Regulation 2019/518 - Amendment of Regulation (EC) No 924/2009 as regards certain charges on cross-border payments in the Union and currency conversion charges - Main contents
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official title
Regulation (EU) 2019/518 of the European Parliament and of the Council of 19 March 2019 amending Regulation (EC) No 924/2009 as regards certain charges on cross-border payments in the Union and currency conversion charges (Text with EEA relevance.)| Legal instrument | Regulation |
|---|---|
| Number legal act | Regulation 2019/518 |
| Original proposal | COM(2018)163  |
| CELEX number i | 32019R0518 |
| Document | 19-03-2019; Date of signature |
|---|---|
| Publication in Official Journal | 29-03-2019; OJ L 91 p. 36-41 |
| Signature | 19-03-2019 |
| Effect | 18-04-2019; Entry into force Date pub. +20 See Art 2.1 18-04-2019; Application Partial application See Art 2.2 PT (a) 15-12-2019; Application See Art 2.2 19-04-2020; Application Partial application See Art 2.2 PT (b) 19-04-2020; Application Partial application See Art 2.2 PT (d) 19-04-2021; Application Partial application See Art 2.2 PT (c) 19-04-2021; Application Partial application See Art 2.2 PT (e) |
| End of validity | 18-08-2021; Repealed by 32021R1230 |
29.3.2019 |
EN |
Official Journal of the European Union |
L 91/36 |
REGULATION (EU) 2019/518 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 19 March 2019
amending Regulation (EC) No 924/2009 as regards certain charges on cross-border payments in the Union and currency conversion charges
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Central Bank (1),
Having regard to the opinion of the European Economic and Social Committee (2),
Acting in accordance with the ordinary legislative procedure (3),
Whereas:
(1) |
Since the adoption of Regulations (EC) No 2560/2001 (4) and (EC) No 924/2009 (5) of the European Parliament and of the Council, charges for cross-border payments in euro between Member States of the euro area have strongly decreased to levels that are insignificant in the vast majority of cases. |
(2) |
Cross-border payments in euro from non-euro area Member States however account for around 80 % of all cross-border payments from non-euro area Member States. The charges for such cross-border payments remain excessively high in most non-euro area Member States, even though payment service providers that are located in non-euro area Member States have access to the same efficient infrastructures to process those transactions at very low costs as payment service providers that are located in the euro area. |
(3) |
High charges for cross-border payments remain a barrier to the full integration of businesses and citizens in non-euro area Member States into the internal market, affecting their competitiveness. Those high charges perpetuate the existence of two categories of payment service users in the Union: payment service users that benefit from the single euro payments area (SEPA), and payment service users that pay high costs for their cross-border payments in euro. |
(4) |
In order to facilitate the functioning of the internal market and to end the inequalities 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 corresponding national payments made in the national currency of the Member State in which the payment service provider of the payment service user is located. A payment service provider is considered to be located in the Member State in which it provides its services to the payment service user. |
(5) |
Currency conversion charges represent a significant cost of cross-border payments when different currencies are in use in the Member State of the payer and the Member State of the payee. Article 45 of Directive (EU) 2015/2366 of the European Parliament and of the Council (6) requires charges and the exchange rate used to be transparent, Article 52(3) of that Directive specifies information requirements with regard to payment transactions covered by a framework contract and Article 59(2) of that Directive covers the information requirements for parties offering currency conversion services at an automated teller machine (ATM) or at the point of sale. Those information requirements have not achieved sufficient transparency and comparability of currency conversion charges in situations in which alternative currency conversion options are offered at an ATM or at the point of sale. That lack of transparency and comparability prevents competition which would reduce currency conversion charges and increases the risk of payers choosing expensive currency conversion... |
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