[ParlTrack]

Proposal for a regulation
Recital 1

(1) Since the adoption of, first, Regulation (EC) No 2560/2001 of the European Parliament and of the Council10 and subsequently Regulation (EC) No 924/2009 of the European Parliament and of the Council11 , charges for cross-border payments in euro between Member States of the euro area have ~~strongly~~ decreased to the level~~s that are insignificant in the vast majority of cases~~ of charges for corresponding payments within a Member State. _________________ 10 Regulation (EC) No 2560/2001 of the European Parliament and of the Council of 19 December 2001 on cross-border payments in euro (OJ L 344, 28.12.2001, p. 13). 11 Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16 September 2009 on cross-border payments in the Community and repealing Regulation (EC) No 2560/2001 (OJ L 266, 9.10.2009, p. 11).

2018/09/18
Committee: ECON

Olle LUDVIGSSON

Proposal for a regulation
Recital 2

(2) Cross-border payments in euro from non-euro area Member States however account for ~~a very large part~~80% of all cross- border payments from non-euro area Member States. The charges for those specific cross-border payments remain ~~high~~excessively high in most non-euro Member States, even though payment service providers have access to the same efficient infrastructures to process those transactions at very low costs as payment service providers from the euro area.

2018/09/18
Committee: ECON

Olle LUDVIGSSON

Proposal for a regulation
Recital 3

(3) HExcessively high charges for both euro and non-euro currencies cross- border payments remain a barrier to the full integration into the single market of businesses and citizens in non-euro area Member States. They perpetuate the existence of two categories of payment service users in the Union: on the one hand payment service users, the vast majority of which benefit from the single euro payments area (‘SEPA’), and on the other hand, payment service users that pay arbitrarily high costs for their cross-border payments in euro and non-euro currencies.

2018/09/18
Committee: ECON

Olle LUDVIGSSON

Proposal for a regulation
Recital 4

(4) In order to facilitate the functioning of the Single Market and end the barriers between payment service users in the euro area and non-euro area Member States in respect of cross-border payments ~~in euro~~, it is necessary to ensure that charges for cross- border payments ~~in euro~~ within the Union are aligned with charges for domestic payments made in the official currency of a Member State.

2018/09/18
Committee: ECON

Olle LUDVIGSSON

Proposal for a regulation
Recital 5

(5) Currency conversion charges represent a significant cost of cross-border payments when different currencies are in use in the payer’s and the payee’s countries. Article 45 of Directive (EU) 2015/2366 of the European Parliament and of the Council12 requires transparency of charges and of the exchange rate used prior to the initiation of a payment transaction. When alternative currency conversion options are offered at a point of sale or at an automated teller machine (ATM), that transparency may not allow for a quick and clear comparison between those different currency conversion options. That lack of transparency prevents competition from bringing down costs of currency conversion and increases the risk of payers ~~choosing expensive currency conversion options~~unintentionally choosing the often more expensive currency conversion option – namely ‘dynamic currency conversion’ (DCC). When the consumer is faced with the option of making use of DCC or paying in the local currency, he/she usually has to make a quick decision in a time constrained environment (for example in the queue in a shop, or at withdrawal in an ATM with its associated queue). This creates further difficulty for the consumer to make a beneficial and well-considered choice. It is therefore necessary to develop measures addressed to payment service providers that will improve transparency and protect consumers against excessive charges for currency conversion services, in particular when consumers are not given the information they need to choose the best currency conversion option. _________________ 12 Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35).

2018/09/18
Committee: ECON

Olle LUDVIGSSON

Proposal for a regulation
Recital 5 a (new)

(5a) In order to improve payment service user transparency, the payment service provider of the payer shall be required to inform the payer about various currency conversion services and their costs, including charges related to the practice of ‘dynamic currency conversion’(DCC) when making foreign card payments (making a cash withdrawal at ATMs, card payment at the point of sale, and payments made online), in good time prior to the initiation of payment transactions, in a clear and neutral manner in conformity with Article 52.3b of Directive (EU) 2015/2366. The payment service provider shall neither preselect a currency conversion option, nor present any of the currency conversion options in a misleading manner. Furthermore, the payment service provider of the payer shall give to the holder of the card-based payment instrument the possibility to block the use of alternative currency conversion services (DCC).

2018/09/18
Committee: ECON

Olle LUDVIGSSON

Proposal for a regulation
Recital 5 b (new)

(5b) With the aim of improving price comparability between paying in ‘home currency’ using alternative currency conversion services (DCC), or paying in ‘local currency’ using the currency conversion service of the card scheme and his/her bank, the payment service provider of the payer shall inform the payment service user of the full cost (including mark-ups and fixed fees) of all currency conversion options simultaneously and in a clear and neutral manner. This information shall be displayed as the final amount of DCC and non-DCC options in the currency of the card-holder.

2018/09/18
Committee: ECON

Olle LUDVIGSSON

Proposal for a regulation
Recital 5 c (new)

(5c) Currency conversion services applying currency conversion rates for clearing and settlements at another time than the actual time of purchase or withdrawal shall be required to estimate an ‘approximate currency conversion rate’ in order to enable accurate price comparison between different currency conversion services.

2018/09/18
Committee: ECON

Olle LUDVIGSSON

Proposal for a regulation
Recital 6

(6) Transparency in currency conversion charges requires adapting current payment infrastructures and processes, in particular for payments made online, at the point of sale or for ATM cash withdrawals. To that end, market players should be given sufficient time to adapt their infrastructure and processes in relation to those provisions that relate to currency conversion charges in order to comply with ~~regulatory technical standards to be adopted by the Commiss~~the new transparency requirements of currency conversion charges in this Regulation. These provisions shall apply from 24 months after the entry into force of this Regulation.

2018/09/18
Committee: ECON

Olle LUDVIGSSON

Proposal for a regulation
Recital 7

(7) Considering the technical level of the measures required for transparency in currency conversion charges, the Commission should be empowered to adopt regulatory technical standards developed by the European Banking Authority with regard to the level of transparency required and the comparability of currency conversion services. The Commission should adopt those draft regulatory technical standards by means of delegated acts pursuant to Article 290 Treaty on the Functioning of the European Union and in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council13 . _________________ 13 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).deleted

2018/09/18
Committee: ECON

Olle LUDVIGSSON

Proposal for a regulation
Recital 7 a (new)

(7a) This regulation should increase transparency and thus allowing comparability of costs related to credit transfers for both consumers and businesses. Therefore, payment service providers should inform payment service users of the estimated full cost of credit transfer currency conversion services prior to the initiation of the transaction, in order for payment service users to compare alternative currency conversion options and their corresponding costs. Payment service providers applying a currency conversion rate for clearing and settlement at another time than the actual time of the initiated credit transfer, should estimate an ‘approximate currency conversion rate’ to be applied at the time of the initiated credit transfer.

2018/09/18
Committee: ECON

Olle LUDVIGSSON

Proposal for a regulation
Recital 8

(8) In order to limit consumer detriment before market players are required to comply with the transparency measures, it is appropriate to instruct the European Banking Authority (‘EBA’) to define within the regulatory technical standard the level of a transitional cap that should be applied to limit charges for currency conversion services while at the same time maintaining fair competition among payment service providers.deleted

2018/09/18
Committee: ECON

Olle LUDVIGSSON

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point a

Regulation (EC) No 924/2009
Article 3 – paragraph 1

1. Charges levied by a payment service provider on a payment service user in respect of cross-border payments ~~in euro~~ shall be the same as the charges levied by that payment service provider on payment service users for corresponding national payments of the same value and in the official currency of the payment service user’s Member State.

2018/09/18
Committee: ECON

Olle LUDVIGSSON