- Question ID
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2022_6360
- Legal act
- Directive 2015/2366/EU (PSD2)
- Topic
- Other topics
- Article
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3
- Paragraph
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1
- Subparagraph
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o
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
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-
- Type of submitter
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Competent authority
- Subject matter
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Exclusion of cash withdrawal services from PSD2
- Question
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If a provider offers cash ATM withdrawal services, not acting on behalf of one or more card issuers but rather through an agreement with the main payment circuits, shall this type of provision be considered exempt from the PSD2?
- Background on the question
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A third country payment service provider manages a widespread network of ATMs in an EU member state in the absence of any authorization by an EU supervisory authority on the assumption to be performing a service falling outside the scope of application of Directive (EU) 2015/2366 (PSD2), pursuant to Article 3(1)(oo), PSD2. According to the mentioned article, the provision of cash withdrawal services falls outside the scope of PSD2 and does not require a license if the ATM operator:
- is acting on behalf of one or more card issuers;
- is not a party to the framework contract with the customer withdrawing money from a payment account;
- does not conduct other payment services.
The rationale of such exclusion is provided in recital 18 PSD2, according to which the exclusion is meant to stimulate the growth of independent ATM services in many Member States, in particular in less populated areas. The provider operates throughout the territory of an EU member state with capillarity through an agreement with the main payment circuits. The provider argues to be compliant with the conditions set in article 3(1)(o) PSD2, alleging that it has entered into an agreement, as ATM operator, with the main payment circuits by means of the common Scheme license that card issuers and ATM operators signed to be able to participate in the Schemes.
In a nutshell, the provider claims that acting 'on behalf of card issuers’ for the purpose of the ATM exemption is to be regarded as any kind of cooperation in the area of executing cash withdrawal transactions conducted with the cards issued by one or more of the issuers and therefore this Iimb of the ATM Exemption would be satisfied by virtue of the agreement between card issuers and ATM operator concluded by means of the common Scheme license (i.e. through the Schemes). In this context, with particular reference to the limb of “Acting on behalf of one or more card issuers”, the provider’s activity could fully fall into the ATM Exemption as all the relevant conditions are met.
- Submission date
- Status
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Question under review
- Answer prepared by
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Answer prepared by the European Commission because it is a matter of interpretation of Union law.