REGULATION OF PAYMENT SYSTEMS

There is no single EU or UK legislative framework for the regulation of payment systems. However, both the EU and UK regimes distinguish between different categories of payment systems, depending on their size, structure and role. This chapter discusses the Eurosystem supervision of payment systems by the European Central Bank and other national central banks, as well as the UK supervisory regimes operated by the Bank of England and the UK Payment Systems Regulator. The chapter also discusses the interchange fee caps and business rules applicable to payment card schemes, issuers and acquirers under the EU Interchange Fee Regulation (IFR). It also covers the non-discriminatory access rules applicable to payment systems under the second EU Payment Services Directive (PSD2).