The Payment Services Contract: PSD2 Requirements and PSD3 Perspectives

What is the payment services contract?

The payment service contract is the document that regulates the conditions for the provision of the payment service between the payment service provider and the user. This contract should be clear and transparent and should include at least the following elements:

What are the minimum requirements or elements of the payment services contract?

• Identification of the parties: The contract must identify the parties to the contract, including their name, surname, address, tax identification number and, where applicable, their bank account number.
• Object of the contract: The contract should state the object of the contract, which is the provision of the payment service.
• Duration of the contract: The contract must indicate the duration of the contract, which may be indefinite or fixed-term.
• Price of the service: The contract must indicate the price of the service, which can be fixed or variable.
• Payment terms: The contract should indicate the terms of payment for the service, such as payment term and handling charges.
• Obligations of the payment service provider: The contract should indicate the payment service provider’s obligations, such as service provision, data security and complaint resolution.
• User obligations: The contract should indicate the user’s obligations, such as identification and authentication, information about the transaction and acceptance of the risks associated with the service.
• Remedies in the event of a dispute: The contract should indicate the remedies available to the parties in the event of a dispute, such as mediation or arbitration.

Unfortunately, this quiz has a limited amount of entries it can recieve and has already reached that limit.

Time's up

Other clauses or elements to be contained in the payment services contract

In addition to these elements, the payment services contract may include other elements, such as the following:

• Terms of use of the service: The contract may include terms of use of the service, which regulate the use of the service by the user.
• Limitations of liability: The contract may include limitations of liability of the payment service provider, which exempt the payment service provider from liability for damages caused by the service.
• Termination clauses: The contract may include termination clauses, which allow the parties to terminate the contract in certain circumstances.

The payment service provider must provide the user with a copy of the payment service contract before the user is bound by the contract. The user should read the contract carefully before signing it.

How might the current draft of the PSD3 Directive affect the payment services contract?

• New obligations for payment service providers:

The draft PSD3 Directive introduces a number of new obligations for payment service providers, such as the obligation to offer account access services, the obligation to provide information on payment history and the obligation to offer chargebacks. These new obligations may lead to changes in payment service contracts, as payment service providers will have to include clauses regulating compliance with these new obligations.

• New options for users:

The draft PSD3 Directive offers users new options, such as the option to choose their own account access service provider and the option to request chargebacks. These new options may lead to changes in payment service contracts, as payment service providers will have to include clauses regulating these new options.

• Greater transparency:

The draft PSD3 Directive requires greater transparency in payment service contracts, including the obligation to provide clear and concise information on the costs of the service, the characteristics of the service and the rights and obligations of the parties. This increased transparency may lead to changes in payment service contracts, as payment service providers will have to include clauses that comply with these new transparency requirements.

New clauses arising from the eventual implementation of the Draft PSD3 Directive

In particular, changes that may occur in payment services contracts include:

• Inclusion of new clauses:

Payment service providers will have to include clauses regulating compliance with the new obligations imposed on them by the PSD3 Directive. For example, payment service providers should include:

• • Clauses governing the provision of account access services,
  • Clauses governing payment history information
  • Clauses governing chargebacks.

Si te ha interesado este artículo no dudes en leer:

How do ICOs and STOs work in corporate finance?

ICOs (Initial Coin Offerings) and STOs (Security Token Offerings) are two methods of raising capital in the world of cryptocurrencies and blockchain technology.

Modification or adaptation of existing clauses in view of the possible implementation of the PSD3 Draft Directive

• Changes to existing clauses:

Payment service providers may have to modify existing clauses to comply with the new transparency requirements. For example, payment service providers will have to provide clearer and more concise information on the costs of the service, the characteristics of the service and the rights and obligations of the parties.

• • A breakdown of the costs of the service, e.g. the price of the service, the management fees and the costs of the payment network.
  • An explanation of how the costs of the service will be calculated, e.g. the calculation of the price of the service per transaction or the calculation of the management fees per month.
  • An indication of whether the costs of the service are fixed or variable.

• New conditions:

Payment service providers may introduce new conditions in payment service contracts, such as conditions allowing users to choose their own account access service provider or conditions allowing users to request chargebacks.

The choice of account access service provider clause may include other information such as:

• • The procedure to be followed by the user to choose his own account access service provider.
  • The information to be provided by the payment service provider to the user on account access service providers that comply with the requirements set out in the PSD3 Directive.

The chargeback clause may include other information, such as:

• • The criteria to be used to determine whether a charge is undue or excessive.
  • The procedure to be followed by the user to request a chargeback.

Payment service providers should review their payment service contracts to identify changes that are necessary to comply with the draft PSD3 Directive.

If you enjoyed this article, you may also find it interesting to read the following one:

Legal Aspects of Smart Contracts and Regulation in Spain