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ID 119. Maximum execution time (Internal reference 115)
Card transactions Back

Relevant provisions

Article 69 of Directive 2007/64/EC

Question

We understand Article 69(3) as requiring the acquirer to transmit the transaction data to the issuer within the time limits agreed with the merchant. It is however far from clear if – and if so, how – the rest of Article 69 applies to cards. We believe that Article 69 should be interpreted in the light of Recital 43 which acknowledges the principle of contractual freedom for card transactions and refers to an explicit agreement between the service provider and the payer. On that basis, the issuer is required to credit the acquirer's account within the time limits explicitly agreed with the cardholder. In view of the confusion surrounding this article due to the complexity of the cards business, we invite the Commission to confirm that:
1) the acquirer must transmit the transaction data to the issuer within the time limits agreed with the merchant; and
2) the issuer must credit the acquirer's account within the time limits explicitly agreed with the cardholder?

Answer

As for the first part of the question, please refer to the answer provided for Question No 107.2 on Article 69(1).
As for the second part, the Directive does not govern any time limit for the crediting of the payee's payment service provider's account (in case there is one) and it is therefore left up to the payment service providers to agree on the clearing and settlement procedures.

Date

Submitted on 11/07/2008

Legislative Area

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Asset management
Capital Requirements Directive
Markets in Financial Instruments Directive
Payment services

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