The European Commission adopted its proposal for both the proposed Directive on payment services in the internal market (PSD2) and the proposed Regulation on multilateral interchange fees for card-based payment transactions (MIF Regulation) in July 2013. The European Parliament’s Committee on Economic and Monetary Affairs (ECON) proposed amendments for PSD2 and the MIF Regulation (ECON report on PSD2 & ECON report on MIF Regulation) were considered at the European Parliament’s plenary session on 2 - 3 April 2014, and on 3 April 2014 the Parliament published a press release announcing that in the plenary session it voted on the proposed PSD2 and the proposed MIF Regulation.
On 4 April 2014, the European Parliament published a document that contains the texts of amendments to PSD2 and the MIF Regulation that it adopted at its plenary session.
What this means for you
It will be interesting to observe the industry’s reaction to the Parliament’s amendments. The European Banking Federation (EBF - made up of 32 national banking association members from Europe) stated in a prompt Press Release on 3 April 2014, that in its view, the payment package still needs further work.
The EBF believes that some aspects on access to consumer on-line accounts by third-party providers, remain to be addressed and in relation to the MIF Regulation, the EBF believes the proposal by the parliament to further lower the cap that was initially proposed by the Commission, would have a significant impact as banks may be forced to pass on payment costs directly to consumers in other ways.
Fiona Ghosh, a partner and retail payments specialist at Eversheds LLP, has assessed ECON’s amendments in the following article.
The Parliament’s press release states that the Parliament voted on its amendments to the draft rules in order to consolidate the work done so far and hand it over to the next Parliament. It explains that this ensures that the MEPs newly elected in May 2014 can decide not to start from scratch, but instead build on work done during the current term.