Electronic payment systems have become integral parts of any business transaction. On the High Street, cashless payment and using using debit and credit cards go without saying, and online, a growing number of alternative payment service providers make paying online safer for customers.
Legal framework for e-payments
The EU Payment Service Directive (PSD) provides the legal framework for e-payments. E-commerce providers need to comply with a number of information requirements, deadlines and liability regulations.
In this context it is important to know that with the modification of the Payment Service Directive (PSD 2), more providers will be subject to the Payment Services Supervision Act (the German Zahlungsdiensteaufsichtsgesetz/ZAG). This act stipulates that companies who provide payment services, i.e. that collect payments on behalf of third parties, or use e-payment/e-wallets themselves need a permission from the Federal Financial Supervisory Authority (the German Bundesanstalt für Finanzdienstleistungsaufsicht/BaFin).
Comprehensive e-payment and mobile payment know-how
We regularly review possible licensing obligations for e-commerce platforms, apply for licences and represent our clients in case of e-payment conflicts with the supervisory bodies. We also advise our clients on using payment services, drafting contracts and highlighting the consumer protection rules that payment service providers have to comply with.
We advise on all legal issues related to digital wallets/e-wallets, virtual credit cards and SMS payments systems (payment via text message), and support you when implementing mobile payment models.