Denis Naughten (Roscommon-South Leitrim, Fine Gael)
Link to this: Individually | In context

Question 125: To ask the Minister for Finance when he will enact the payment services directive into law; if it is intended to include provisions covering direct debit charges and penalties for consumers not using such a payment mechanism; and if he will make a statement on the matter. [29259/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I refer to my answer to Question No. 297 of 27 January 2009.

EU Member States are required to transpose the Payment Services Directive into national law before 1 November 2009. Regulations to give effect to the Directive in Irish law will be made under the European Communities Acts 1972 to 2007 and I intend that these regulations will be made in good time to enable prospective payment institutions to become authorised or registered in accordance with the Directive by 1 November 2009.

Prior to the making of the regulations, my Department will consult on the draft text of the transposing regulations. Final decisions on the use of the various national discretions available in the Directive will be taken following the consultation.

Article 52(3) of the Directive prohibits payment service providers from preventing merchants applying a surcharge or offering a reduction for the use of a given payment instrument, in order to ensure that the costs of efficient and inefficient payment instruments are transparent. While Article 52(3) contains an optional provision for Member States to forbid or limit the right to request such surcharges for the use of a particular payment instrument, a substantive case, consistent with the objectives of the Directive, has not been made to me that would lead me to consider availing of this option.