Issues with Transfers

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 service provider must make the following available, a reference enabling the transaction to be identified, information regarding the payee, amount of the payment, currency, charges exchange rate and the credit value date. Money laundering and terrorism financing obligations may also apply.

A payment transaction is authorised only if the payer consents.  Consent can be agreed in advance. A payment limit may be specified.  A payment service user is entitled to correction by the provider of an unauthorised or incorrectly executed transaction provided he notifies the payment service provider without undue delay or no later than 12 months after the date of the direct debit unless the payment service provider is obliged to provide or make available information on the transaction and has failed to do so.

Blocking of Payment

In a case of payment instruction with a significant risk that the payer may be unable to fulfill obligations, the payment service provider must provide the payer with details of the blocking of the payment and reasons if possible, before payment is blocked and at the latest immediately after blocking unless this would compromise security or is prohibited.  The payment must be unblocked, once the reasons are blocking no longer apply.

A user must use a payment instrument in accordance with the terms governing its issue and use.  The user must notify the provider that the instrument or entity specified without undue delay, of loss, theft, misappropriation of the payment instrument or unauthorised the use. He must take all reasonable steps to keep personalised security features safe.  The provider must ensure that security features are not accessible to anyone other than the user. He must not send unsolicited payment instruments to the payer unless the payment instrument already given by the same payment service user is to be replaced.

Unauthorised Payments

The payments service provider must ensure the security systems are not accessible. It must ensure that appropriate means are available to provide notification of the loss, theft, misappropriation of the instrument. It must prevent use, once notification has been given.  The provider bears the risk of sending the instrument to the payer and that of sending personalised security feature.

If the user denies the transaction was authorised the payment service provider must prove it was authenticated, recorded and entered.  If the user denies authorising the transaction there are certain presumptions  The use of a permanent payment instruction recorded by the provider is not necessarily sufficient to prove the payment was authorised or the payer acted fraudulently or intentionally failed to fulfill his obligations.  The service provider must refund the payer the amount of the unauthorized transaction.

A payer is responsible for unauthorised payments on his account up to €75, if the loss arises from use of a lost or stolen payment instrument, the payer has failed to keep a payment instrument’s personal details safe or the misappropriation of a personalised security feature of the instrument. The payer bears the loss resulting from an unauthorised payment if it is incurred as a result of his acting fraudulently, failing intentionally or by gross negligence to fulfill his obligations in respect of the instrument.

Denial of Authorisation

A payment service user may rectify an unauthorised or incorrect transaction giving rise to a claim if he notifies the claim without undue delay and within no later than 13 months, unless the payment service provider fails to provide the information above.

If the customer denies authorisation of the transaction or claims that it has not been properly executed, the payment service provider must prove that it was authenticated accurately, recorded, entered in the accounts and not affected by breakdown or other error. The mere use of the payment instrument recorded by the payment service provider is not necessarily proof of authorisation or that the payer acted fraudulently, intentionally or has acted with gross negligence to fulfill obligations his obligations as the payer.

If an unauthorised payment transaction has taken place, the service provider shall, if notice is given, refund the payer immediately, the amount of the transaction. This does not affect any other right which the payer may have to compensation. This obligation does not apply to electronic money, if the payment service provider cannot freeze the payment account or block the payment instrument.

The payer bears the loss of an unauthorised payment transaction up to €75 if he has failed to keep personalised security features safe or in the event of misappropriation. The payer bears all the loss of an unauthorised payment if he or she incurred them by acting fraudulently or failing intentionally or by acting with gross negligence to fulfil his obligations.

A payer does not bear the financial consequences resulting from a lost, stolen, or misappropriated payment instrument, after giving notice in accordance with the above obligations, unless he has acted fraudulently.

Repayment

A payer is entitled to a refund from a payment service provider in respect of a direct debit, if authorisation did not specify the exact amount of the payment transaction when the authorisation was made and the amount of the transaction exceeded the amount the payer could reasonably have expected, taking into account his or her previous spending patterns, conditions of the contract and circumstances. The payer shall provide factual information in relation to the circumstances.

It may be agreed in the provider’s framework contract that there is no right to repayment where the payer has consented to the execution of the transaction in advance and the payment service provider or payee concerned made available to the payer, information in the agreed manner at least four weeks before the date.

A refund under the above provisions may be requested within eight weeks after the date the accounts were debited. The refund shall be made within 10 days of the request, unless it provides reasons for the refusal and contact details for the bank and Financial Services Ombudsman.

A payment service provider is not liable in abnormal and unforeseeable circumstances beyond its control, the consequences of which have been unavoidable despite all efforts to the contrary. It is not liable in relation to matters that arise from other legal obligations. Nothing in the regulations, prevent other rights of compensation from arising.

Execution of Payment Order

The time for receipt of the payment order by a payment service provider is when it is received by the provider. If it is not on a business day, it is taken to be received on the next business day. The payment service provider may provide a cut-off time near the end of a business day, beyond which any payment order is taken to be received on the next business day.

If a payment service provider refuses to execute a payment order it shall provide the user with notice of the refusal and if possible, the reasons and procedure for correcting any factual mistakes, unless prohibited by law. The notice shall be given at the earliest opportunity. It is permissible to charge for such notification if the refusal is objectively justified.

A payment service provider shall not refuse to execute an order where the conditions set out in the contract are met, regardless of whether initiated by the payer or payee. A payment services user may not revoke an order after receipt by the service provider, subject to the following exceptions.

Except if initiated by the payee, may not revoke the order after transmitting it or giving the payee consent to execution. In the case of direct debit, the payer may revoke the payment until the end of the business day before the day agreed for debiting funds. The user may revoke the payment order until the end of the business day before the agreed day, where an agreed day applies.

The full amount to be transferred must be transferred. The amount transferred shall be the full amount without deduction of charges from the amount transferred. However, it may be agreed charge may be deducted from the amount transferred before crediting to the payee. This must be previously shown in the information given to the payee.

Incorporate Clauses 84 to 92 of Statutory Instruction Payment Service.