On 1 November 2009 the EU Payment Services Directive (PSD1) was implemented with the aim to create a single market for payments in the European Union - making cross-border payments as easy, inexpensive and secure as domestic payments.
As the digital economy developed, new services that lay outside of the scope of PSD1 began to appear. To address this, Payment Services Directive II was introduced on 13 January 2018 and was incorporated in Greek legislation via Law 4537/2018 (PSD2).
What are the benefits of PSD?
The Payment Services Directive is all about clarity and consistency. Under 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 PSD2 apply to?
PSD2 applies to more or less all payments, except paper-based payment instruments like cheques and bankers' drafts. PSD2 applies equally to transactions effected on your current, savings and cards-related accounts.