made available, or will be provided or made available, under regulations 11 to 16 by another payment servie provider in respet of the framework ontrat. Framework ontrats 11 Prior general information for framework ontrats (1) A payment servie provider must provide to the payment servie user the information speified in Shedule 1, either in good time before the payment servie user is bound by the framework ontrat; or if the ontrat is onluded at the payment servie user s request using a means of distane ommuniation whih does not enable provision of suh information in aordane with sub-paragraph, immediately after the onlusion of the ontrat. (2) The payment servie provider may disharge the duty under paragraph (1) by supplying a opy of the draft framework ontrat provided that suh ontrat inludes the information speified in Shedule 1. 12 Information during period of ontrat If the payment servie user so requests at any time during the ontratual relationship, the payment servie provider must provide the information speified in Shedule 1 and the terms of the framework ontrat. 13 Changes in ontratual information (1) Subjet to paragraph (4), any proposed hanges to the existing terms of the framework ontrat; or the information speified in Shedule 1, Page 14 SD No.2015/0206
Payment Servies Regulations 2015 Regulation 14 must be provided by the payment servie provider to the payment servie user no later than two months before the date on whih they are to take effet. (2) The framework ontrat may provide for any suh proposed hanges to be made unilaterally by the payment servie provider if the payment servie user does not, before the proposed date of entry into fore of the hanges, notify the payment servie provider to the ontrary. (3) If paragraph (2) applies, the payment servie provider must inform the payment servie user that the payment servie user will be deemed to have aepted the hanges in the irumstanes referred to in that paragraph; and the payment servie user has the right to terminate the framework ontrat immediately and without harge before the proposed date of their entry into fore. (4) Changes in the interest or exhange rates may be applied immediately and without notie if suh a right is agreed under the framework ontrat and the hanges are based on the referene interest or exhange rates information on whih has been provided to the payment servie user in aordane with this Part; or the hanges are more favourable to the payment servie user. (5) The payment servie provider must inform the payment servie user of any hange to the interest rate as soon as possible unless the parties have agreed on a speifi frequeny or manner in whih the information is to be provided or made available. (6) Any hange in the interest or exhange rate used in payment transations must be implemented and alulated in a neutral manner that does not disriminate against payment servie users. 14 Termination of framework ontrat (1) The payment servie user may terminate the framework ontrat at any time unless the parties have agreed on a period of notie not exeeding one month. (2) Subjet to paragraph (3), any harges for the termination of the ontrat must reasonably orrespond to the atual osts to the payment servie provider of termination. (3) The payment servie provider may not harge the payment servie user for the termination, after the expiry of 12 months, of a framework ontrat onluded for a fixed period of more than 12 months or for an indefinite period. SD No.2015/0206 Page 15
Regulation 15 Payment Servies Regulations 2015 (4) The payment servie provider may terminate a framework ontrat onluded for an indefinite period by giving at least two months notie, if the ontrat so provides. (5) Notie of termination given in aordane with paragraph (4) must be provided in the same way as information is required by regulation 18 to be provided or made available. (6) If harges for the payment servie are levied on a regular basis, suh harges must be apportioned up until the time of the termination of the ontrat and any harges paid in advane must be reimbursed proportionally. (7) This regulation does not affet any right of a party to the framework ontrat to treat it in aordane with the general law of ontrat, as unenforeable, void or disharged. 15 Information prior to exeution of individual payment transation If an individual payment transation under a framework ontrat is initiated by the payer, at the payer s request the payer s payment servie provider must inform the payer of () the maximum exeution time; the harges payable by the payer in respet of the payment transation; and if appliable, a breakdown of the amounts of suh harges. 16 Information for the payer on individual payment transations (1) The payer s payment servie provider under a framework ontrat must provide to the payer the information speified in paragraph (2) as soon as reasonably pratiable either after the amount of an individual payment transation is debited from the payer s payment aount; or if the payer does not use a payment aount, after reeipt of the payment order. (2) The information referred to in paragraph (1) is () a referene enabling the payer to identify eah payment transation and, if appropriate, information relating to the payee; the amount of the payment transation in the urreny in whih the payer s payment aount is debited or in the urreny used for the payment order; the amount of any harges for the payment transation and, if appliable, a breakdown of the amounts of suh harges, or the interest payable by the payer; Page 16 SD No.2015/0206
Payment Servies Regulations 2015 Regulation 17 (d) (e) if appliable, the exhange rate used in the payment transation by the payer s payment servie provider and the amount of the payment transation after that urreny onversion; and the debit value date or the date of reeipt of the payment order. (3) A framework ontrat may inlude a ondition that the information speified in paragraph (2) be provided or made available periodially at least one a month and in an agreed manner whih enables the payer to store and reprodue the information unhanged. 17 Information for the payee on individual payment transations (1) As soon as reasonably pratiable after the exeution of an individual payment transation under a framework ontrat, the payee s payment servie provider must provide to the payee the information speified in paragraph (2). (2) The information referred to in paragraph (1) is () (d) (e) a referene enabling the payee to identify the payment transation and, if appropriate, the payer, and any information transferred with the payment transation; the amount of the payment transation in the urreny in whih the payee s payment aount is redited; the amount of any harges for the payment transation and, if appliable, a breakdown of the amounts of suh harges, or the interest payable by the payee; if appliable, the exhange rate used in the payment transation by the payee s payment servie provider, and the amount of the payment transation before that urreny onversion; and the redit value date. (3) A framework ontrat may inlude a ondition that the information speified in paragraph (2) is to be provided or made available periodially at least one a month and in an agreed manner whih enables the payee to store and reprodue the information unhanged. Common provisions 18 Communiation of information (1) Subjet to regulation 6(4)(), any information provided or made available in aordane with this Part must be provided or made available in the ase of single payment servie ontrats, in an easily aessible manner; on paper or on another durable medium, but subjet to paragraph (2); SD No.2015/0206 Page 17
Regulation 19 Payment Servies Regulations 2015 () in easily understandable language and in a lear and omprehensible form; and (d) (2) Paragraph (1) in English or in the language agreed by the parties. only applies in the ase of single payment servie ontrats if the payment servie user so requests; and in the ase of framework ontrats is subjet to any agreement in aordane with regulation 16(3) or 17(3) as to the manner in whih information is to be provided or made available. 19 Charges for information (1) A payment servie provider may not harge for providing or making available information whih is required to be provided or made available by this Part. (2) The payment servie provider and the payment servie user may agree on harges for any information whih is provided at the request of the payment servie user if suh information is () additional to the information required to be provided or made available by this Part; provided more frequently than is speified in this Part; or transmitted by means of ommuniation other than those speified in the framework ontrat. (3) Any harges imposed under paragraph (2) must reasonably orrespond to the payment servie provider s atual osts. 20 Curreny and urreny onversion (1) Payment transations must be exeuted in the urreny agreed between the parties. (2) If a urreny onversion servie is offered before the initiation of the payment transation at the point of sale; or by the payee, the party offering the urreny onversion servie to the payer must dislose to the payer all harges as well as the exhange rate to be used for onverting the payment transation. 21 Information on additional harges or redutions (1) The payee must inform the payer of any harge requested or redution offered by the payee for the use of a partiular payment instrument before the initiation of the payment transation. Page 18 SD No.2015/0206
Payment Servies Regulations 2015 Regulation 22 (2) The payment servie provider, or any relevant third party, must inform the payment servie user of any harge requested by the payment servie provider or third party, as the ase may be, for the use of a partiular payment instrument before the initiation of the payment transation. PART 3 RIGHTS AND OBLIGATIONS IN RELATION TO THE PROVISION AND USE OF PAYMENT SERVICES Appliation 22 Appliation of this Part (1) This Part applies to a ontrat for payment servies if () the servies are provided from an establishment maintained by a payment servie provider or its agent in the Island; subjet to paragraph (2), the payment servie providers of both the payer and the payee are loated within the relevant area; and if the payment servies are arried out in euro or in the urreny of an EEA State that has not adopted the euro as its urreny. (2) Regulation 43(1) applies whether or not the payment servie providers of both the payer and the payee are loated within the relevant area. (3) Unless the payment servie user is a onsumer, the parties may agree that any or all of regulations 24(1), 25(3) or (4), 30, 32, 35, 37, 45, 46 and 47 do not apply; a different time period applies for the purposes of regulation 29(1). 23 Certain regulations not applying in the ase of low value payment instruments (1) This regulation applies in respet of payment instruments that, under the framework ontrat governing their use an be used only to exeute individual payment transations of 30 euro or less, or in relation to payment transations exeuted wholly within the Island, 60 euro or less; () have a spending limit of 150 euro, or if payment transations must be exeuted wholly within the Island, 300 euro; or store funds that do not exeed 500 euro at any time. (2) If this regulation applies the parties may agree that SD No.2015/0206 Page 19
Regulation 24 Payment Servies Regulations 2015 () regulations 27(1), 28(1)(), (d) and (e) and 32(3) do not apply if the payment instrument does not allow for the stopping or prevention of its use; regulations 30, 31 and 32(1) and (2) do not apply if the payment instrument is used anonymously or the payment servie provider is not in a position, for other reasons onerning the payment instrument, to prove that a payment transation was authorised; the payment servie provider is not required under regulation 36(1) to notify the payment servie user of the refusal of a payment order if the non-exeution is apparent from the ontext; (d) the payer may not revoke the payment order under regulation 37 after transmitting the payment order or giving their onsent to exeute the payment transation to the payee; (e) exeution periods other than those provided by regulations 40 and 41 apply. (3) Subjet to paragraph (2), regulations 31, and 32(1) and (2) apply to eletroni money, as defined in Artile 2(2) of the eletroni money diretive, unless the payer s payment servie provider does not have the ability under the ontrat to freeze the payment aount; or stop the use of the payment instrument. Charges 24 Charges (1) The payment servie provider may only harge the payment servie user for the fulfilment of any of its obligations under this Part () in aordane with regulation 36(3), 37(1) or 44(2); if agreed between the parties; and if suh harges reasonably orrespond to the payment servie provider s atual osts. (2) If a payment transation does not involve any urreny onversion, the respetive payment servie providers must ensure that the payee pays any harges levied by the payee s payment servie provider; and the payer pays any harges levied by the payer s payment servie provider. (3) The payee s payment servie provider may not prevent the payee from requiring payment of a harge by; or offering a redution to, Page 20 SD No.2015/0206
Payment Servies Regulations 2015 Regulation 25 the payer for the use of a partiular payment instrument. Authorisation of payment transations 25 Consent and withdrawal of onsent (1) A payment transation is to be regarded as having been authorised by the payer for the purposes of this Part only if the payer has given its onsent to (2) Suh onsent the exeution of the payment transation; or the exeution of a series of payment transations of whih that payment transation forms part. may be given before or, if agreed between the payer and its payment servie provider, after the exeution of the payment transation; and must be given in the form, and in aordane with the proedure, agreed between the payer and its payment servie provider. (3) The payer may withdraw its onsent to a payment transation at any time before the point at whih the payment order an no longer be revoked under regulation 37(1). (4) Subjet to regulation 37(3) to (5), the payer may withdraw its onsent to the exeution of a series of payment transations at any time with the effet that any future payment transations are not regarded as authorised for the purposes of this Part. 26 Limits on the use of payment instruments (1) If a speifi payment instrument is used for the purpose of giving onsent to the exeution of a payment transation, the payer and its payment servie provider may agree on spending limits for any payment transations exeuted through that payment instrument. (2) A framework ontrat may provide for the payment servie provider to have the right to stop the use of a payment instrument on reasonable grounds relating to () the seurity of the payment instrument; the suspeted unauthorised or fraudulent use of the payment instrument; or in the ase of a payment instrument with a redit line, a signifiantly inreased risk that the payer may be unable to fulfil its liability to pay. (3) The payment servie provider must, in the manner agreed between the payment servie provider and the payer and before arrying out any measures to stop the use of the payment instrument SD No.2015/0206 Page 21
Regulation 27 Payment Servies Regulations 2015 inform the payer that it intends to stop the use of the payment instrument; and give its reasons for doing so. (4) If the payment servie provider is unable to inform the payer in aordane with paragraph (3) before arrying out any measures to stop the use of the payment instrument, it must do so immediately after. (5) Paragraphs (3) and (4) do not apply if provision of the information in aordane with paragraph (3) would ompromise reasonable seurity measures or is otherwise unlawful. (6) The payment servie provider must allow the use of the payment instrument or replae it with a new payment instrument as soon as pratiable after the reasons for stopping its use ease to exist. 27 Obligations of the payment servie user in relation to payment instruments (1) A payment servie user to whom a payment instrument has been issued must use the payment instrument in aordane with the terms and onditions governing its issue and use; and notify the payment servie provider in the agreed manner and without undue delay on beoming aware of the loss, theft, misappropriation or unauthorised use of the payment instrument. (2) The payment servie user must on reeiving a payment instrument take all reasonable steps to keep its personalised seurity features safe. 28 Obligations of the payment servie provider in relation to payment instruments (1) A payment servie provider issuing a payment instrument must () subjet to regulation 27(1), ensure that the personalised seurity features of the payment instrument are not aessible to persons other than the payment servie user to whom the payment instrument has been issued; not send an unsoliited payment instrument, exept if a payment instrument already issued to a payment servie user is to be replaed; ensure that appropriate means are available at all times to enable the payment servie user to notify the payment servie provider in aordane with regulation 27(1) or to request that the use of the payment instrument is no longer stopped in aordane with regulation 26(6); Page 22 SD No.2015/0206
Payment Servies Regulations 2015 Regulation 29 (d) (e) on request, provide the payment servie user at any time during a period of 18 months after the alleged date of notifiation under regulation 27(1) with the means to prove that suh notifiation to the payment servie provider was made; prevent any use of the payment instrument one notifiation has been made under regulation 27(1). (2) The payment servie provider bears the risk of sending a payment instrument or any of its personalised seurity features to the payment servie user. 29 Notifiation of unauthorised or inorretly exeuted payment transations (1) A payment servie user is entitled to redress under regulation 31, 45, 46 or 47 only if the user notifies the payment servie provider without undue delay, and in any event no later than 13 months after the debit date, on beoming aware of any unauthorised or inorretly exeuted payment transation. (2) If the payment servie provider has failed to provide or make available information onerning the payment transation in aordane with Part 2 of these Regulations, the payment servie user is entitled to redress under the regulations referred to in paragraph (1) despite the payment servie user s failure to notify the payment servie provider as mentioned in that paragraph. 30 Evidene on authentiation and exeution of payment transations (1) If a payment servie user denies having authorised an exeuted payment transation; or laims that a payment transation has not been orretly exeuted, it is for the payment servie provider to prove that the payment transation was authentiated, aurately reorded, entered in the payment servie provider s aounts and not affeted by a tehnial breakdown or some other defiieny. (2) In paragraph (1) authentiated means the use of any proedure by whih a payment servie provider is able to verify the use of a speifi payment instrument, inluding its personalised seurity features. (3) If a payment servie user denies having authorised an exeuted payment transation, the use of a payment instrument reorded by the payment servie provider is not in itself neessarily suffiient to prove either that the payment transation was authorised by the payer; or SD No.2015/0206 Page 23
Regulation 31 Payment Servies Regulations 2015 the payer ated fraudulently or failed with intent or gross negligene to omply with regulation 27(1). 31 Payment servie provider s liability for unauthorised payment transations Subjet to regulations 29(1) and 30(1), if an exeuted payment transation was not authorised in aordane with regulation 25(1), the payment servie provider must immediately refund the amount of the unauthorised payment transation to the payer; and if appliable, restore the debited payment aount to the state it would have been in had the unauthorised payment transation not taken plae. 32 Payer s liability for unauthorised payment transation (1) The payer is liable up to a maximum of 50 for any losses inurred in respet of unauthorised payment transations arising from the use of a lost or stolen payment instrument; or if the payer has failed to keep the personalised seurity features of the payment instrument safe, from the misappropriation of the payment instrument. This is subjet to paragraphs (2) and (3). (2) The payer is liable for all losses inurred in respet of an unauthorised payment transation if the payer has ated fraudulently; or has with intent or gross negligene failed to omply with regulation 27(1). (3) Unless the payer has ated fraudulently, the payer is not liable for any losses inurred in respet of an unauthorised payment transation () arising after notifiation under regulation 27(1); if the payment servie provider has failed at any time to provide, in aordane with regulation 28(1)(), appropriate means for notifiation; or if the payment instrument has been used in onnetion with a distane ontrat (other than an exepted ontrat). (4) In paragraph (3)() distane ontrat has the meanings given in Part VIIIA of the Consumer Protetion At 1991; and exepted ontrat has the meaning given in Shedule 2 to these Regulations. Page 24 SD No.2015/0206
Payment Servies Regulations 2015 Regulation 33 33 Refunds for payment transations initiated by or through a payee (1) If the onditions in paragraph (2) and the requirement in regulation 34(1) are satisfied, the payer is entitled to a refund from its payment servie provider of the full amount of any authorised payment transation initiated by or through the payee. (2) The onditions are that the authorisation did not speify the exat amount of the payment transation when the authorisation was given in aordane with regulation 25(1); and the amount of the payment transation exeeded the amount that the payer ould reasonably have expeted taking into aount the payer s previous spending pattern, the onditions of the framework ontrat and the irumstanes of the ase. (3) The payer and payment servie provider may agree in the framework ontrat, in respet of diret debits, that the onditions in paragraph (2) need not be satisfied in order for the payer to be entitled to a refund. (4) For the purposes of paragraph (2), the payer annot rely on urreny exhange flutuations if the referene exhange rate provided under regulation 7(2)(d) or paragraph 3 of Shedule 1 was applied. (5) The payer and payment servie provider may agree in the framework ontrat that the right to a refund does not apply where the payer has given onsent diretly to the payment servie provider for the payment transation to be exeuted; and if appliable, information on the payment transation was provided or made available in an agreed manner to the payer for at least four weeks before the due date by the payment servie provider or by the payee. 34 Requests for refunds for payment transations initiated by or through a payee (1) The payer must request a refund under regulation 33 from its payment servie provider within 8 weeks from the date on whih the funds were debited. (2) The payment servie provider may require the payer to provide suh information as is reasonably neessary to asertain whether the onditions in regulation 33(2) are satisfied. (3) Subjet to paragraph (4), the payment servie provider must either refund the full amount of the payment transation; or provide justifiation for refusing to refund the payment transation, indiating the bodies to whih the payer may refer the matter if the payer does not aept the justifiation provided. SD No.2015/0206 Page 25
Regulation 35 Payment Servies Regulations 2015 (4) If an agreement in aordane with regulation 33(3) applies, the payment servie provider must, notwithstanding that a ondition in regulation 33(2) is not satisfied, refund the full amount of the payment transation. (5) Any refund or justifiation for refusing a refund must be provided within 10 business days of reeiving a request for a refund or, if appliable, within 10 business days of reeiving any further information requested under paragraph (2). Exeution of payment transations 35 Reeipt of payment orders (1) For the purposes of these Regulations the time of reeipt of a payment order is the time when payment order, given diretly by the payer or indiretly by or through a payee, is reeived by the payer s payment servie provider, but subjet to paragraphs (2) to (5). (2) If the time of reeipt of a payment order does not fall on a business day for the payer s payment servie provider, the payment order is deemed to have been reeived on the first business day thereafter. (3) The payment servie provider may set a time towards the end of a business day after whih any payment order reeived will be deemed to have been reeived on the following business day. (4) If the payment servie user initiating a payment order agrees with its payment servie provider that exeution of the payment order is to take plae () on a speifi day; on the last day of a ertain period; or on the day on whih the payer has put funds at the disposal of its payment servie provider, the time of reeipt is deemed to be the day so agreed. (5) If the day agreed under paragraph (4) is not a business day for the payer s payment servie provider, the payment order is deemed to have been reeived on the first business day thereafter. 36 Refusal of payment orders (1) If a payment servie provider refuses to exeute a payment order, it must notify the payment servie user of () the refusal; if possible, the reasons for suh refusal; and if it is possible provide reasons for the refusal and those reasons relate to fatual matters, the proedure for retifying any fatual errors that led to the refusal. Page 26 SD No.2015/0206
Payment Servies Regulations 2015 Regulation 37 This is subjet to paragraph (4). (2) Any notifiation under paragraph (1) must be given or made available in an agreed manner and at the earliest opportunity, and in any event within the periods speified in regulation 40(1). (3) The framework ontrat may provide for the payment servie provider to harge the payment servie user for suh notifiation if the refusal is reasonably justified. (4) The payment servie provider is not required to notify the payment servie user under paragraph (1) if suh notifiation would be otherwise unlawful. (5) If all the onditions set out in the payer s framework ontrat have been satisfied, the payment servie provider may not refuse to exeute an authorised payment order irrespetive of whether the payment order is initiated by the payer or by or through a payee, unless suh exeution is otherwise unlawful. (6) For the purposes of regulations 40, 45 and 46 a payment order of whih exeution has been refused is deemed not to have been reeived. 37 Revoation of a payment order (1) A payment servie user may only revoke a payment order, after it has been reeived by the payer s payment servie provider, as provided in paragraphs (2) to (5). (2) In the ase of a payment transation initiated by or through the payee, the payer may not revoke the payment order after transmitting the payment order or giving onsent to exeute the payment transation to the payee. (3) In the ase of a diret debit, the payer may not revoke the payment order after the end of the business day preeding the day agreed for debiting the funds. (4) If a day is agreed under regulation 35(4), the payment servie user may not revoke a payment order after the end of the business day preeding the agreed day. (5) At any time after the time limits for revoation set out in paragraphs (1) to (4), the payment order may only be revoked if the revoation is agreed between the payment servie user and its payment servie provider; and in the ase of a payment transation initiated by or through the payee, inluding in the ase of a diret debit, also agreed with the payee. (6) A framework ontrat may provide for the payment servie provider to harge for revoation under this regulation. SD No.2015/0206 Page 27
Regulation 38 Payment Servies Regulations 2015 38 Amounts transferred and amounts reeived (1) The payment servie providers of the payer and payee must ensure that the full amount of the payment transation is transferred and that no harges are deduted from the amount transferred, but subjet to paragraph (2). (2) The payee and its payment servie provider may agree for the payment servie provider to dedut its harges from the amount transferred before rediting it to the payee provided that the full amount of the payment transation and the amount of the harges are learly stated in the information provided to the payee. (3) If harges other than those provided for by paragraph (2) are deduted from the amount transferred in the ase of a payment transation initiated by the payer, the payer s payment servie provider must ensure that the payee reeives the full amount of the payment transation; in the ase of a payment transation initiated by the payee, the payee s payment servie provider must ensure that the payee reeives the full amount of the payment transation. Exeution time and value date 39 Appliation of regulations 40 to 43 (1) Regulations 40 to 43 apply to any payment transation () in euro; exeuted in sterling wholly within the Island; or involving only one urreny onversion between the euro and sterling, provided that (i) (ii) the urreny onversion is arried out in the Island; and in the ase of ross-border payment transations, the rossborder transfer takes plae in euro. (2) In respet of any other payment transation, the payment servie user may agree with the payment servie provider that regulations 40 (other than regulation 40(4)) to 43 do not apply. 40 Payment transations to a payment aount (1) The payer s payment servie provider must ensure that the amount of the payment transation is redited to the payee s payment servie provider s aount by the end of the business day following the time of reeipt of the payment order. This is subjet to paragraphs (2) and (3). Page 28 SD No.2015/0206
Payment Servies Regulations 2015 Regulation 41 (2) If a payment transation is initiated by way of a paper payment order the referene in paragraph (1) to the end of the business day following the time of reeipt of the payment order is to be treated as a referene to the end of the seond business day following the time of reeipt of the payment order. (3) If a payment transation does not fall within paragraphs to () of regulation 39(1); but is to be exeuted wholly within the relevant area, the payer s payment servie provider must ensure that the amount of the payment transation is redited to the payee s payment servie provider s aount by the end of the fourth business day following the time of reeipt of the payment order. (4) The payee s payment servie provider must value date and redit the amount of the payment transation to the payee s payment aount following its reeipt of the funds. (5) The payee s payment servie provider must transmit a payment order initiated by or through the payee to the payer s payment servie provider within the time limits agreed between the payee and its payment servie provider, enabling settlement in respet of a diret debit to our on the agreed due date. 41 Absene of payee s payment aount with the payment servie provider (1) If a payment servie provider aepts funds on behalf of a payee who does not have a payment aount with that payment servie provider, paragraph (2) applies. (2) The payment servie provider must make the funds available to the payee immediately after the funds have been redited to that payment servie provider s aount. 42 Cash plaed on a payment aount If a payment servie user plaes ash on its payment aount with a payment servie provider in the same urreny as that payment aount, the payment servie provider must if the user is a onsumer, ensure that the amount is made available and value dated immediately after the reeipt of the funds; in any other ase, ensure that the amount is made available and value dated no later than the end of the next business day after the reeipt of the funds. SD No.2015/0206 Page 29
Regulation 43 Payment Servies Regulations 2015 43 Value date and availability of funds (1) The redit value date for the payee s payment aount must be no later than the business day on whih the amount of the payment transation is redited to the aount of the payee s payment servie provider. (2) The payee s payment servie provider must ensure that the amount of the payment transation is at the payee s disposal immediately after that amount has been redited to that payment servie provider s aount. (3) The debit value date for the payer s payment aount must be no earlier than the time at whih the amount of the payment transation is debited to that payment aount. Liability 44 Inorret unique identifiers (1) If a payment order is exeuted in aordane with the unique identifier, the payment order is deemed to have been orretly exeuted by eah payment servie provider involved in exeuting the payment order with respet to the payee speified by the unique identifier. (2) If the unique identifier provided by the payment servie user is inorret, the payment servie provider is not liable under regulation 45 or 46 for non-exeution or defetive exeution of the payment transation, but the payment servie provider must make reasonable efforts to reover the funds involved in the payment transation; and may, if agreed in the framework ontrat, harge the payment servie user for any suh reovery. (3) If the payment servie user provides information additional to that speified in regulation 7(2) or paragraph 2 of Shedule 1, the payment servie provider is liable only for the exeution of payment transations in aordane with the unique identifier provided by the payment servie user. 45 Non-exeution or defetive exeution of payment transations initiated by the payer (1) This regulation applies if a payment order is initiated by the payer. (2) The payer s payment servie provider is liable to the payer for the orret exeution of the payment transation unless it an prove to the payer and, if relevant, to the payee s payment servie provider, that the payee s payment servie provider reeived the amount of the payment transation in aordane with regulation 40. Page 30 SD No.2015/0206