4.1 Definition and Scope

The regulation covers cross‐border payments in the EU, ensuring that charges for cross‐border payments are the same as those for the same currency within a Member State. For obvious reasons this is most relevant for cross‐border payments denominated in EUR, but non‐Euro countries can opt into those regulations should they want to (Art 1). For the purpose of this regulation, a payment is considered cross‐border when the payer's and the payee's payment service provider are located in a different Member State (Art 2).

The central provision in that regulation is Art 3.1:

Charges levied by a payment service provider on a payment service user in respect of cross‐border payments of up to EUR 50,000 shall be the same as the charges levied by that payment service provider on payment service users for corresponding national payments of the same value and in the same currency

ie for payments up to €50k, charges for cross‐border payments must be the same as charges for corresponding national payments. Thereby the definition of corresponding is to be clarified by the local regulator (Art 3).

Payment service providers must communicate to their clients which IBAN and BIC they should use to make and receive payments. This information should also be found on statements. Whoever initiates a payment must do so by communicating the appropriate IBAN and BIC, otherwise additional charges might be levied (Art 4).

Where a consumer account is reachable via national direct debit, it must also be reachable by SEPA direct debit, meaning that consumers that can pay their local bills this way shall also be able to pay cross‐border bills originating in that manner (Art 8). Note that there is no obligation that would require bills payable by national direct debit also be payable by cross‐border direct debit.

Member States must establish complaints procedures and out‐of‐court complaint and redress procedures for payment users vis‐à‐vis their payment service providers (Arts 10, 11). Member States who do not have the euro as national currency can opt into those regulations (Art 14).