{"id":578,"date":"2021-06-10T07:21:11","date_gmt":"2021-06-10T07:21:11","guid":{"rendered":"http:\/\/legalblog.ie\/?p=578"},"modified":"2021-06-10T20:53:23","modified_gmt":"2021-06-10T20:53:23","slug":"payments-systems","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/payments-systems\/","title":{"rendered":"Payments Systems"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/payments-systems\/#Payments_and_Funds_Transfer\" title=\"Payments and Funds Transfer\">Payments and Funds Transfer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/payments-systems\/#Payment_System_Operators\" title=\"Payment System Operators\">Payment System Operators<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/payments-systems\/#Direct_Debit_System\" title=\"Direct Debit System\">Direct Debit System<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/payments-systems\/#Paying_Bank_with_Direct_Debits\" title=\"Paying Bank with Direct Debits\">Paying Bank with Direct Debits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/payments-systems\/#European_Harmonisation\" title=\"European Harmonisation\">European Harmonisation<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Payments_and_Funds_Transfer\"><\/span>Payments and Funds Transfer<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>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.<\/p>\n<p>A payment will involve an instruction by or on behalf of the payer to its credit institution to make payment to the payee or his account at his credit institution. The instruction may be in writing or in electronic form. \u00a0There may be a collection of the payment by way of the presentation of a cheque. Alternatively, there may be a direct transfer of funds from the payer\u2019s account at one institution to the payee\u2019s account at another institution. The payer may be the payee.<\/p>\n<p>A number of companies in Ireland operate various payment systems. The payment systems are regulated under common EU wide Regulations. The payment systems process, confirm and settle payments.\u00a0 The payment or clearing systems provide a means of transferring instructions and settling accounts.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Payment_System_Operators\"><\/span>Payment System Operators<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Irish Payment Clearing Company Limited (\u201cIPCC\u201d) comprises eight member banks. \u00a0It is responsible for the clearing mechanism between banks and enables paper debits to be exchanged within the State.\u00a0 It provides and updates the rules and standards for the system.<\/p>\n<p>The Irish Retail Electronic Payment Clearing Company (\u201cIREPCC\u201d) is responsible for payment and clearance of electronic items between banks, \u00a0financial institutions and certain other approved originators.\u00a0 The system enables credit and debits to be originated and paid to and from each bank and its branches in the State. The IREPCC applies and develops the rules for the administration of the electronic clearance system. It ceased operations in 2014 with the migration to SEPA.<\/p>\n<p>Laser Card Services Ltd was established by the main financial institutions to maintain and operate the debit card payment system.\u00a0 The company controls the marketing administration, product development and strategic elements of the scheme. \u00a0IPSO Card Services Limited was established to examine security and fraud affecting card payments as well as monitoring legal and regulatory changes. Laser Card Systems Limited ceased operations in 2014 with the migration to SEPA.<\/p>\n<p>Standard electronic payments provide clearance for next day value for interbank transfers, provided that the payment is received ahead of the cut off time.\u00a0 Most banks offer same-day value to account holders in the same bank.\u00a0 Funds will not be transferred unless sufficient funds are in place.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Direct_Debit_System\"><\/span>Direct Debit System<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The direct debit scheme in Ireland is managed by the IREPCC. The scheme involves the originator, sponsoring banks and the paying bank. It has over 4,000 originators who may collect direct debits.\u00a0 \u00a0\u00a0The IREPCC seeks to ensure that the scheme offers a high standard of efficiency, trust and integrity. It issues originator identification numbers and maintains and updates databases. It resolves complaints and disputes. It provides a dispute resolutions forum for disputes between banks or originators arising from alleged non-compliance and breach of the scheme rules.<\/p>\n<p>An originator is a body authorised to collect direct debits.\u00a0 It is usually a utility company or other large scale institution.\u00a0 The direct debit allows collection of variable amounts from the account of the payer.\u00a0 Once the relevant instruction is given to the originator, the payer takes no further action.\u00a0 The originator informs the payer in advance, of the amount and date of collection. \u00a0The minimum notice is 14 days unless a shorter period is agreed upon.<\/p>\n<p>The originator forwards the direct debit electronically to the payer\u2019s bank for collection from his account.\u00a0 The payer can amend the direct debit at any time by informing his bank. \u00a0It should also inform the originator.\u00a0 Once cancelled, no further collections are permitted.\u00a0 Originators must ensure correct advance notice is given to their customers. They must ensure the reference field is populated with the relevant information and that the correct transaction codes are provided.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Paying_Bank_with_Direct_Debits\"><\/span>Paying Bank with Direct Debits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Paying banks must only pay debits in accordance with the relevant instruction.\u00a0 They must ensure disputed amounts are not debited, that all amendments and cancellations are actioned promptly and that the scheme rules are adhered to.\u00a0 They must ensure that unauthorised and cancelled direct debits are intercepted and returned immediately on presentation. They must assist customers in resolving disputes. They must inform the sponsoring body if the originator is not adhering to the rules.<\/p>\n<p>The payer is entitled to prompt repayment if an unauthorised direct debit is charged.\u00a0 The payer must notify the bank without undue delay on becoming aware of such a charge and in any event within 13 months. The payer is entitled to request a refund of variable direct debit exceeding the amount reasonably expected, subject to requesting the bank, within a period of eight weeks from the date of such debiting. The payer may instruct it bank to refuse a direct payment by giving notice and cancelling the direct debit in good time.<\/p>\n<p>Paying banks must refund customers for indemnity claims and present the indemnity to the originator. They must settle <u>\u00a0indemnity claims <\/u>\u00a0within 10 days<\/p>\n<h3><span class=\"ez-toc-section\" id=\"European_Harmonisation\"><\/span>European Harmonisation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The European Payment Services Directive provides a common legal framework for payments throughout the EU. It provides for harmonised consumer protection rules and minimum standards.\u00a0 The rights and obligations of payment service providers as regards each other and customers and banks are stipulated. The information to be provided to customers is specified.\u00a0 Electronic payments are standardised across Europe. The Single Euro Payment Area offers credit transfers within the Euro area.<\/p>\n<p>Payment service providers in Ireland are regulated by the Central Bank under a common EU wide basis.\u00a0 Payment service providers must have minimum capital and are subject to detailed authorisation requirements.\u00a0 The framework contract and its rules must be approved. Parties to a framework contract may provide that particular parts do not apply to the transaction if the payment service is not used by a consumer.<\/p>\n<p>Before a payment service user is bound by a framework contract, certain information must be given to him or her in durable form. This includes a statement of the key terms and conditions. The contract may be terminated provided that a period of not more than a month\u2019s notice is given.<\/p>\n<p>Before providing a payment service, certain information must be provided in advance to the user.\u00a0 This includes a special unique identifier, maximum execution time, charges payable, statement of breakdown, currency and the actual exchange rate.\u00a0 After a payment order is received, the provider must make information available to the payer including a reference to identify the transaction, the amount of charges, exchange rate and date of receipt.<\/p>\n<p>Certain information is required before the execution of individual payment transactions, both to the payer and to the payee. There are exclusions for low-value payments.\u00a0 Information must be given in an easily accessible manner, in understandable words and in a clear and comprehensible form. All charges are to be disclosed at the point of execution.\u00a0 \u00a0Charges should be agreed upon with the service provider in line with the service provider\u2019s actual costs.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-578\" data-postid=\"578\" class=\"themify_builder_content themify_builder_content-578 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/578"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=578"}],"version-history":[{"count":3,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/578\/revisions"}],"predecessor-version":[{"id":581,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/578\/revisions\/581"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}