#2009-866Ordinance on Payment Service Provision Conditions and Establishment of Payment Institutions
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This law outlines the conditions for providing payment services and establishes payment institutions in France. It affects banks, financial institutions, and new payment entities. The law ensures that payment operations, such as fund transfers, are clear and fair, with specific procedural guidelines for payment authorization and execution.
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Key Changes
- Payment institutions are now officially recognized alongside banks.
- Clear rules for payment authorization and operations.
- Payment providers must ensure the security of personalized security devices.
Obligations
What this law requires
Payment institutions must apply payment operation rules to fund transfer, deposit, and withdrawal operations conducted in euros or other specified currencies when both the payer's and beneficiary's payment service providers are located in France (metropolitan, overseas departments, or other specified territories) or within EU/EEA member states.
Payment service providers must obtain explicit consent from the payer before executing a payment order initiated by the beneficiary, except in cases where the user is a consumer acting for non-professional purposes and contractual derogation is permitted.
Payment service providers must provide each user of payment services with a personalized security device that authenticates the user's identity for use of payment instruments, and users must maintain guard over this device.
Payment service providers must furnish users with a unique identifier (combination of letters, numbers, or symbols) that users must provide to enable identification of the other payment service user and their payment account for the payment operation.
For cross-border payment operations involving Saint-Pierre-et-Miquelon or Mayotte as the payer's location, the liability regime in Sections 2-9 does not apply; instead, specific procedures for card-based and other payment operations with reduced liability periods (70 days, extendable to 120 days) apply.