Expansion of the PSD1 scope

The revised PSD relates to a larger geographic scope than its predecessor PSD1: so-called ‘one-leg’ transactions now also fall within the scope of the Payment Directive. From now on transactions in all currencies, no longer only transactions in euro and other EU / EEA currencies, fall within the scope of the PSD.

‘One-leg’ transactions are payments where only one of the payment service providers involved is located within the EU / EEA. This is either the payer’s payment service provider or that of the recipient.

As it is literally stated in the directive:

“Title III, except for point (b) of Article 45(1), point (2)(e) of Article 52, point (5)(g) of Article 52 and point (a) of Article 56, and Title IV, except for Article 62(2) and (4), Articles 76, 77, 81, 83(1), 89 and 92, apply to payment transactions in all currencies where only one of the payment service providers is located within the Union, in respect to those parts of the payments transaction which are carried out in the Union”.

Where it is important to know that:

Title III deals in particular with the transparency of conditions and information requirements with regard to payment services, and Title IV deals with the rights and obligations with regard to the provision and use of the same payment services.

In addition, it is important to know that in the one-leg transactions the PSD2 only relates to the part that is executed within the EU.

Although ‘one leg’ transactions now fall within the scope of PSD2, there are some differences compared to payment transactions that are entirely within the EU. The main difference is that the prescribed D + 1 execution time that applies to normal transactions does not apply to all ‘one leg’ transactions: for the ‘one-leg’ transaction it applies to transactions received within the EU that they must be credited on the same day and that the value date rules apply to both the debit (one-leg outgoing) and the credit (one-leg incoming), provided that the transaction takes place in a euro or other EU / EEA currency.

> 2. Limitation of exemptions