Article 74(1) of the PSD states that the bank of the payer is obliged to execute the payment order in accordance with the unique identifier, IBAN and BIC in the case of a cross-border credit transfer. The PSD does not oblige the payer's or the payee's payment service provider to check the concordance between the unique identifier and the name of the payee mentioned on the payment order - see Article 74(3). The law does not address the case where banks perform such checks, and where the unique identifier does not match with the name of the payee. Some banks may decide, in such circumstances, to return the payment to the payer. At the same time, the PSD does not attribute, in this case, the liability for non-execution of the transaction to the payment service user. Consequently, unless the contract with the bank specifies otherwise, the payer shall not be charged for such a return transaction by any of the banks involved.
Issues of correct application of the PSD can be raised with the authorities responsible for supervision of the PSD: in Austria the Finanzmarktaufsicht (www.fma.gov.at) or in Germany the Bundesanstalt für Finanzdienstleistungsaufsicht - BaFin (www.bafin.de).
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