Payment Service Regulation 2017

Payment Services Regulation 2017

Re: Payment Services Regulation 2017 (“PSR17”)

WHAT THIS MEANS FOR YOU

Payment Services Regulation 2017: On 13 January 2018, an updated piece of banking legislation came in to force called the Payment Services Regulation 2017 (PSR17). This legislation is primarily focused on banking payment services, and to increase competition in the banking sector.

However, telecom companies that charge third-party services to their customers’ bills are also covered by this new legislation. This means your mobile network operator must, for the first time, limit these payment services to £240 a month.

The mobile networks are obliged to ensure their customers stay within these limits.  Therefore, your network will apply a daily spend limit to remain compliant with the Phone-paid Services Authority.

What’s happening?

From 13 January 2018, your mobile network will monitor your usage and spending for any services that are covered by this legislation. Some customers will be artificially capped to £240 (Inc. VAT) on their current expenditure even though they’d happily pay their bills.

Which services are affected?

Payment Services Regulation 2017:

The following services will contribute to your £240 monthly spend limit:

  • Calls to numbers starting 0871 (72 or 73), 09 and 118
  • Calls to shortcodes (like voting on TV shows such as Strictly Come Dancing)
  • Premium text messages (such as TV and radio competitions or virtual chat services using text messaging
  • Charge to Bill transactions (such as video purchases, charity donations or Spotify subscriptions)

Bars

If you exceed the £240 (Inc. VAT) monthly threshold, then your mobile network is required to limit your expenditure for these services by applying the Premium Rate bar and Charge to Bill bar. These won’t affect or limit any other usage or spend.

Payment Services Regulation 2017:

Text notifications

If you reach the £240 monthly spend limit due to any combination of services, you should receive a text message from your network provider to let you know that these bars have been applied to your account for the rest of the month.

For more information please visit the FCA website at www. fca.org.uk or read their report [PDF:2.1MB]

Further reading at www.legislation.gov.uk

This article relates to the implementation of the revised EU Payment Services Directive (PSDII)

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