what is the PSD2?
It is Directive (EU) 2015/2366 of the European Parliament and of the Council on payment services in the internal market. The provisions of the Directive will enter into force at two dates: on 13 January 2018 and, following a transitional period, on 1 January 2019 in Hungary, in advance of other European countries.
what is the purpose of PSD2 in the field of payment services?
to standardise the regulation of payment services across all the countries of the European Economic Area (EEA)
to ensure a high level of consumer protection
to encourage innovation and boost competition on the market
to guarantee transparency and security
to regulate the new types of payment services and the payment service providers offering them.
the key changes in PSD2 entering into force on 13 January 2018:
- changes affecting debit and credit cards:
- blocking a bankcard will now be free of charge
- the Bank now offers its clients a new dedicated telephone line for requesting bankcard blocking; calls to this number (+36 80 414 243) are free of charge from Hungary as well as abroad.
- in the event of bankcard fraud, the limit on the card-related account holder clients’ liability for losses is reduced from HUF 45 000 to HUF 15 000 for payments not authorised by the cardholder and executed until the time of reporting the fraud
- cardholders can now terminate their bankcard agreements free of charge after 6 months as opposed to the earlier limit of 12 months
- there will be no fee for blocking a credit card
- changes to cost options on foreign currency transfers – standard terms:
In the future, orders for foreign currency transfers, in any currency, within the European Economic Area must always have a cost option of ‘shared’ (SHA). This means that (for example with a USD transfer to Austria) each party will pay the costs incurred at their own bank in the future, as is already the practice in the case of EUR payments. Please note that when you submit a foreign currency transfer order in K&H e-bank to a country within the EEA, you will have to select the option “SHA / K&H bank’s charges payable by sender, other bank’s charges payable by beneficiary”.
- faster execution of foreign currency transfer orders:
As a general rule, all domestic and international foreign currency transfer orders submitted in an electronic channel must be executed uniformly – irrespective of the currency and conversion – within 1 working day of submission, while the deadline will remain unchanged at 2 working days for orders submitted on paper.
- changes to fees for closing bank accounts:
In the past, Account Servicing Payment Service Providers (ASPS, further on: account servicing bank) were allowed to charge a fee for closing the account if an account holder requested the termination of their account within 12 months of its opening. From 13 January 2018, this period will be reduced to 6 months, so that account holders can now request the closure of their accounts free of charge from the 7th month after the accounts are opened.
- the emergence of new payment service providers and services:
- “Payment initiation services”: this serves the purpose of initiating, at the client’s request, a payment order from the client’s account held with their account managing payment service provider (their bank)
- “Account information services”: this serves the purpose of providing consolidated information on one or more accounts of the client (even if held with different account managing banks)
- “Card issuer payment services”: a different service provider issuing a card associated with the client’s account managed by their bank
The new service providers may provide these new types of services only if instructed to do so by the client.
the key changes in PSD2 entering into force on 1 January 2019:
PSD2 requires the creation of secure communication channels between the account servicing banks and the payment service providers offering the new services and expects the new service providers to send their identification details to the account servicing banks via these secure channels.
After a period of transition, these security rules will have to be complied with by 1 January 2019 at the latest in Hungary.
using these new types of services in the transitional period (between 13 January 2018 and 1 January 2019):
In the transitional period, the new service providers will be able to access clients’ accounts based on clients’ instructions, using what is referred to as the “direct access” technique.
Direct access means that the payment service provider requests the client to disclose the identifier code provided to them by their bank and their personal authentication details, and uses this information to log on to the bank’s system; as a result, the payment service provider will:
- use the same electronic banking platform and banking service as the client
- be able to access all the data and information displayed by the account managing bank for the client in the electronic channel; this represents access to a wider range of data than will be permitted by the law after 1 January 2019
Please note that, throughout the entire transitional period, clients will be liable for all losses incurred on their payment accounts due to any mismanagement or abuse of their data by a new service provider.
If you use such services, please make sure you are especially careful when you disclose your personal data and banking identifiers.
In order to reflect the changes in the law, K&H Bank has updated its General Contract Terms and Conditions and its Announcements, which are available to view in the Bank’s branches and on its website.