The EU Payment Services Directive (PSD) and the corporate consumer

Pan EEA – affects even domestic sterling payments

The Payment Services Directive, which comes into force in November 2009, will lead to companies needing to reach new “framework agreements” with their banks. Treasurers have a mountain of detail to master in a short time – especially as the PSD will affect all subsidiaries throughout the European Economic Area.

The PSD covers all electronic payment services (however the payment services provider is instructed) and will apply to all EEA currencies (unlike SEPA which relates to the Euro only). It also limits the maximum cycle time for cash and cheque payments.