Overview The Single Euro Payments Area (SEPA) seeks to integrate payment services in the EU. It simplifies bank transfers in Europe. SEPA consist of the 28 EU states and the 4 EFTA members, Iceland, Liechtenstein, Norway and Switzerland. It also comprises Monaco and San Marino. SEPA seeks to improve the efficiency of payments cross-border and create a single payments area. It enables cashless euro payments […]
Payment Scheme Requirements The SEPA Regulation require that a payee’s payment service provider, which is reachable for a national credit transfer under the payment scheme, must be reachable in accordance with the rules of an EU-wide payment scheme for credit transfers initiated by a payer to a payment service provider located in any State. A payer’s payment service provider which is reachable for a national […]
Revised rules for payment services in the EU Directive (EU) 2015/2366 on EU-wide payment services Directive (EU) 2015/2366 (Payment Service Directive 2 — PSD 2) provides the legal foundation for the further development of a better integrated internal market for electronic payments within the EU. It puts in place comprehensive rules for payment services*, with the goal of making international payments (within the EU) as […]
Systemically important payment systems (SIPS) Regulation (EU) No 795/2014 on oversight requirements for systemically important payment systems (ECB/2014/28) Decision (EU) 2019/1349 on the procedure and conditions for exercise by a competent authority of certain powers in relation to oversight of systemically important payment systems (ECB/2019/25) Decision (EU) 2017/2098 on procedural aspects concerning the imposition of corrective measures for non-compliance with Regulation (EU) No 795/2014 (ECB/2017/33) […]
Traceability of money transfers Regulation (EU) 2015/847 on information accompanying transfers of funds It sets out rules on the information on payers* and payees*, accompanying transfers of funds*, in order to help prevent, detect and investigate money laundering and terrorist financing*. European Union (EU) rules in this area are largely based on international recommendations adopted by the Financial Action Task Force (FATF)*. Key Points As […]
Cross-border payments in euros The aim of the single euro payments area (SEPA) is to ensure that making electronic payments throughout the entire euro area is as easy as making cash payments and that there are no extra charges when making an electronic payment in euros in another European (EU) country. Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16 […]
IFS Coinage The Coinage Act 1926 provided for the issue of Irish Free State coinage. This ultimately supplanted United Kingdom coinage. The Irish coinage remained of the same size and dimension as UK coins, and was exchangeable at par until 1979. United Kingdom coins were widely accepted as currency until that date. The Act provided that the Minister for Finance might issue silver half crowns, […]
Nature Money serves as a medium of exchange. It is a key characteristic of money that it is accepted in settlement of debts, without question. It serves as a standard for value by reference to which, the comparative value of goods may be measured. It is a unit of account in which debts and liabilities are expressed. It is a store of purchasing power. The […]
Payments and Funds Transfer This chapter deals with the making and collection of payments through the financial system. There are a number of different payment and clearance mechanisms. Different mechanisms or systems operate in relation to the various means of payment. The payments may be by cheque, direct transfer, ATM, standing order, direct debit, debit card credit card or through another means of funds transfer. […]
Payment Authorisation A payment without consent is unauthorised. The procedure for the provision of consent is to be agreed upon between the payer and the payment service. The payer may withdraw consent at any time before it becomes irrevocable. The payment service provider may block payment for objective reasons related to security suspicion of unauthorised or fraudulent use. After the execution of the payment, the […]
Funds Transfers A funds transfer is a direction by the customer to the bank to make the requisite transfer. The legal position depends on the underlying contract, as well as the mandatory terms protective of consumers in the Payment Services Regulations. The credit institution is obliged obey the payer’s proper instructions. They must act with reasonable care and skill in relation to any order or […]
Credit Card Transactions A credit card transaction involves three parties. There is a contract between the retailer/supplier and the cardholder. This is effectively, the underlying sale. There is a contract between the supplier/retailer and the card-issuing company which undertakes to honour the card by playing the supplier on presentation of sales vouchers and proof of sales. There is a contract between the card-issuing company and […]
Payments Market Framework An EU directive aims to establish a framework for the creation of an integrated payments market. It covers payment service providers established in the EU. It covers payments in euro and other national currencies of the EU. It does not apply to cash or cheque payments. The directive establishes a number of categories of payment service provider. These include Credit institutions, i.e., […]