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UK Statutory Instrument
2017
United Kingdom
Payment Services Regulations 2017
At a glance
Who this Act binds
Business-side actors with duties under this Act, ranked by how often they appear.
- Operator 41
- Any Person 16
- Applicant 7
- Director or Officer 4
- Trader 4
Plus 11 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
Step-by-step journeys using this legislation
Walkthroughs that take you from a real business situation to compliance.
Relevant guidance
Practical guides for businesses affected by this Act, ordered by how closely they engage with it.
Direct — cites this Act
2 guidesSupporting — topic alignment
2 guidesOther Acts binding the same actors
For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.
Operators also bound by 125 other Acts (top 5 shown)
- Space Industry Regulations 2021 2021 71 duties
- Air Navigation Order 2016 2016 34 duties
- The Quarries Regulations 1999 1999 31 duties
- Reservoirs Act (Northern Ireland) 2015 2015 22 duties
- Reservoirs (Scotland) Act 2011 2011 21 duties
Any Person also bound by 749 other Acts (top 5 shown)
- Human Medicines Regulations 2012 2012 110 duties
- Licensing Act 2003 2003 105 duties
- Merchant Shipping Act 1995 1995 97 duties
- Road Traffic Act 1988 1988 95 duties
- Air Navigation Order 2016 2016 86 duties
Applicants also bound by 146 other Acts (top 5 shown)
- Insolvency (England and Wales) Rules 2016 2016 22 duties
- Human Medicines Regulations 2012 2012 20 duties
- Value Added Tax Regulations 1995 1995 20 duties
- Space Industry Regulations 2021 2021 12 duties
- Infrastructure Planning (Environmental Impact Assessment) Regulations 2017 2017 10 duties
Directors and Officers also bound by 224 other Acts (top 5 shown)
- Insolvency (England and Wales) Rules 2016 2016 75 duties
- Companies Act 2006 2006 63 duties
- Insolvency Act 1986 1986 46 duties
- CCBSA 2014 2014 22 duties
- CAICEA 2004 2004 18 duties
Traders also bound by 219 other Acts (top 5 shown)
- Value Added Tax Regulations 1995 1995 952 duties
- TULRCA 1992 1992 39 duties
- Companies Act 2006 2006 39 duties
- Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 2013 39 duties
- The Customs (Import Duty) (EU Exit) Regulations 2018 2018 33 duties
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Part 1 — Introductory provisions
Browse 1 other section in this Part — procedural / definitional / commencement
Interpretation
Part 2 — Registration
Application for authorisation as a payment institution or variation of an existing authorisation
- Apply for or vary payment institution authorisation Applicant
Conditions for authorisation as a payment institution
- Meet eligibility conditions for payment institution authorisation Applicant
Request for cancellation of authorisation
- Follow FCA directions when requesting to cancel your authorisation Any Person
Variation of authorisation on FCA's own initiative
Other duties (1) — Crown / regulator
- FCA may change your business authorisation on its own initiative Statutory regulator
Application for registration as a small payment institution or variation of an existing registration
- Register as a small payment institution or vary your registration Applicant
Conditions for registration as a small payment institution
- Meet eligibility criteria to register as a Small Payment Institution Applicant
Application for authorisation or registration if requirements cease to be met
- Apply for new authorisation if registration requirements are no longer met Any Person
Application for registration as an account information service provider or variation of an existing registration
- Apply to the FCA for AISP registration or to vary an existing one Applicant
Conditions for registration as an account information service provider
- Meet requirements for registration as an account information service provider Applicant
Duty to notify changes
- Notify the FCA of changes to your payment service application Applicant
Authorised payment institutions, small payment institutions and registered account information service providers acting without permission
Unlimited fine- Carry out unauthorised payment services Any Person
Browse 4 other sections in this Part — procedural / definitional / commencement
Imposition of requirements
Cancellation of authorisation
Supplementary provisions
Supplementary provisions
Part 3 — Authorised Payment Institutions
Capital requirements
- Maintain minimum capital and own funds levels Director or Officer
Accounting and statutory audit
- Maintain separate accounts for payment services Any Person
Outsourcing
- Notify the FCA before outsourcing operational functions Director or Officer
Browse 7 other sections in this Part — procedural / definitional / commencement
Safeguarding requirements
Application of regulations 27 to 30 to account information service providers
Notice of intention
Decision following notice of intention
Notice of intention from an EEA authorised payment institution
Supervision of firms exercising passport rights
Insolvency Regulations
Part 4 — Provisions Applicable to Authorised Payment Institutions and Small Payment Institutions
Record keeping
- Keep payment service compliance records for five years Any Person
Additional activities
- Follow strict conditions if providing credit with payment services Director or Officer
Payment accounts and sums received for the execution of payment transactions
- Use payment accounts only for payment transactions Any Person
Use of agents
- Register agents with the FCA before providing payment services Operator
Duty to notify change in circumstance
- Notify the FCA of significant changes in your business circumstances Operator
Browse 2 other sections in this Part — procedural / definitional / commencement
Removal of agent from register
Reliance
Part 5 — Requirements for providers of certain services which are not payment services
Notification of use of limited network exclusion
- Notify the FCA if your limited network payment transactions exceed €1 million Operator
Notification of use of electronic communications exclusion
- Notify the FCA before providing certain electronic payment services Operator
Part 6 — Information Requirements for Payment Services
Information required prior to the conclusion of a single payment service contract
- Provide specific information before single payment service contracts Operator
Information required after the initiation of a payment order
Unlimited fine- Provide payment transaction details to customers and account providers Operator
Information required after receipt of the payment order
- Provide transaction details to payers after receiving a payment order Operator
Information for the payee after execution
- Provide transaction details to payees after receiving funds Operator
Prior general information for framework contracts
Unlimited fine- Provide customers with contract information before they are bound Operator
Information during period of contract
- Provide contract terms and information to customers upon request Operator
Changes in contractual information
- Give customers two months' notice of contract or information changes Operator
Termination of framework contract
- Manage notice periods and fees for terminating payment service contracts Operator
Information prior to execution of individual payment transaction
Unlimited fine- Provide transaction details to customers upon request Operator
Information for the payer on individual payment transactions
- Provide transaction statements to customers at least monthly Operator
Information for the payee on individual payment transactions
- Provide monthly transaction information to payment recipients Operator
Communication of information
- Use clear and accessible language for payment service communications Trader
Currency and currency conversion
Unlimited fine- Use agreed currency and disclose conversion charges and rates Trader
Information on additional charges or reductions
- Disclose payment fees or discounts before a transaction starts Trader
Information requirements for account information service providers
- Provide mandatory service and fee information to customers Operator
Information on ATM withdrawal charges
- Provide clear information on ATM withdrawal charges Trader
Provision of information leaflet
Other duties (1) — Crown / regulator
- FCA must publish a consumer rights leaflet Statutory regulator
Browse 6 other sections in this Part — procedural / definitional / commencement
Application of Part 6
Application of this Part in the case of consumer credit agreements
Disapplication of certain regulations in the case of low-value payment instruments
Avoidance of duplication of information
Charges for information
Burden of proof on payment service provider
Part 7 — Rights and Obligations in Relation to the Provision of Payment Services
Charges
- Follow rules for charging customers for payment services Operator
Obligations of the payment service user in relation to payment instruments and personalised security credentials
- Protect payment instruments and security credentials Any Person
Obligations of the payment service provider in relation to payment instruments
- Protect payment instruments and provide secure notification channels Operator
Notification and rectification of unauthorised or incorrectly executed payment transactions
- Notify your provider of unauthorised or incorrect payments to get redress Any Person
Evidence on authentication and execution of payment transactions
- Provide evidence if you dispute or claim a payment was processed incorrectly Operator
Payment service provider's liability for unauthorised payment transactions
- Refund and rectify accounts for unauthorised payment transactions Operator
Payment transactions where the transaction amount is not known in advance
- Ensure customer authorisation and prompt release of blocked funds Operator
Refunds for payment transactions initiated by or through a payee
- Refund customers for unauthorised or incorrectly valued transactions Operator
Requests for refunds for payment transactions initiated by or through a payee
- Process and respond to customer refund requests for direct payments Operator
Receipt of payment orders
- Only debit payment accounts after receiving a payment order Operator
Refusal of payment orders
- Notify customers if you refuse a payment order Operator
Revocation of a payment order
- Observe deadlines for cancelling payment orders Any Person
Amounts transferred and amounts received
- Transfer full payment amounts without unauthorized deductions Operator
Absence of payee's payment account with the payment service provider
- Make funds available immediately to payees without an account Operator
Cash placed on a payment account
- Make cash deposits available to customers within strict time limits Operator
Value date and availability of funds
- Ensure immediate availability of funds and correct value dating Operator
Non-execution or defective or late execution of payment transactions initiated by the payer
Unlimited fine- Refund and correct payment errors for payer-initiated transactions Operator
Non-execution or defective or late execution of payment transactions initiated through a payment initiation service
- Refund customers for failed or incorrect payments and seek compensation Operator
Liability of payment service provider for charges and interest
- Compensate customers for costs caused by payment failures Operator
Right of recourse
- Compensate other payment providers for losses from unauthorized transactions Operator
Consent for use of personal data
- Obtain explicit consent before using customer payment data Operator
Management of operational and security risks
- Manage operational and security risks and report assessments to the FCA Operator
Incident reporting
Unlimited fine- Report major operational or security incidents to the FCA Operator
Authentication
- Use Strong Customer Authentication for online payments and accounts Operator
Liability of payment service provider for charges and interest as a consequence of delay under regulation 86(2B)
- Pay user charges and interest resulting from payment delays Operator
Browse 15 other sections in this Part — procedural / definitional / commencement
Application of Part 7
Application of this Part in the case of consumer credit agreements
Disapplication of certain regulations in the case of low value payment instruments
Consent and withdrawal of consent
Confirmation of availability of funds for card-based payment transactions
Access to payment accounts for payment initiation services
Access to payment accounts for account information services
Limits on the use of payment instruments and access to payment accounts
Payer or payee's liability for unauthorised payment transactions
Application of regulations 86 to 88
Payment transactions to a payment account
Incorrect unique identifiers
Non-execution or defective or late execution of payment transactions initiated by the payee
Force majeure
Dispute resolution
Part 8 — Access to payment systems and bank accounts
Prohibition on restrictive rules on access to payment systems
- Ensure payment system access rules are fair and non-discriminatory Any Person
Indirect access to designated systems
- Assess indirect access requests to payment systems fairly Any Person
Access to bank accounts
- Grant payment service providers fair access to bank account services Any Person
Browse 1 other section in this Part — procedural / definitional / commencement
Part 9 — The Financial Conduct Authority
Monitoring and enforcement
Other duties (1) — Crown / regulator
- FCA and PSR must monitor and enforce payment services compliance Statutory regulator
Reporting requirements
- Submit payment services information and fraud data to the FCA Operator
Proposal to take disciplinary measures
Other duties (1) — Crown / regulator
- FCA must issue warning and decision notices before taking disciplinary action Statutory regulator
Proposal to require restitution
Other duties (1) — Crown / regulator
- FCA must issue warning and decision notices before requiring restitution Statutory regulator
Complaints
Other duties (1) — Crown / regulator
- FCA must provide a system for complaints against payment service providers Statutory regulator
Browse 13 other sections in this Part — procedural / definitional / commencement
Functions of the FCA
Application of this Part to requirements of assimilated direct legislation and FCA rules
Public censure
Financial penalties
Injunctions
Power of FCA to require restitution
Restitution orders
Costs of supervision
Credit agreements
Guidance
FCA's exemption from liability in damages
Application and modification of primary and secondary legislation
Technical standards
Part 10 — The Payment Systems Regulator
Penalties
Unlimited fine- Fail to comply with payment services or systems regulations Any Person
Notice of publication of a compliance failure or of imposition of a penalty
Other duties (1) — Crown / regulator
- Payment Systems Regulator must provide notice before issuing penalties Statutory regulator
Appeals: general
Other duties (1) — Crown / regulator
- Competition Appeal Tribunal must hear appeals against FCA or PSR decisions Tribunal / Court
Complaints
Other duties (1) — Crown / regulator
- PSR must provide a system for submitting complaints about rule breaches Statutory regulator
Browse 10 other sections in this Part — procedural / definitional / commencement
Interpretation of Part 10
Functions of the Payment Systems Regulator
Directions
Publication of compliance failures and penalties
Injunctions
Appeals against directions and publication of compliance failures
Appeals in relation to penalties
Guidance
Information and investigation
Application of other provisions of the 2013 Act
Part 11 — General
Prohibition on provision of payment services by persons other than payment service providers
2 years imprisonment- Provide unauthorised payment services Any Person
False claims to be a payment service provider or exempt
3 months imprisonment- Make false claim you are a payment service provider Any Person
Misleading the FCA or the Payment Systems Regulator
Unlimited fine- Give false or misleading information to the FCA or PSR Any Person
Liability of officers of bodies corporate etc
2 years imprisonment- Personal liability for company officers/partners for payment service breaches Director or Officer
Duty to co-operate and exchange of information
Other duties (1) — Crown / regulator
- Regulators must cooperate and may share information about payment providers Statutory regulator
Transitional and saving provisions: general
Other duties (1) — Crown / regulator
- FCA must maintain a register of authorised payment service providers Statutory regulator
Transitional provisions: account information services and payment initiation services
- Do not block Open Banking services while transitioning to new standards Operator
Browse 16 other sections in this Part — procedural / definitional / commencement
Prohibition on contracting out of statutory requirement
Defences
Contravention of regulations 57 and 58
Restriction on penalties
Prosecution of offences
Proceedings against unincorporated bodies
Actions for breach of requirements
Saving of Payment Services Regulations 2009
Transitional and saving provisions: authorised payment institutions
Transitional and saving provisions: small payment institutions
Transitional provisions: payments through network operators
Application to Gibraltar
Amendments to primary and secondary legislation
Revocations
Review
Single Euro Payments Area
Schedules
Prior general information for framework contracts
- Provide mandatory contract information to payment service users Operator
Browse 5 other Schedules — structural / supplementary
Payment Services
Capital requirements
Amendments to legislation
Revocations
Application and modification of the Banking Act 2009
Official guidance
Authoritative sources published by regulators or government explaining this legislation.
- FCA — Payment services and electronic money (opens in a new tab) from FCA Detailed Guidance
- FCA Connect (application portal) (opens in a new tab) from FCA Detailed Guidance
- Running a limited company - accounts (opens in a new tab) Detailed Guidance
- Get ready to open a business account (opens in a new tab) Detailed Guidance
- Set up a business bank account (opens in a new tab) Detailed Guidance
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
FCA
PrimaryFinancial Conduct Authority
Regulation of financial services firms and markets. Supervises banks, insurers, investment firms, payment services, and cryptoasset businesses. Issues authorisations and enforces conduct …
Payment Systems Regulator
Economic regulator for payment systems in the UK. Promotes competition, innovation, and service-user interests in payment systems. Regulates participants in designated payment …
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Regulators
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