Consumer rights in the field of payment services

It is important that consumers are clearly and comprehensibly informed about rights and obligations under the Second payment services Directive (PSD2). The European Commission has therefore produced a brochure on the rights and obligations referred to in the Directive which briefly sets out the latest consumer rights in the area of payment services. It should be noted that the detailed requirements laid down in the Directive have been transposed into LATVIAN national legislation by MPENL.

YOUR RIGHT IN A NUTSHELL

With EU regulation, making electronic payments becomes cheaper, easier and safer. In particular:

• You can make payments across Europe (EU, Islande, Norway and Liechtenstein) as easily and safely as in your home country.
• Traders may no longer charge you any extra if you settle with a card issued in the EU.
• These provisions shall apply to all electronic payments (credit transfers, direct debits, card payments, etc.).
• Anyone entitled to stay in Europe is entitled to a payment account for electronic payments (“payment account”).

WANT TO KNOW MORE?

These rights are set out in the Second payment services Directive OF the (PSD2), the payment accounts Directive and other EU legislation with the objective of making payments safer and more convenient. .

You'll learn more about your rights here. The link provided provides further information on the EU framework for:

• Bank accounts in EU countries: rights and restrictions when opening and using a bank account in another EU country.
• Payments, transfers and cheques: costs and Commission for banking operations between EU countries.
• Mortgage credit: your right when you take a loan to buy a home.
• Insurance products (e.g. life insurance): their purchase from a company located in another EU country.
• Consumer credits and loans: conditions and limits for loans up to EUR 75 000.
• Investment products: your rights when choosing investment products and funds, as well as investment-related insurance policies.

ELECTRONIC PAYMENTS - AVAILABLE TO EVERYONE

Anyone entitled to stay in the EU is entitled to at least a basic account that is free or at a reasonable fee. (The account may be linked to a debit card and must provide the following services: cash crediting and withdrawals, storage, making and receiving payments).

PAYMENTS IN EURO - FOR THE SAME FEE AS LOCAL PAYMENTS

• One euro payment account allows payments to be made across Europe.
• Cross-border payments in euro will cost you the same as local payments in euro...
• ... in addition, as of 15 December 2019, cross-border payments in euro shall be paid as much as local payments in national currency.
• You must pay the same fee for withdrawing the euro from an ATM in another Member State as for withdrawing the money from an ATM outside your bank ATM network.

INCREASED SECURITY, BETTER PROTECTION

• From September 2019, your electronic payments are safer thanks to strong authentication from users. .This is achieved by combining different authentication elements, such as PIN code and finger press U. Contact your payment service provider for more information. .
• In the case of unauthorized payments, for example, if you have a stolen credit card, you cannot be required to cover a self-risk of more than 50 euros (except in cases of gross negligence). You don't have to cover your own risk for unauthorized payments from the moment you inform the bank, or for payments made over the Internet if your payment service provider or bank doesn't provide strong authentication for users. .
• If you do not know the final amount of the card payment in advance (for example, for a car rental or hotel), a certain amount of money for this service can only be blocked with your consent. .
• In the case of direct debit (for example, if you have authorized a company to collect monthly payments from your account), you can challenge an amount that has been wrongly collected within 8 weeks. The time limit for repayment of the amount wrongly collected shall be 10 working days. .

FAIR TARIFFS

• You have the right to know how much, if anything, you have to pay to make payments. 
• Whether in a shop or online, when paying by debit or credit card, traders cannot charge you more than the price shown for the product (i.e. charge extra fees). In certain circumstances (e.g. for certain cards), surcharges may still apply, but they must reflect the real cost to the trader of this payment method. If you think you have been charged an unfair surcharge, for example for an air ticket or a hotel booking, you have the right to contact the competent authority in your country. In Latvia, this is PTAC and FKTK. Other competent authorities in the EU can be found here.

NEW SERVICES

• New technologies now give you access to new, innovative financial services offered by authorised banks and other payment service providers. For example, you can keep track of your finances or shop online without a credit or debit card. Like banks, these innovative payment service providers must be licensed and supervised, and they must keep your data secure.

EU legislation ensures the success of your electronic payments. However, if you have a problem, your bank or payment service provider must deal with your complaint within 15 working days. If you are not satisfied with the solution offered, you have the right to contact your national competent authority - the PTAC and the FCMC.