Regulation (EU) 2024/886

In force

This text since 8 Apr 2024law://eu/reg/2024/886/art_3__pnt_1@2026-11-13

Contents

(1)Article 10(1) is replaced by the following:‘1.Member States or competent authorities shall require payment institutions which provide payment services as referred to in points (1) to (6) of Annex I to this Directive and electronic money institutions as defined in Article 2, point (1), of Directive 2009/110/EC to safeguard all funds which have been received from the payment service users or through another payment service provider for the execution of payment transactions, in either of the following ways:

(a)funds shall not be commingled at any time with the funds of any natural or legal person other than payment service users on whose behalf the funds are held and, where they are still held by the payment institution or electronic money institution and not yet delivered to the payee or transferred to another payment service provider by the end of the business day following the day when the funds have been received, they shall be deposited in a separate account in a credit institution or in a central bank at the discretion of that central bank, or invested in secure, liquid low-risk assets as defined by the competent authorities of the home Member State; and they shall be insulated in accordance with national law in the interest of the payment service users against the claims of other creditors of the payment institution or electronic money institution, in particular in the event of insolvency;

(b)funds shall be covered by an insurance policy or some other comparable guarantee from an insurance company or a credit institution, which does not belong to the same group as the payment institution or electronic money institution itself, for an amount equivalent to that which would have been segregated in the absence of the insurance policy or other comparable guarantee, payable in the event that the payment institution or electronic money institution is unable to meet its financial obligations.’

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Source: EUR-Lex, © European Union, 1998-2026. Reuse authorised under Decision 2011/833/EU.

Key facts

Type: Regulation · (EU) 2024/886 · EEA relevant
Adopted: 13 Mar 2024
In force: 8 Apr 2024
Made by: Council of the European Union, European Parliament
Official: EUR-Lex 32024R0886 · ELI

Topics

capital movement credit transfer electronic banking electronic money euro financial legislation financial services intra-EU payment payment system provision of services Free movement of capital Internal market - Principles

History · 1 version

8 Apr 2024Reading

Connections

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Amends 1: Directive (EU) 2015/23664 provisions
Cited by 3: this act; Decision (EU) 2026/812 (ECB/2026/10); Commission Implementing Regulation (EU) 2025/1979
Cites 1: Directive 2009/110/EC

Defined terms · 10

Show every defined term

instant credit transfer
means a credit transfer which is executed immediately, 24 hours a day and on any calendar day;
institution
shall mean: If a system is supervised in accordance with national legislation and only executes transfer orders as defined in point (i), second indent, as well as payments resulting from such orders, a Member State may decide that undertakings which participate in such a system and which have responsibility for discharging the financial obligations arising from transfer orders within this system, can be considered institutions, provided that at least three participants of this system are covered by the categories referred to in the first subparagraph of this point and that such a decision is warranted on grounds of systemic risk;
LEI
means a unique alphanumeric reference code based on the ISO 17442 standard assigned to a legal entity;
name of the payee
means, in respect of a natural person, the name and surname and, in respect of a legal person, the commercial or legal name;
participant
shall mean an institution, a CCP, a settlement agent, a clearing house, a system operator or a clearing member of a CCP authorised pursuant to Article 17 of Regulation (EU) No 648/2012.
payment account
means a payment account as defined in Article 4, point (12), of Directive (EU) 2015/2366;’;
payment initiation channel
means any method, device or procedure through which payers can place payment orders with their PSP for a credit transfer, including online banking, a mobile banking application, an automated teller machine, or in any other way on the premises of the PSP;
payment initiation service provider
means a payment initiation service provider as defined in Article 4, point (18), of Directive (EU) 2015/2366 of the European Parliament and of the Council;
retail payment system
means a payment system the main purpose of which is to process, clear or settle credit transfers or direct debits which are primarily of small amount, and that is not a large-value payment system;’;
targeted financial restrictive measure
means an asset freeze imposed on a person, body or entity or a prohibition on making funds or economic resources available to a person, body or entity, or for its benefit, either directly or indirectly, pursuant to restrictive measures adopted in accordance with Article 215 TFEU;