The Law of Payment Services in the EU: The EC Directive on Payment Services in the Internal Market

The role that payments play within the general framework of financial services in the EC is indispensable for the realization of a true single European market including, inter alia, the conditions of cross-border purchasing, the legal framework of consumer protection, and the technical standards against fraud in payment systems. The Commission’s New Legal Framework for payment services in the internal market – as evidenced by the EC Payment Services Directive (PSD) – represents an important step towards the completion of an initiative for a Single Euro Payments Area and, more broadly, EU-wide financial services integration. Yet, while wholesale financial services and, in particular, wholesale payment services have been extensively regulated, much work remains to be done in the sector of retail financial services, an area directly affecting consumers and small enterprises. Using a dual focus on the historical development of EC financial services law and current trends in this highly evolving sector, this important book masterfully reveals and delimits the legal aspects of payments within the European Union and analyses the different legislative approaches to harmonization in financial services. The author shows that, despite the inherent sensitivity of the financial services sector and the rapid technological developments, a centralized EC initiative for payment services has the potential to bring about tangible results in terms of consumer protection and further EC integration. In the course of her in-depth treatment, the author explores the following such elements as they relate to payment services:

• the case law of the ECJ on the meaning of payments and capital;

• theories of minimum versus maximum harmonization in financial services;

• the application of mutual recognition and home country control;

• the comitology procedure;

• the principle of subsidiarity in the context of financial services legislation;

• authorization requirements for payment institutions;

• supervision of the payment institutions;

• liability for losses from unauthorized transactions;

• liability for non-execution or defective execution of a payment transaction;

• revocability and irrevocability of a payment order;

• varying levels of consumer protection in payment services; and

• transparency and liability issues under the PSD.

As the EU continues to experience increasing pressure and incentives to evaluate the existing legal framework affecting payments across its Member States, this book’s clear analysis of the complex legal framework, as well as its informed perspectives on future prospects, will greatly facilitate the advancement of legal scholarship in the area. The book is well worth the attention of banking professionals, business people and other interested parties.