PSD2 Q&As

What is an EU directive?

An EU directive is a type of law directed at the EU’s member countries. When a new directive is enacted, the member countries must adapt their laws according to the directive within a certain period of time. This is in contrast with an EU regulation, which directly has the force of law in all of the EU member countries. 

What is the purpose of the Payment Services Directive, PSD2?

The goal of the Payment Services Directive, PSD2, is to accelerate the pace of innovation, competition and security in the European account and payment services market. The lawmakers also hope that the Payment Services Directive will increase harmonisation of account and payment services within the EU. 

The biggest difference compared with previously is that third party providers will now have the ability to retrieve customers’ account information and make payments, provided that the customer has given its approval. In addition, the Payment Services Directive lays out requirements for:

  • Increased reporting of major incidents
  • Fraud monitoring
  • Faster handling of fraudulent and incorrect payments

 

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When does the Payment Services Directive, PSD2, take effect?

Large parts of the Payment Services Directive took effect already on 1 May 2018. However, the requirement to give third party providers the ability to retrieve account information and execute payments will not take effect until 14 September 2019.

What criteria must a company meet to be third party provider?

To be a third party provider within the framework of the Payment Services Directive, a company must apply with and be approved by its local regulatory authority. In Sweden this is Finansinspektionen (the Financial Supervisory Authority). 

To be approved, certain capital and insurance requirements must be met. If a company wants to do business in other EU countries than the one in which it was granted its licence, the company can apply for a licence through a simplified process with the national regulatory authority in that EU country.

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Can all companies access my account information as a result of the Payment Services Directive, PSD2?

No, you always need to give your approval for a company to gain access to your account information. Moreover, in order for you to be able to give your approval, the company must be approved by a European regulatory authority.

How do I know if a third party provider is trustworthy?

All companies that want to operate as a third party provider within the framework of the Payment Services Directive must first be approved by a regulatory authority in the EU/EEA. In Sweden this is authority is Finansinpektionen (the Financial Supervisory Authority). 

This licence can then be used throughout the EU if the third party provider completes a simplified application with the regulatory authority in the country that it wants to operate in.

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Which SEB accounts are covered by Payment Services Directive?

Only transaction accounts are covered by the directive, such as “Privatkonto”, “Företagskonto” and “Enkla sparkonto”.