Payment Services Directive 1 (PSD 1)

Active since: January 1st 2012
Succeeded by: Payment Services Directive 2 (PSD2)
Succeeded since: September 14th 2019
Target: Every payment service provider within the European Union
Goal: harmonization of payment products, infrastructures and technical standards throughout the European Union


With Europe becoming one large internal market, it is important that customers can choose the best financial services to fit their needs while having confidence in the provider even if it is not a near by institution. The aim of the Payment Services Directive is to protect the customer sufficiently to obtain that trust when taking part in a contract negotiated by phone, mail, e-mail or any other method where the supplier and customer are not present at the same time.

A sample set of these regulations are:

  • A customer is not giving consent for a service if they do not reply. This does not include silent extension of contracts if that is legit according to the local law.
  • There must be an effective procedure in place in order for the customer to settle a dispute between the customer and the supplier.
  • Before a customer will participate in a contract, he must be given details of the supplier, the financial service, the distance contract and the dispute procedure.
  • The contractual terms are provided on paper or any other durable medium not being the public internet.
  • The customer will have 14 calendar days to withdraw from the contract without any penalty or giving any reason (exceptions apply).
  • Card payments that were fraudulent must be re-credited


Full text of Payment Services Directive