BETA

Activities of Olle LUDVIGSSON related to 2018/0076(COD)

Plenary speeches (1)

Charges on cross-border payments in the Union and currency conversion charges (debate) SV
2016/11/22
Dossiers: 2018/0076(COD)

Shadow reports (1)

REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 924/2009 as regards certain charges on cross-border payments in the Union and currency conversion charges PDF (566 KB) DOC (67 KB)
2016/11/22
Committee: ECON
Dossiers: 2018/0076(COD)
Documents: PDF(566 KB) DOC(67 KB)

Amendments (27)

Amendment 17 #
Proposal for a regulation
Recital 1
(1) Since the adoption of, first, Regulation (EC) No 2560/2001 of the European Parliament and of the Council10 and subsequently Regulation (EC) No 924/2009 of the European Parliament and of the Council11 , charges for cross-border payments in euro between Member States of the euro area have strongly decreased to the levels that are insignificant in the vast majority of cases of charges for corresponding payments within a Member State. _________________ 10 Regulation (EC) No 2560/2001 of the European Parliament and of the Council of 19 December 2001 on cross-border payments in euro (OJ L 344, 28.12.2001, p. 13). 11 Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16 September 2009 on cross-border payments in the Community and repealing Regulation (EC) No 2560/2001 (OJ L 266, 9.10.2009, p. 11).
2018/09/18
Committee: ECON
Amendment 18 #
Proposal for a regulation
Recital 2
(2) Cross-border payments in euro from non-euro area Member States however account for a very large part80% of all cross- border payments from non-euro area Member States. The charges for those specific cross-border payments remain highexcessively high in most non-euro Member States, even though payment service providers have access to the same efficient infrastructures to process those transactions at very low costs as payment service providers from the euro area.
2018/09/18
Committee: ECON
Amendment 22 #
Proposal for a regulation
Recital 3
(3) HExcessively high charges for both euro and non-euro currencies cross- border payments remain a barrier to the full integration into the single market of businesses and citizens in non-euro area Member States. They perpetuate the existence of two categories of payment service users in the Union: on the one hand payment service users, the vast majority of which benefit from the single euro payments area (‘SEPA’), and on the other hand, payment service users that pay arbitrarily high costs for their cross-border payments in euro and non-euro currencies.
2018/09/18
Committee: ECON
Amendment 27 #
Proposal for a regulation
Recital 4
(4) In order to facilitate the functioning of the Single Market and end the barriers 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 domestic payments made in the official currency of a Member State.
2018/09/18
Committee: ECON
Amendment 29 #
Proposal for a regulation
Recital 5
(5) Currency conversion charges represent a significant cost of cross-border payments when different currencies are in use in the payer’s and the payee’s countries. Article 45 of Directive (EU) 2015/2366 of the European Parliament and of the Council12 requires transparency of charges and of the exchange rate used prior to the initiation of a payment transaction. When alternative currency conversion options are offered at a point of sale or at an automated teller machine (ATM), that transparency may not allow for a quick and clear comparison between those different currency conversion options. That lack of transparency prevents competition from bringing down costs of currency conversion and increases the risk of payers choosing expensive currency conversion optionsunintentionally choosing the often more expensive currency conversion option – namely ‘dynamic currency conversion’ (DCC). When the consumer is faced with the option of making use of DCC or paying in the local currency, he/she usually has to make a quick decision in a time constrained environment (for example in the queue in a shop, or at withdrawal in an ATM with its associated queue). This creates further difficulty for the consumer to make a beneficial and well-considered choice. It is therefore necessary to develop measures addressed to payment service providers that will improve transparency and protect consumers against excessive charges for currency conversion services, in particular when consumers are not given the information they need to choose the best currency conversion option. _________________ 12 Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35).
2018/09/18
Committee: ECON
Amendment 35 #
Proposal for a regulation
Recital 5 a (new)
(5a) In order to improve payment service user transparency, the payment service provider of the payer shall be required to inform the payer about various currency conversion services and their costs, including charges related to the practice of ‘dynamic currency conversion’(DCC) when making foreign card payments (making a cash withdrawal at ATMs, card payment at the point of sale, and payments made online), in good time prior to the initiation of payment transactions, in a clear and neutral manner in conformity with Article 52.3b of Directive (EU) 2015/2366. The payment service provider shall neither preselect a currency conversion option, nor present any of the currency conversion options in a misleading manner. Furthermore, the payment service provider of the payer shall give to the holder of the card-based payment instrument the possibility to block the use of alternative currency conversion services (DCC).
2018/09/18
Committee: ECON
Amendment 37 #
Proposal for a regulation
Recital 5 b (new)
(5b) With the aim of improving price comparability between paying in ‘home currency’ using alternative currency conversion services (DCC), or paying in ‘local currency’ using the currency conversion service of the card scheme and his/her bank, the payment service provider of the payer shall inform the payment service user of the full cost (including mark-ups and fixed fees) of all currency conversion options simultaneously and in a clear and neutral manner. This information shall be displayed as the final amount of DCC and non-DCC options in the currency of the card-holder.
2018/09/18
Committee: ECON
Amendment 38 #
Proposal for a regulation
Recital 5 c (new)
(5c) Currency conversion services applying currency conversion rates for clearing and settlements at another time than the actual time of purchase or withdrawal shall be required to estimate an ‘approximate currency conversion rate’ in order to enable accurate price comparison between different currency conversion services.
2018/09/18
Committee: ECON
Amendment 41 #
Proposal for a regulation
Recital 6
(6) Transparency in currency conversion charges requires adapting current payment infrastructures and processes, in particular for payments made online, at the point of sale or for ATM cash withdrawals. To that end, market players should be given sufficient time to adapt their infrastructure and processes in relation to those provisions that relate to currency conversion charges in order to comply with regulatory technical standards to be adopted by the Commissthe new transparency requirements of currency conversion charges in this Regulation. These provisions shall apply from 24 months after the entry into force of this Regulation.
2018/09/18
Committee: ECON
Amendment 46 #
Proposal for a regulation
Recital 7
(7) Considering the technical level of the measures required for transparency in currency conversion charges, the Commission should be empowered to adopt regulatory technical standards developed by the European Banking Authority with regard to the level of transparency required and the comparability of currency conversion services. The Commission should adopt those draft regulatory technical standards by means of delegated acts pursuant to Article 290 Treaty on the Functioning of the European Union and in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council13 . _________________ 13 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).deleted
2018/09/18
Committee: ECON
Amendment 51 #
Proposal for a regulation
Recital 7 a (new)
(7a) This regulation should increase transparency and thus allowing comparability of costs related to credit transfers for both consumers and businesses. Therefore, payment service providers should inform payment service users of the estimated full cost of credit transfer currency conversion services prior to the initiation of the transaction, in order for payment service users to compare alternative currency conversion options and their corresponding costs. Payment service providers applying a currency conversion rate for clearing and settlement at another time than the actual time of the initiated credit transfer, should estimate an ‘approximate currency conversion rate’ to be applied at the time of the initiated credit transfer.
2018/09/18
Committee: ECON
Amendment 57 #
Proposal for a regulation
Recital 8
(8) In order to limit consumer detriment before market players are required to comply with the transparency measures, it is appropriate to instruct the European Banking Authority (‘EBA’) to define within the regulatory technical standard the level of a transitional cap that should be applied to limit charges for currency conversion services while at the same time maintaining fair competition among payment service providers.deleted
2018/09/18
Committee: ECON
Amendment 71 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point a
Regulation (EC) No 924/2009
Article 3 – paragraph 1
1. Charges levied by a payment service provider on a payment service user in respect of cross-border payments in euro 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 official currency of the payment service user’s Member State.
2018/09/18
Committee: ECON
Amendment 75 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Regulation (EC) No 924/2009
Article 3 a – paragraph 1
1. From [OP please insert date 36 months after the entry into force of this Regulation], payment service providers shall inform payment service users of the full cost of currency conversion services, and where applicable, those of alternative currency conversion services prior to the initiation of a payment transaction, in order that payment service users can compare alternative currency conversion options and their corresponding costs. To that effect, payment service providers shall disclose the exchange rate applied, the foreign exchange reference rate used and the total amount of all charges applicable to the conversion of the payment transaction.deleted
2018/09/18
Committee: ECON
Amendment 89 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Regulation (EC) No 924/2009
Article 3a – paragraph 2 – subparagraph 1
The European Banking Authority (‘EBA’) shall develop draft regulatory technical standards specifying how payment service providers shall ensure transparency and price comparability of different currency conversion service options, where those are available, to payment service users. Those standards shall include measures to be applied by payment service providers, including at an ATM or point of sale, to ensure that payment service users are informed about the costs of the currency conversion service and the alternative currency conversion options, where available, before the payment is initiated.deleted
2018/09/18
Committee: ECON
Amendment 93 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Regulation (EC) No 924/2009
Article 3 a – paragraph 2 – subparagraph 2
The draft regulatory technical standards referred to in the first subparagraph shall also set the maximum amount of all charges allowed for the currency conversion services that can be applied to a payment transaction during the transitional period referred to in Article 3b. Those standards shall take into account the amount of the payment transaction and the fluctuation in exchange rates between currencies of Union Member States, while securing and maintaining fair competition among all payment service providers The regulatory technical standards shall specify the measures to be applied in order to prevent payment service users being charged more than this maximum amount during that period.deleted
2018/09/18
Committee: ECON
Amendment 95 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Regulation (EC) No 924/2009
Article 3 a – paragraph 2 – subparagraph 3
EBA shall submit those draft regulatory technical standards to the Commission by [6 months after entry into force of this Regulation]deleted
2018/09/18
Committee: ECON
Amendment 97 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Regulation (EC) No 924/2009
Article 3 a – paragraph 2 – subparagraph 4
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council*.
2018/09/18
Committee: ECON
Amendment 98 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Regulation (EC) No 924/2009
Article 3 a – paragraph 2 a (new)
2a. The payment service provider of the payer shall inform the payer about various currency conversion services and their costs in good time prior to the initiation of payment transactions, in a clear and neutral manner in conformity with Article 52 (3) (b) of Directive (EU) 2015/2366.
2018/09/18
Committee: ECON
Amendment 99 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Regulation (EC) No 924/2009
Article 3 a – paragraph 2 b (new)
2b. The payment service provider issuing card-based payment instruments shall give to the holder of the card-based payment instrument the right to insert into his payment instrument the possibility of blocking the use of alternative currency conversion services.
2018/09/18
Committee: ECON
Amendment 100 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Regulation (EC) No 924/2009
Article 3 a – paragraph 2 c (new)
2c. The payer shall be able to easily change his preference with regard to alternative currency conversion services through technical tools put at his disposal by his payment service provider.
2018/09/18
Committee: ECON
Amendment 101 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
2d. If the payer had given consent to use alternative currency conversion services, from 24 months after the entry into force of this regulation, at an ATM or point of sale, where relevant, the payment service providers of the payer and of the payee shall inform the payment service user of the full cost of all currency conversion options simultaneously, in a clear and neutral manner. This information shall be displayed as the final amount in the currency of the card- holder.
2018/09/18
Committee: ECON
Amendment 102 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Regulation (EC) No 924/2009
Article 3 a – paragraph 2 e (new)
2e. If the currency conversion service applies currency conversion rates for clearing and settlements at another time than the actual time of purchase or withdrawal made by the payments service user, the payment service provider shall then be required to estimate an ‘approximate currency conversion rate’ that must be applied at the actual time of purchase or withdrawal.
2018/09/18
Committee: ECON
Amendment 106 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Regulation (EC) No 924/2009
Article 3 b
During the transitional period between the entry into force of the regulatory technical standards referred to in the fourth subparagraph of Article 3a(2) and the date of application of Article 3a(1), the charges for currency conversion services shall not exceed the maximum amount set in the regulatory technical standards adopted in accordance with the fourth subparagraph of Article 3a(2).;deleted
2018/09/18
Committee: ECON
Amendment 109 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4 a (new)
Regulation (EC) No 924/2009
Article 3 b a (new)
(4a) The following Article 3 b a is inserted : Article 3ba Credit transfer currency conversion services 1. When a currency conversion is offered by the payment service provider of the payer for a credit transfer as defined in Regulation (EU) No 260/2012, the payment service provider shall prior to the initiation of the transaction inform the payment service user of the full cost the credit transfer in a clear and neutral manner, including any transaction fee and charge in the exchange rate. Payment service providers shall disclose the total amount of all charges applicable to the conversion of the payment transaction in both the currency of the payer and the payee. The payment service provider shall also inform the payment service user of the total amount to be received by the payee after the payment service providers chargers have been levied, without any receiving fees. These requirements shall apply 12 months after the entry into force of this Regulation. 2. If the payment service provider applies a currency conversion rate for clearing and settlements at another time than the actual time of the initiated credit transfer made by the payment service user, the payment service provider shall then be required to estimate an ‘approximate currency conversion rate’ that must be applied at the time of the initiated credit transfer. These requirements shall apply 12 months after the entry into force of this Regulation.
2018/09/18
Committee: ECON
Amendment 110 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4 c (new)
Regulation (EC) No 924/2009
Article 14
(4c) Article 14 (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32009R0924&from=EN)is 14 deleted "" Or. en
2018/09/18
Committee: ECON
Amendment 111 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5
Regulation (EC) No 924/2009
Article 15
By 31 October 2022, the Commission shall present to the European Parliament, the Council, the European Economic and Social Committee and the European Central Bank a report on the application of this Regulation, accompanied, if appropriate, by a proposal. That report shall cover, in particular, the appropriateness of amending Article 1(2) to ensure that this Regulation covers all currencies of Member States of the Unionthis Regulation with the aim of further reducing consumer and business costs associated with both domestic and cross- border payments in all Member States. In addition, the report shall evaluate the effectiveness of the provisions in this Regulation to ensure price comparability of different currency conversion services, and if further amendments to this Regulation are needed to ensure full price transparency and comparability for both businesses and consumers.
2018/09/18
Committee: ECON