Payment Services Directive

The PSD is European legislation regulating the provision of payment services by banks and other institutions offering payment services. In addition to regulating most types of payment transactions in EU/EEA currencies such as credit transfers and direct debits, the PSD also regulates the initiation of payment orders via electronic banking packages, the way of reporting transactions in account statements, maximum execution timelines for payment transactions and other payment related matters.

On 1 November 2009, the PSD has been implemented into national legislation of each EU member state as well as Norway, Iceland and Liechtenstein. As a result, banks and institutions offering payment services in all these countries will have to comply with the newly-implemented local law relating to the PSD. Although the PSD has been designed to promote harmonisation as much as possible, member states have some discretion regarding the implementation of certain provisions. Therefore, please bear in mind that there may be differences in how member states implement PSD legislation.