What is the Payment Services Directive - and what does it mean for your personal banking payments?
The Payment Services Directive (PSD) is an EU initiative to make payment service rules consistent across Europe, whether you're making a payment in Malta or to another country in the European Economic Area (EEA). The PSD comes into force on 1 November 2009, but because HSBC already meets or exceeds the standards set out in the legislation, you probably won't notice too many changes to your day-to-day banking.
What are the benefits of the PSD?
The Payment Services Directive is all about clarity and consistency. 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.
What kind of payments does the PSD apply to?
The PSD applies to more or less all payments, except paper-based payment instruments like cheques and bankers' drafts. The PSD applies equally to transactions effected on your current, savings and cards-related accounts.
