Access to European Union law
<a href="https://eur-lex.europa.eu/content/help/eurlex-content/experimental-features.html" target="_blank">More about the experimental features corner</a>
Choose the experimental features you want to try
EUR-Lex
Access to European Union law

This document is an excerpt from the EUR-Lex website

You are here
Use quotation marks to search for an "exact phrase". Append an asterisk (*) to a search term to find variations of it (transp*, 32019R*). Use a question mark (?) instead of a single character in your search term to find variations of it (ca?e finds case, cane, care).
Search tips
Need more search options? Use the Advanced search

Summaries of EU Legislation

Cross-border payments in the European Union

SUMMARY OF:

Regulation (EU) 2021/1230 on cross-border payments in the European Union

WHAT IS THE AIM OF THE REGULATION?

Regulation (EU) 2021/1230 codifies the rules within the European Union (EU) on:

  • cross-border payments1
  • the transparency of currency conversion charges.

Regulation (EU) 2024/886, which requires payment service providers that provide standard credit transfers in euro to offer the service of sending and receiving instant payments in euro, amends and adapts Regulation (EU) 2021/1230 to this change.

KEY POINTS

The regulation applies to cross-border payments denominated in:

Charges2 for cross-border payments in euro or in the national currency of participating Member States should be the same as for corresponding payments within a Member State.

Payment service providers3 must offer the following information free of charge to payers making card-based transactions:

  • before the transaction is made, information on the total currency conversion charges as a percentage mark-up over the European Central Bank’s latest euro foreign exchange rates, in a comprehensible and easily accessible manner;
  • after the transaction is made, details of the transaction, sent electronically without undue delay.

Before a payer makes an online credit transfer, payment service providers must offer clear, neutral and comprehensible information on the total amount of the transfer, including any transaction fees and currency conversion charges.

Currency conversion services

Parties providing currency conversion services at a cash machine or at the point of sale must provide customers with the following information in a clear and accessible manner before a transaction is made:

  • the total currency conversion charges as a percentage mark-up;
  • the amount to be paid in both the payer’s and the payee’s own currencies and the possibility of paying in either.

Customers and suppliers of goods and services applying the regulation to make and receive payments use their international bank account number (IBAN) and the payment service provider’s bank identifier code (BIC).

Member States must:

  • designate national authorities to monitor and ensure compliance with the legislation;
  • establish procedures for payment service users and others to submit complaints;
  • provide for adequate and effective out-of-court complaint and redress procedures;
  • ensure cooperation between their national authorities, particularly in solving cross-border disputes;
  • apply penalties for violations of the legislation.

Instant credit transfers

Regulation (EU) 2024/886 amends Regulation (EU) 2021/1230 and requires that charges applied to payers and payees for cross-border instant credit transfers in euro do not exceed the charges applied for cross-border non-instant credit transfers in euro. This requirement prevails in situations where the application of other requirements of Regulation (EU) 2021/1230 would otherwise lead to the outcome that charges for cross-border instant credit transfers in euro exceed the charges applied for cross-border non-instant credit transfers in euro.

Repeal

The regulation repeals Regulation (EC) No 924/2009.

FROM WHEN DOES THE REGULATION APPLY?

  • Regulation (EU) 2021/1230 has applied since . A Member State that does not have the euro as its currency and that decides to extend the application of this regulation to its national currency is required to notify the Commission accordingly.
  • Amending Regulation (EU) 2024/886 has applied since .

BACKGROUND

The single euro payments area aims to ensure that:

  • making electronic payments in the euro area is as easy as making cash payments;
  • no extra charges are involved when making an electronic euro payment from one Member State to another.

Directive (EU) 2015/2366 requires the charges and exchange rate used in cross-border payments to be transparent. It also specifies the information to be given to customers (see summary).

For further information, see:

KEY TERMS

  1. Cross-border payments. Electronic wholesale and retail payments where the payer and the recipient are in different Member States.
  2. Charge. The direct or indirect cost linked to a payment transaction.
  3. Payment service provider. A company that enables businesses to accept credit or debit card and digital wallet in-person and online payments.

MAIN DOCUMENT

Regulation (EU) 2021/1230 of the European Parliament and of the Council of on cross-border payments in the Union (codification) (OJ L 274, , pp. 20–31).

Successive amendments to Regulation (EU) 2021/1230 have been incorporated into the original text. This consolidated version is of documentary value.

last update

Top