Payment Services Directive

The Payment Services Directive (PSD, 2007/64/EC) is an EU Directive, administered by the European Commission (Directorate General Internal Market) to regulate payment services and payment service providers throughout the European Union (EU) and European Economic Area (EEA). The Directive's purpose was to increase pan-European competition and participation in the payments industry also from non-banks, and to provide for a level playing field by harmonizing consumer protection and the rights and obligations for payment providers and users.

The SEPA (Single Euro Payments Area) is a self-regulatory initiative by the European banking sector represented in the European Payments Council, which defines the harmonization of payment products, infrastructures and technical standards (Rulebooks for Credit Transfer/Direct Debit, BIC, IBAN, ISO 20022 XML message format, EMV chip cards/terminals). The PSD provides the legal framework within all payment service providers must operate.

The PSD's purpose in regard to the payments industry was to increase pan-European competition with participation also from non-banks, and to provide for a level playing field by harmonizing consumer protection and the rights and obligations for payment providers and users. The PSD's purpose in regard to consumers was to increase customer rights, guarantee faster payments, no later than next day from 1 January 2012 on, describe refund rights, give clearer information on payments. Although the PSD is a maximum harmonisation Directive, certain elements allow for different options by individual countries.

The final adopted text of PSD went into force 25 December 2007 and was to be transposed into national legislation by all EU and EEA member states by 1 November 2009 at the latest.

...
Wikipedia