New Danish Act on Payments Act takes effect on 1 January 2018

– What does that mean for you as a Danske Bank customer?

The new Danish Act on Payments (Betalingsloven) follows from EU Payment Services Directive II (PSD2). The aim of the directive is to increase competition on the payment services market, pave the way for new payment solutions and, not least, improve conditions on the payment services market for the customers.

At Danske Bank, we are happy with the new Danish Act on Payments, as it supports our efforts to continue to develop new and competitive products and solutions to the benefit of our customers.

What does that mean for you as a Danske Bank customer?
First and foremost, you should know that you do not have to do anything. Also, none of the changes will result in higher prices or interest rates

The following are the most important changes:

Cards

In future, you will not have to pay a fee when you use your Mastercard or other cards in shops and for online purchases. This applies throughout the EU.

Consumer protection

There will be added consumer protection when consumers use credit and debit cards. More specifically, the excess payable for other persons’ unauthorised use of a card will decrease from DKK 1,100 to DKK 375. 

International transfers (EU)

Transfers denominated in EUR to and from EU/EEA countries will be executed in one day. If, for example, you pay for a holiday home in Spain in EUR and you pay from your DKK account with conversion into EUR, the payment will be received by the payee at the latest on the next day. 

New payment solutions

In the longer term, an increase is expected in the number of payment services providers on the market, which will enhance competition and thus benefit customers. One example could be a solution that offers you a complete overview of all your payment accounts with multiple banks. 

Updated terms and conditions take effect on 1 January 2018

As a result of the new legislation, we update our terms and conditions for payment services, including 

General conditions – consumers

Various card conditions and insurance conditions

Terms and conditions for Danske eBanking and self-service

 From 1 January 2018, all the new terms and conditions will be available at danskebank.dk/vilkaar.

Q&As about the new Danish Act on Payments

  • Card fee

    Does the fee exemption apply to all cards?
    The fee exemption applies to all cards issued by Danske Bank. There may be cards from other card issuers for which a fee may still be payable.

    Can foreign shops and online shops charge a fee for payment with the card?
    The new rules apply throughout the EU. But if you purchase goods or services outside the EU, you should check the fee before approving a payment.

    What if a shop or the like still charges a card fee?
    The shops are responsible for complying with the new legislation. If you are charged a card fee in connection with a purchase, we recommend that you point out to the shop that this is no longer permitted.

    Who have so far profited from the fee charged for use of payment cards in shops?
    So far, shops have been entitled to charge a fee for accepting payment by card. The shop’s customers have paid the fee. As a minimum, the fee has typically covered the shop’s expenses for receiving payment, for example for the shop’s card payment terminal and the payment card issuer (not the banks, but, for example, Mastercard and Visa). 

    Will the shops not simply pass the card fee on to the customers – meaning that we end up with status quo?
    The shops may choose to add the fee to the prices of their products. However, we expect that competition between shops will make it cheaper than today. 

  • Increased competition on the payment services market

    What is meant by an increase in competition on the payment services market?
    The objective of the EU legislation on which the new Danish Act on Payments is based is to enable more businesses to offer financial solutions. One example could be one overall solution offering you a complete overview of all your payment accounts with multiple banks. 

    This could be offered by both banks and new market players and will increase competition to provide the best solutions to the customers. 

    The legislation enters into force on 1 January 2018, but banks have until the autumn of 2019 to get their systems for handling this ready.

    Must bank customers themselves give their consent to other financial businesses obtaining account details and similar information from their bank? 
    Yes – and you may always withdraw this consent if you change your mind


  • International transfers

    Transfers outside Denmark – why can I now only choose ‘Payer and payee share costs’ under ‘Allocation of costs’?

    This will overall be the cheapest solution, which is why the EU has chosen to make it the standard allocation. It has also previously been Danske Bank’s recommendation to our customers.

    How quickly will account transfers be executed in the EU under the new rules?

    Transfers under EU regulation will be executed in one day. A transfer under EU regulation is the most common type of transfer for personal customers. It is a transfer denominated in euros executed within the EU and the EEA (Norway, Liechtenstein and Iceland).

     

    Example 1:

    If you are to pay for your holiday home in Spain in EUR

    If you pay from your DKK account with conversion into EUR, the payment will be received by the payee at the latest on the next day.

     

    Example 2:

    If you are to pay for hotel accommodation and spa in Poland

    If you pay from your DKK account with conversion into EUR, the payment will be received by the payee at the latest on the next day. If you wish to pay in zloty, it will still take two days before the payee receives the money.

     

    Example 3:

    If you are to pay for something you have purchased online in the UK

    If you pay from your DKK account with conversion into EUR, the payment will be received by the payee at the latest on the next day. If you wish to pay for the same product or service in GBP, it will still take two days before the payee receives the money.

     

    But is the processing time not already one day for payments made from Swedish accounts?
    Yes it is. EUR payments from Swedish accounts are already being processed in one day, even if they have been converted from SEK. In future, EUR payments converted from any EU/EEA currency will also be processed in one day if the payee’s bank is based within the EU/EEA area. 


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