The Payment Services Directive explained

How will the Payment Services Directive affect you as a Business?

The Payment Services Directive (PSD) applies different rules for different sizes of business.

If your turnover is less than €2 million and employ less than 10 people, under the PSD your business will be categorised as a micro enterprise.

If you're an HSBC business banking customer, it's important to let us know if the turnover of your business and any associated businesses changes, so we can make sure the relevant sections of the PSD are applied. If you have a Relationship Manager, they will do this with you at your annual review, but if the financial situation of your business changes in the meantime, please get in touch.

How the Payment Services Directive will affect you:

The Payment Services Directive (PSD) recognises the need for your business to receive clear, open information about the charges and timescales surrounding the payments you make. When it comes into force on 1 November 2009, the PSD aims to introduce transparency and consistency for anyone making payments in Malta or across the European Economic Area (EEA).

What are the benefits of the PSD?

Under the PSD, banks and other providers of payment services across Europe must:

• Provide you with all the information you need when you make a payment, including clear information about rates and charges
• Offer a consistent level of service, such as making sure all payments are completed within a predetermined timeframe
• Protect customers across Europe when payments aren't executed correctly or authorised by the customer.

HSBC already meets or exceeds most of the standards set out in the legislation, which means you probably won't notice too many changes to your day-to-day business banking.

What kind of payments does the PSD apply to?

The PSD applies to most payment types, except paper-based payment instruments like cheques and bankers' drafts