Saturday, 25 April 2009

EU: New Regulation on cross-border payments

The Single Euro Payments Area (SEPA) takes a further step towards completion. The Payment Services Directive (PSD) 2007/64/EC, which will be implemented from 1 November 2009, is going to be complemented by a new Regulation on cross-border payments, which extends the principle of equal charges for national and cross-border payments to direct debits.


European Parliament

The European Parliament has approved the text of a new Regulation on cross-border payments. At this stage, the adopted text can be found in the compilation of resolutions adopted on Friday 24 April 2009 (from page 129).

Here are the exact references:


Cross-border payments in the Community ***I

European Parliament legislative resolution of 24 April 2009 on the proposal for a regulation of the European Parliament and of the Council on cross-border payments in the Community (COM(2008)0640 – C6-0352/2008 – 2008/0194(COD))
(Codecision procedure: first reading)



Article 1 of the new Regulation presents its scope:

Article 1

Subject matter and scope

1. This Regulation lays down rules on cross-border payments within the Community, ensuring that charges for those payments are the same as those for payments in the same currency within a Member State.

2. This Regulation applies to cross-border payments, in accordance with the provisions of Directive 2007/64/EC, which are denominated in euro or in the national currencies of the Member States which have notified their intention to extend the application of the Regulation to their national currency, in accordance with Article 14.

3. This Regulation does not apply to payments made by payment service providers for their own account or on behalf of other payment service providers.

4. Articles 6, 7 and 8 lay down rules regarding direct debit transactions denominated in euro between the payment service providers of the payee and of the payer.


Commission response

The Commission issued an explanatory press release, which welcomed the EP resolution:

European Commission welcomes the European Parliament’s adoption of two proposals in the area of payments (on e-money and cross-border payments) (24 April 2009; IP/09/637)


Final adoption

The new Regulation is now heading for final adoption by the Council and subsequent publication in the Official Journal of the European Union (OJEU).

Ralf Grahn