ID 1110. Scope and definitions
Scope of the new Regulation 260/2012
The EMD stipulates that e-money has the purpose of making payment transactions as defined in the PSD and the EMI are entitled to provide the payment services listed in the Annex to the PSD.
Unlike the presence of a legal definition of a "payment account" in the PSD, the EMD contains no definition of an "e-money account", which issue has already been discussed in question ID 951. As explained in the answer to this question, the definition of "e-money" in the EMD is broad enough to cover different situations, regardless of that if the stored value is connected to a payment account in the meaning of the PSD or not. Therefore, it is not essential characteristics of the e-money to be connected to a Payment Account and there are e-money products on the market, which are not connected to a Payment Account.
The new Regulation 260/2012 establishing technical and business requirements for credit transfers and direct debits in Euro envisages the obligation an IBAN of the payee and payer to be provided by the PSP upon SEPA Credit Transfer.
The negative scope of the Regulation 260/2012 (1, para. 2, (f)) excludes its application for "payment transactions transferring electronic money" (a payment transaction which is defined neither in the PSD, nor in the EMD), with the following exception: "unless such transactions result in a credit transfer or direct debit to and from a payment account identified by BBAN or IBAN".
This expression is a bit ambiguous and the following questions arise:
1. Is this provision to be interpreted in a meaning, that:
a) the Regulation 260/2012 applies to transactions with e-money resulting in transfer of funds between TWO payment accounts ("to AND from"), i.e. situations where the e-money is connected to a Payment Account;
b) any transaction, resulting in a transfer of funds to a Payment Account falls under the scope of the Regulation 260/2012 (example: some PSPs such as PayPal and Moneybookers offer the service "withdraw funds to a bank account" for transfer of e-money to a payment account, whereas the PayPal/Moneybookers Accounts are NOT Payment Accounts and have no IBAN, but the funds are transferred to an Payment Account - would this situation fall under the scope of the Regulation 260/2012 as resulting "in a credit transfer [...] to [...] a payment account identified by BBAN or IBAN?).
2. If the correct interpretation of the above answer is b) and upon such transfer of e-money the IBAN of the payer has to be provided by the PSP, does this mean that:
a) e-money transferable to a Payment Account shall always be connected to a Payment Account identifiable with an IBAN (which would have as a consequence in the above example that PayPal/Moneybookers shall provide Payment Accounts to the users in order to support the service "withdraw funds to a bank account")
b) an "e-money account" may also be identifiable with an IBAN (which would have as a consequence in the above example that PayPal/Moneybookers may assign an IBAN to their e-money accounts). What would be the difference between an "e-money account" and a "payment account" then?
According to Article 2 (2) of the EMD "electronic money means electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transactions as defined in point 5 of Article 4 of Directive 2007/64/EC, and which is accepted by a natural or legal person other than the electronic money issuer". Furthermore, as stated in recital (8) of the EMD "the definition of electronic money should cover electronic money whether it is held on a payment device in the electronic money holder's possession or stored remotely at a server and managed by the electronic money holder through a specific account for electronic money".
As to Regulation 260/2012, Article 1(2)(f) provides that the Regulation applies to "payment transactions transferring electronic money" if such transactions "result in a credit transfer or direct debit to and from a payment account identified by BBAN or IBAN". This could equally apply to situations where there is only one payment account identified by IBAN or BBAN as well as to situations where there are two accounts identified by IBAN or BBAN.