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What does the new Act on Payments Services mean for you?
HSBC is prepared for a new era of European payments
At HSBC we are dedicated to deliver consistently high standards of service for all our customers. We want to ensure things as clear and straightforward as possible, so we welcome the EU initiative to harmonize payment services regulations across Europe. This brief guide will explain what kind of advantages and changes the Act brings to you and your business.
Answers to your questions
We want to make sure that you understand the changes and advantages which the new Act on payment services (hereinafter as the Act) will bring to you, and that’s why we have compiled this FAQ below.
1. What is the PSD and how is it connected with the Act?
The PSD (Payment Service Directive) is a new piece of EU legislation designed to harmonize the regulations related to payment services across Europe.
The PSD is applicable within the European Economic Area (the EEA) which comprises the 27 EU member states as well as Iceland, Norway and Liechtenstein.
Each EEA country shall implement the PSD into the national legislation. In the Slovak Republic the PSD will be implemented by the Act on Payment Services.
2. When does the Act come into force within the Slovak Republic?
The Act will come into force on 1st of December, 2009.
3. What is the aim of the new Act?
The Act aims to ensure that clients receive:
- all available information concerning execution of payments – including complete information on related charges and fees
- adequate level of service including checks on payment executions within maximum timeframes
- higher legal protection within Europe.
The Act is primarily aimed at consumers and small businesses. Corporate businesses, i.e. the companies with more than 10 employees and an annual turnover or a balance sheet total that exceeds 2 millions EUR, may find that some provisions of the Act are not entirely relevant to them.
4. What kind of changes can you expect from the Act?
As a HSBC business customer you may not notice significant changes, because in most instances HSBC already meets the standards set down by the Act. All relevant will be included in our updated Terms and Conditions for Corporate Clients which will be available on this site from 1st of December, 2009 . Updated Terms and Conditions will come into force on 1st of January, 2010.
5. Will my bank statements change?
There will be some minor changes to statements, for example the exchange rate will be added to transactions with currency conversion, but generally they will include the same information as nowadays.
6. Which institutions need to comply with the Act?
All institutions that provide payment services need to comply with the Act. This includes particularly banks, branches of the foreign banks, building societies as well as other institutions (for example money remitters that do not hold deposit accounts).
7. Does the Act apply only to payments that are made and received within the Slovak Republic or does it also apply to cross-border payments?
The Act applies to both domestic and cross-border payments. Most of all it concerns and regulates payments in which both the person sending the payment and the person receiving the payment reside within the EEA and the payment is made in one of the EEA currencies.
