Your card and your rights under the Payment Services Directive

For the past two weeks, we have provided an introductory overview on how the Payment Services Directive relates to payment instruments and coverage of some of the terms and conditions which a framework contract under the PSD is to cover vis-à-vis...

1. How and within what period of time should the payment service user notify the bank of any unauthorised or incorrectly executed payment transaction? Users shall obtain rectification from the bank only if they notify their bank without undue delay on becoming aware of any unauthorised or incorrectly executed payment transactions giving rise to a claim - not later than 13 months after the debit date (ie. the date on which the transaction appeared on your statement and hence funds were withdrawn from the account);

2. The liability of the payment service provider for the execution of payment transactions (already tackled);

3. The conditions for refund if an authorised payment transaction has taken place ie. has already been executed and initiated by or through a payee. Refunds may be met if :

a. authorisation did not specify the exact amount of the payment transaction when the authorisation was made; and

b. the amount of the payment transaction exceeds the amount the payer could reasonably have expected, taking into account his previous spending pattern, conditions in his framework contract and relevant circumstances of the case.

Refunds may be requested within a period of eight weeks from the date on which funds were debited.

Finally some general tips:

• It will remain your responsibility to ensure that a renewed card is in your possession prior to the expiry date of your existing card;

• One must give a pre-determined period of notice prior to the expiry date of the card if renewal is not envisaged;

• Some banks may require their customers to destroy the PIN notification. Otherwise, card and PIN should always be kept separate and not notified to anybody. One should consider changing the PIN from time to time.

• The banks are committed to send cardholders annual statements of their accounts.

• You are responsible to check statements of your bank account and to contact the bank immediately if you think a transaction is unauth-orised or, in any manner, incorrect.

• The services provided by your bank are governed by terms and conditions. It is your responsibility to ensure you abide by such terms.

For more information and for more consumer issues on fin-ancial matters, call the MFSA's Consumer Complaints Unit on freephone 8007 4924 or visit http://mymoneybox.mfsa.com.mt.

Your card and your rights under the Payment Services Directive

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