Authorizes The Government To Regulate The Business Of Payment Institutions And The Provision Of Payment Services, As Well As To Define A Framework Of Sanctions In The Context Of The Activity Of Providing Payment Services, Transposing To The Jury Order

Original Language Title: Autoriza o Governo a regular o acesso à actividade das instituições de pagamento e a prestação de serviços de pagamento, bem como a definir um quadro sancionatório no âmbito da actividade de prestação de serviços de pagamento, transpondo para a ordem jurí

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Read the untranslated law here: http://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c316776644756346447397a4c334277624449334f5331594c6d527659773d3d&fich=ppl279-X.doc&Inline=false

1 PROPOSAL of law No. 279/X explanatory memorandum this proposal for legislative authorization Act is intended to authorize the Government to regulate the business of payment institutions and the provision of payment services, as well as to define a framework of sanctions in the context of the activity of providing payment services. The Ordinance, the Government proposes to adopt pursuant to legislative authorization that submits to Parliament, comes to the national legal systems transpose the Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market (hereinafter referred to as Directive). In this way, it is intended to transpose into the internal legal order the new Community framework in the field of payment services, which aims to ensure a level playing field between all the payment systems in the community space and preserve consumer choice in the best conditions of safety, efficacy and cost efficiency. The draft decree-law authorized is organized into five titles, having the essential aspects of the Community system been transposed in titles II and III, in broad agreement with the systematic organization adopted by the directive itself.

Title II governs matters relating to payment service providers, covering matters relating to the business of provision of these services and the conditions of access to and pursuit of the activities of payment institutions, which correspond to the new kind of PSPS introduced by the directive. Among other aspects of the discipline of payment institutions, the following 2 rules on authorisation and registration process, the rules relating to supervision and the provisions that implement the designated Community passport. Title III deals with, on the one hand, the pre-contractual information duties and pós-contratual and, on the other hand, the rules which must conform to the contractual rights and obligations of users and providers of payment services. Specifically, the proposed scheme comes to regulate the activities of payment service providers that are principally engaged in the provision of payment services to users of these services. Are excluded from the scope of the scheme, namely, the payment transactions made in cash given already exists a single market for payments in cash, and payments by paper cheques, since such operations, in view of their nature, cannot be processed as efficiently as other means of payment. That does not affect the condition of any transfer of funds find themselves subject to the provisions of Regulation (EC) No 1781/2006 of the European Parliament and of the Council of 15 November 2006 on information on the payer accompanying transfers of funds. The draft decree-law authorized discriminates against the categories of entities that can legitimately provide payment services. A couple of credit institutions, including electronic money institutions, and the entity who is outsourced the universal postal service, was introduced a new category of payment service providers formed by payment institutions. The conditions for granting and maintenance of authorisation for pursuit of the activities of payment institutions include prudential requirements proportionate to the operational and financial risks undertaken in the pursuit of the activity. The requirements imposed on payment institutions reflect the fact that entities provide a more specialized activity, which entails, therefore, more limited risk and monitoring and control than those inherent to the wide range of activities provided, for example, by credit institutions. So, expressly forbidden to payment institutions accepting deposits of users, only meeting granted 3 use funds received from the users, for the provision of payment services. In the field of granting of credit, payment institutions may grant credit only (in particular through the opening of credit lines or issuing and credit cards) in the case of this be strictly related with payment services. So, just when the credit is granted in order to facilitate payment services, whether short term or for a term not exceeding twelve months, and mainly refinanced using the payment institution's own funds or other funds from the capital markets, can payment institutions be allowed to grant credit. Payment institutions are obliged to adopt measures to ensure segregation between the funds of the customers and their funds, as well as to have adequate internal control mechanisms to comply with the obligations in the fight against money laundering and the financing of terrorism. The draft decree-law authorized comes subject payment institutions accounting standards applicable to credit institutions, imposing, also, the realization of audit of accounts of the respective accounting information. We must also highlight the role the Bank of Portugal of competence for prudential supervision of payment institutions and behavior.

Title III of the draft decree-law authorized comes devote a set of rules to ensure transparency of conditions and information requirements governing payment services. In the exercise of a legislative options provided for in the directive, the degree of transposition come to equate microenterprises to consumers, allowing those entities benefit from the same level of tutelage which the Directive attaches to consumers, in particular as regards information. This scheme follows that the information to be provided to users shall be in proportion to the respective needs and communicated in a consistent format. Is expressly enshrined the right to 4 consumers receive free relevant information prior to be bound by any contract for the provision of payment services. However, reporting requirements applicable to a single payment transaction are different from those applicable to a framework contract that provides for a series of payment transactions. In practice, framework contracts and payment transactions covered by them are more common and significant from an economic point of view than the isolated nature of payment transactions. Therefore, the requirements of prior information about those are quite exhaustive, and should the information be provided on paper or on another durable medium. Payment operations of isolated character, only the essential information should provided by the payment service provider. As usual the payer is present when the payment order, it is not necessary to require that the information be provided on paper or on another durable medium. However, if the consumer so requests, the essential information should be provided on paper or on another durable medium.



At any time during the contractual relationship, the payment service user has the right to receive, at their request, the prior information and the framework contract, on paper or on another durable medium, in order to compare the services and conditions applied by the various payment service providers and, in the event of a dispute, check their contractual rights and obligations. With regard to the implementation of operations, the payment service user has the right to receive basic information on executed payment transactions, without additional charges. Likewise, the subsequent monthly information on the transactions carried out 5 under a framework contract must be provided free of charge. However, in view of the importance of price transparency and the different needs of consumers, the parties may agree in that they are levied charges for additional or more frequent information. In order to facilitate customer mobility, payment service users have the possibility to solve a framework contract, after a year without incurring charges. The notice may not be awake for more than a month when the complaint is made by the payment service user, for a period of less than two months when the is by the provider. The low-value payment instruments are subject to less stringent reporting requirements, which guarantee a level of protection proportionate to the limited risks of these instruments.


With regard to charges, none of the intermediaries involved in the execution of payment transactions should be allowed to make deductions from the amount transferred. However, the beneficiary must be able to enter into an explicit agreement with his payment service provider under which the latter may deduct its charges. However, in order to allow the recipient to verify if the amount due is paid properly, the subsequent information about the payment transaction should indicate not only the total amount of funds transferred but also the amount of any charges. In the case of unauthorised payment transactions, the payment service provider shall repay immediately the user of the amount of the unauthorised payment transaction. In order to encourage the payment service user to notify, without delay, to the relevant provider 6 unjustified, any theft or loss of a payment instrument, thus reducing the risk of unauthorised payment transactions, the user will be solely responsible for a limited amount, except in the case of fraudulent actions or serious negligence on their part. In addition, once you have notified the payment service provider that his payment instrument can be used for a fraudulent use, the user will not be required to bear any additional losses resulting from unauthorised use of that instrument. With regard to lead time, the degree of transposition assigns to the payment service provider of the payer the responsibility for ensuring that the amount of the transaction will be credited to the account of the payee's payment service provider by the end of the first working day following receipt of the payment order. However, if the consumer make a cash deposit in a payment account with the payment service provider and in the currency of that payment account, the payment service provider shall ensure that the amount is available immediately after the time of receipt of the funds and with value date coincident with this moment. The internal transfers and in the absence of any stipulation to the contrary, the sums of money shall be credited to the beneficiary's account on the same day, if the transfer takes place between accounts based on the same payment service provider, being the value date and the date of availability to the time of the claim. The establishment of the liability of the payment service provider for the correct execution of the payment, in particular with regard to the total amount of the payment transaction and the time of execution, and full responsibility for any failure of other parties in the payment chain, to the beneficiary's account. As a result of this responsibility, if not credited the entire amount to the payment service provider of the payee, the payment service provider of the payer shall rectify the payment transaction or without undue delay, refund to the payer the amount corresponding to that operation, without prejudice to any other claims for reimbursement that may be presented 7 pursuant to national law. Finally, appropriate procedures are established for the handling of complaints relating to payment service providers and to ensure the application of effective, proportionate and dissuasive sanctions. Without prejudice to the right of customers to submit an action before the courts, come be a complaint mechanism to the Bank of Portugal and a mechanism for redress, dispute settlement through the rendition accession of the payment service providers to at least two entities empowered to conduct arbitrations. Was heard, on an optional basis, the Bank of Portugal. Must be triggered to consulting the National Council of consumption. So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following proposal of law: article 1 subject-matter of the legislative authorization is granted the Government legislative authorization for: a) regulate the business of payment institutions and the provision of payment services; (b) Establish a system of sanitation) and settlement of payment institutions; c) define the crime of violation of the duty of secrecy in the context of the activities of payment institutions and the supervisory activity of the Banco de Portugal in this area, and d) Define the social ordering and unlawful merely general rules, substantive and procedural in nature, which are necessary to ensure compliance with the legal and regulatory rules governing the activity of provision of payment services. 8 article 2 direction and extent of legislative authorization regarding the limits on the exercise of the activity of providing payment services in the use of legislative authorization conferred by subparagraph (a)) of the preceding article, may the Government establish limits on the exercise of the activity of providing payment services, in the following terms: a) to identify the payment services included under the set and services excluded from the scope of that scheme; b) Book the activity of provision of payment services to legal persons and, within these, only certain categories; c) Require the authorization of the Bank of Portugal to the pursuit of the activity of payment services; d) depend on the exercise of management functions, administration and supervision of payment institutions, as well as the acquisition of qualifying holdings in these institutions, suitability and requirements of professional experience; and) Do depend on registration with the Banco de Portugal the exercise of this activity; f) Do depend on the exercise of this activity of the prudential requirements, verification of organization and conduct, and may be imposed obligations of professional secrecy; g) establish duties regarding segregation of assets between the goods of payment institutions and the assets of their clients; h) Assign to the Bank of Portugal authorised to: 9 i) Adopt rules relating to the exercise of the activity of providing payment services, and may in particular attach organizational requirements, prudential and relating to the reputation and professional experience of the holders of qualifying holdings and of the members of the governing bodies;

II) exercising, in respect of who carries out the function, all the powers which are conferred by its organic law; III) Require institutions to submit any information necessary for the verification of compliance with the arrangements for the provision of payment services; IV) Perform inspections to establishments of the payment service providers; v) issue recommendations and specific determinations to be ironed irregularities detected; vi) enjoy the complaints by users of payment services and vii) Instruct a misdemeanour procedures for violation of mandatory provisions of the access to and exercise of service activities; I) impose requirements of transparency and information in the provision of payment services and j) Define rights and obligations relating to the provision of payment services. Article 3 meaning and extent of legislative authorization regarding the reorganisation and liquidation scheme of the institutions of 10 payments when using the legislative authorisation conferred by article 1 (b)), can the Government set up a sanitation and settlement scheme of payment institutions, as follows: a) Establish the rules applicable to the settlement of payment institutions with headquarters in Portugal; b) establish the rules applicable to dissolution and liquidation of payment institutions with headquarters in Portugal, including branches established in other Member States. c) be used for Faculty of the Banco de Portugal require the Declaration of insolvency if any of the facts referred to in paragraph 1 of article 20 of the code of insolvency and business recovery, approved by Decree-Law No. 53/2004, of March 18, in its current wording. Article 4 direction and extent of legislative authorization regarding the type of crime of violation of the duty of secrecy In use of legislative authorization conferred by article 1 (c)), can the Government define the crime of violation of the duty of secrecy in the context of the activities of payment institutions and the supervisory activity of the Banco de Portugal in this respect in particular, by reference to similar legal provision applicable to existing financial institutions. Article 5 direction and extent of legislative authorization regarding the social ordering and unlawful merely to General rules, substantive and procedural in nature, appropriate to ensure compliance with the legal and regulatory rules governing the activity of providing payment services 1-when using the legislative authorisation conferred by subparagraph (d)) of article 1, can the Government define as offences punishable with fines between € 3 000 to € 1 500 000 or € 1 000 to € 500 000 According to apply the collective entity or natural person, the 11


following offenses: a) the provision of payment services through agents without having been complied with the legal regime on this issue; (b) compliance with legal conditions) relating to Commission third parties of major operational functions; c) Constitution of commercial company whose sole object the provision of services when payment determined by the Bank of Portugal; d) non-compliance with the duty to file; and) violation of rules concerning amendment and termination of framework contracts; f) performing diverse currency payment from that which was agreed between the parties; g) the absence or release of a payment instrument; h) refusal of execution of payment orders; I failure to comply with time limits) of execution, value dates and dates of availability; j) compliance, by payment service providers, the duties relating to the provision of effective and appropriate non-judicial means of dispute settlement complaints and repair; l) the ducts provided for and punished under (a)), b), (d)), f) and (i)) of article 210.º of the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 208/92 of 31 December, in its current wording (RGICSF), when committed in the context of the activities of payment institutions.

2-when using the legislative authorisation conferred by subparagraph (d)) of article 1, can the Government set to 12 offenses punishable with fines between € 10 000 to 5 000 000 € or € 4 000 € 2 000 000, according to apply to collective entity or natural person, the following offenses: a) the provision of accounting information to the Bank of Portugal with non-compliance with the provisions of relevant legislation; b) violation of legal rules on information and communications requirements; c) violating the rules on recovery of charges; d) conducting payment transactions not authorized by the originator, by absence or withdrawal of consent to the implementation of the same; and) the non-compliance with the obligations linked to payment instruments; f) the obligations of reimbursement and payment; g) violation of rules limiting the liability of the payer; h) breach of the obligation to pay the full amount to the beneficiary; I) the non-compliance with the obligations of recovery of funds and payment operations tracking; j) violations of mandatory precepts contained in regulations issued by the Bank of Portugal; l) unauthorized practice by any individuals or entities, the activity of providing payment services; m) exercise, payment institutions, activities not included in your legal object or the provision of payment services which are not included in the authorisation; n) the granting of credit by payment institutions, outside of the conditions and legal limits established; the) use, payment institutions of funds from 13 users of payment for different purposes of executing payment services; p) violation, payment institutions, the duty to use the payment of accounts that hold exclusively for payment transactions; q) performing statutory changes, when not preceded by authorization of the Bank of Portugal; compliance with r) prudential standards, when her serious injury or is likely to occur to the financial stability of the organization concerned; s) failure to comply with the protection requirements of the legally defined funds, including the failure of determinations issued by the Bank of Portugal; t) the ducts provided for and punished in (c)), and), f), (g)), l), m), o), p), q) and r) of article 211 of the RGICSF, when carried out within the framework of the activities of payment institutions. 3-the use of legislative authorization conferred by subparagraph (d)) of article 1, can the Government establish the liability of mere social ordering illegal that typify the title of fraud and negligence, as well as the criminality of the attempt. 4-the Government can establish that the proceeding concerning social ordering, merely unlawful that typify both in administrative phase as in the judicial phase, apply the procedural and substantive rules laid down in special RGICSF and, in the alternative, the conditions of employment of mere social ordering illegal.

5-the Government can establish the disclosure regime, by entity responsible for the supervision of payment institutions and other payment service providers, in their entirety or extract, the decisions to assign responsibility for the practice of contravention regardless of whether such decisions are definitive, with express mention of this fact. 14 6-the Government can establish, for the mere social ordering unlawful typify, application, cumulatively with the main sanctions, of the following penalties: a) publication of the judgment; b) seizure and confiscation of the object of the offence, including the economic product of this, with observance of the provisions of articles 22 to 26 of Decree-Law No. 433/82 of 27 October, in their current wording; c) suspension of the exercise of voting rights allocated to the partners of payment institutions, for a period of 1 to 10 years; d) Inhibition of social positions and functions of the administrative, management, supervisory or management in credit institutions, financial companies and institutions from payment, for a period of six months to three years, in the case of offences referred to in paragraph 1, or of one to ten years, in the case of offences referred to in paragraph 2; and, e) Prohibition, in whole or in part, for a period up to three years, the pursuit of the activity of provision of payment services. 7-the Government can establish that, without prejudice to the provisions of subparagraph (b)) of the preceding paragraph, if twice the economic benefit exceeds the maximum limit of the fine applicable, this is high for that value. Article 6 Duration the present legislative authorization lasts for 180 days.

Article 7 entry into force this law shall enter into force on the day following that of its publication.

Seen and approved by the Council of Ministers of April 30 2009 15 Prime Minister the Minister of Parliamentary Affairs Minister Presidency 16 Thus: in the use of legislative authorization granted by law No .../2009 of ... and pursuant to points (a)) and b) of paragraph 1 of article 198 of the Constitution, the Government decrees the following: Article 1 subject-matter this Decree-Law transposes to the internal legal order the Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market amending directives Nos. 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5 No./EC. Article 2 Legal Regime governing access to the activities of payment institutions and the provision of payment services is approved in annex to this decree-law, which is an integral part, the legal regime governing access to the activities of payment institutions and the provision of payment services. Article 3 amendments to the General system of credit institutions and financial corporations 1-articles 4, 5, 6, 8, 117-and 212.º of the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, and amended by decree-laws Nos 95/246, of September 14, 232/96, of 5 December , 222/99, of 22 June, 250/00, October 13, 285/2001, of 3 November, 201/2002, of 26 September, 319/2002 of 28 December, 252/2003, of 17 October, 145/2006, of 31 July, 104/2007, of April 3, 357-A/2007, of October 31, 1/2008, of 3 January , 126/2008 of July 2008 and 21 211-A/2008, of 3 November, are replaced by the following: ' article 4 [...] 17

1 - […]: a) […]; b) […]; c) payment services as defined in article 4 of the legal regime governing access to the activities of payment institutions and the provision of payment services; d) issue and management of other means of payment, not covered by the preceding paragraph, such as paper cheques, cheques in paper form and letters of credit; e) […]; f) […]; g) […]; h) […]; i) […]; j) […]; l) […]; m) […]; n) […]; o) […]; p) […]; q) […]; r) […]; s) […]. 2 - […]. 18 article 5 [...] Are financial corporations companies other than credit institutions and whose main activity consists in exercising one or more of the activities referred to in point (b)), except leasing and factoring, as well as in (d)) i) of paragraph 1 of the preceding article. Article 6 [...] 1-[...]:) [...]; b) […]; c) […]; d) […]; e) [Repealed]; f) […]; g) […]; h) […]; i) […]; l) […]; m) […]. 2 - […]. 3 - […]. 4 - […]. Article 8 [...] 19 1-[...]. 2 - […]. 3 - […]. 4 - […]: a) [...]; b) […]; c) […]; (d)) the provision of payment services for payment institutions, in accordance with the legal provisions and regulations governing their activity; and) the services are included in the subject of bureaux de change, for payment institutions, in accordance with the legal provisions and regulations governing their activity.


Article 117-the payment institutions, payment institutions are subject to the supervision of the Banco de Portugal in accordance with the legal and regulatory rules governing their activity. Article 212.º [...]-1 [...]:) [...]; 20 b) [...]; c) When the defendant is a natural person, inhibition of social positions and administration functions, direction, management or leadership in credit institution, finance company or institution determined payment or any credit institutions, financial companies or institutions for payment, for a period of six months to three years, in the cases referred to in article 210.º, or from one year to ten years in the cases referred to in article 211; d) […]. 2 - […].» Article 4 Amendment to the legal framework of credit institutions and financial corporations are added to the general scheme of credit institutions and financial corporations article 117-B, with the wording of article 117: ' article 117-B relevant Companies 1-payment systems the Bank of Portugal may subject to your supervision entities relating to exercise or that in fact carrying on an activity especially relevant for the functioning of payments systems, specifying the rules and the obligations applicable to them, provided for in this decree-law to financial corporations. 2-the entities engaged in any activity under the payment systems shall communicate that fact to the Bank of Portugal and all the information that they request. 21 3-for the purposes of paragraph 1, it is considered especially relevant to payment systems, in particular, the management of an electronic network through which to make payments. ' Article 5 amendment to law No. 25/2008, June 5 articles 3 and 24 of the law No. 25/2008 of 5 June, establishing preventive and repressive measures to combat laundering of illicit provenance advantages and the financing of terrorism, is replaced by the following: ' article 3 [...] 1 - […]: a) […]; b) […]; c) […]; d) […]; e) […]; f) […]; g) […]; h) […]; i) […]; l) […]; m) payment institutions. 2 - […]. 3 - […]. 22 4-[...]. Article 24 [...] 1-financial entities, excluding foreign exchange agencies and payment institutions are allowed to allow execution of the duties of identification and due diligence in relation to customers as set out in article 7 and in (a)) c) of paragraph 1 of article 9, a third party, in accordance with the regulations by the respective supervisory authorities When this is: a) a financial institution referred to in paragraph 1 of article 3, established in national territory and that is not an Exchange Office or a payment institution; b) […]. 2 - […].» Article 6 amendment to annex I of Decree-Law No. 156/2005 of 15 September annex I of Decree-Law No. 156/2005 of 15 September, is replaced by the following: ' Annex I [...] 1 - […]. 2 - […]. 3 - […]. 4-Credit Institutions, financial companies, payment institutions and 23 postal service providers with regard to the provision of payment services. 5 - […]. 6 - […]. 7 - […]. 8 - […]. 9 - […].» Article 7 amendment to Decree-Law No. 95/2006, of 29 may, articles 2 and 17 of Decree-Law No. 95/2006, of 29 may, concerning the distance marketing of consumer financial services, are replaced by the following: ' article 2 [...] For the purposes of this Decree-Law: a) [...]; b) […]; c) […]; d) ' financial service supplier ' the credit societies and financial institutions, payment institutions, financial intermediaries in securities, insurance and reinsurance companies, insurance companies and pension fund managers; e) […]. Article 17 [...] 24 1-[...].

2-in cases also be applicable Decree-Law No. [...], implementing Directive No. 2007/64/EC of the European Parliament and of the Council of 13 November on payment services in the internal market, articles 47, 48, 52 and 53 of the said decree-law, take precedence over the provisions on information contained in articles 9, 11 n° 1 , 13, 14, with the exception of subparagraphs (c)) h) of article 15, except for paragraph 1 (a)), b) and (c)) of paragraph 1 and paragraph 2, and article 16, with exception of point (a)) of this decree-law.» Article 8 amendment of law No. 5/2002, of 11 January articles 2, 3, 4, 13 and 14 of Act No. 5/2002, of 11 January, establishing measures to combat organised crime and economic-financial and proceeds to the second amendment to law No. 36/94, of 29 September, shall be replaced by the following: ' article 2 [...] 1-at the stage of investigation, education and trial of cases involving the crimes referred to in article 1 the professional secrecy of the members of the governing bodies of credit institutions, financial companies and payment institutions, their employees and people who they provide service, as well as the secret of officials of the tax administration, give in, if there is reason to believe that their information has interest for the discovery of truth. 2 - […]. 25 3-[...]. 4 - […]. 5-in the case of the defendant in the proceedings or the legal entity, the order provided for in paragraph 2 takes always generic form, covering: the) [...]; (b)) information related to bank accounts or to accounts of payment and related movements that the defendant or legal person holds or co-signer, or in respect of which has powers to carry out movements; c) information concerning financial and banking transactions or payment transactions in which the accused or the legal person are involved; d) […]; e) […]. 6 - […]. Article 3 procedure for the credit institutions, finance companies and payment institutions 1-After the order provided for in the preceding article, the judicial authority or, by delegation, the criminal police body responsible for investigation, request credit institutions, financial companies or institutions for payment information and support documents, or a copy, that is relevant.

26 2-credit institutions, finance companies and payment institutions are obliged to provide the requested elements within: a) [...]; b) […]. 3 - […]. 4 - […]. 5 - […]. 6-credit institutions, financial companies or payment institutions indicate the Attorney General of the Republic a central body responsible for responding to requests for information and documents. Article 4 Monitoring of bank accounts and pay bills 1-control of bank account or payment account requires the respective credit institution or payment institution to report any movements on the account to the judicial authority or criminal police body within 24 hours. 2-control of bank account or payment account is authorized or ordered, as the case may be, by order of the judge, when you have great interest for the discovery of truth. 3 - […]. 4 - […]. 5 - […]. Article 13 [...] 27 1-Who, being a member of the governing bodies of credit institutions, financial companies and payment institutions, their employees or to them paying service, or employee of the tax administration, provide information or give false or misrepresented in the context of orderly procedure in accordance with the provisions of chapter II shall be punished with imprisonment from 6 months to 3 years or a fine of not less than 60 days. 2 - […]. Article 14 [...] 1-Is a misdemeanour punishable by fine of € 750 to € 750 000, non-compliance with the obligations laid down in chapter II on the part of credit institutions, financial companies or payment institutions. 2 - […]. 3 - […]. 4 - […]. 5 - […].» Article 9 shall be repealed: the set Standard) paragraph 4 of article 1 of Decree-Law No. 3/94, of 11 January, concerning the activity of exchange agencies, as amended by Decree-Law No. 298/95, of 18 November and by Decree-Law No. 53/2001, of 15 February. 28 b) Decree-Law No. 41/2000, of March 17, concerning internal and cross-border transfers effected in the currencies of the members States of the European economic area. c) article 10 of Decree-Law No. 143/2001 on the protection of consumers in respect of distance contracts. d) to (j)) of article 35 and article 41 of Decree-Law No. 95/2006, of 29 may, concerning the distance marketing of consumer financial services. e) the notice of the Bank of Portugal no. 3/2001, 7 March 2001. Article 10 transitional provisions 1-Exchange agencies and companies managing or issuers of credit cards, before 25 December 2007, were authorized and recorded in order to provide payment services in Portugal for the purposes of this decree-law may continue its activity in Portugal until 30 April 2011 without the authorization provided for in article 10 of the legal regime governing access to the activities of payment institutions and the provision of payment services in the annex to this Ordinance.


2-During the transitional period, the issuer companies or managers of credit cards continue to be considered as financial companies and be governed by the provisions of the General Regime for credit institutions and financial corporations and on specific legislation applicable to them. 3-after the period set in paragraph 1, companies which have not obtained authorisation are prohibited to provide payment services. 29 Article 11 entry into force this law shall enter into force on 1 November 2009.

30 title I GENERAL PROVISIONS article 1 subject-matter and INTRODUCTORY this Decree-Law regulates the business of payment institutions and the provision of payment services, transposing to the internal legal order the Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market amending the directives Nos. 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5/EC. Article 2 definitions for the purposes of this Decree-Law: (a) ")" home Member State "means one of the following States: i) the Member State in which is situated the registered office of the payment service provider; or ii) if the payment service provider has, under its national law, any registered office, the Member State where it has its central administration; b) "host Member State" means the Member State other than the Member State in which a payment service provider has an agent or a branch or where payment services; c) "payment services", the activities listed in article 4;

d) "payment institutions" means legal persons who have been granted authorisation in accordance with article 10 to provide and execute payment services throughout the community; 31 e) "payment transaction" means an Act, practiced by the payer or by the payee, of depositing, transferring or withdrawing funds, irrespective of any underlying obligations between the payer and the payee; f) "payment system" means a funds transfer system that is governed by formal and standardised arrangements and common rules for the processing, clearing and settlement of payment transactions; g) "Payer" means a natural or legal person who holds a payment account and authorising a payment order from that account, or, where there is no payment account, a natural or legal person who issues a payment order; h) "payee" means a natural or legal person who is the recipient provided the funds that have been the subject of a payment transaction; I) "payment service provider" means the entities listed in article 7; j) "payment service user" means a natural or legal person who uses a payment service as payer or payee or both; l) "consumer" means a natural person who, in payment service contracts covered by this directive, is acting for purposes unrelated to their commercial or professional activities; m) "framework contract" means a contract for the provision of payment services that governs the future execution of individual and successive payment transactions and which may spell out the obligations and conditions for setting up a payment account; n) "funds" means a payment service that involves the receipt of funds from a payer, without any payment accounts creation on behalf of the payer or the payee, for the sole purpose of transferring corresponding amount to a payee or to another payment service provider acting on behalf of the beneficiary, and the receipt of these funds by beneficiary account 32 and its availability to the latter; the) "payment account" means an account held in the name of one or more payment service users which is used for the execution of payment transactions; p) "funds" means banknotes and coins, scriptural currency and electronic money as defined in subparagraph (b)) of paragraph 3 of article 1 of Directive 2000/46/EC; q) "payment order" means any instruction given by a payer or payee to his payment service provider requesting the execution of a payment transaction; r) "value date" means the date of reference used by a payment service provider for the calculation of interest on the funds debited from or credited to a payment account; s) "reference Exchange Rate" means the exchange rate used as basis for the calculation of any Exchange operation, which must be provided by the payment service provider or comes from a publicly available source; t) "authentication" means a procedure which allows the payment service provider to verify the use of a specific payment instrument, including custom security devices;

u) "reference interest rate" means the rate of interest used as the basis of calculation of interest to be charged and should be from a source accessible to the public and which can be verified by both parties to a payment service contract; v) "unique identifier" means a combination of letters, numbers or symbols specified to the payment service user by the payment service provider, the payment service user must provide to identify unequivocally the other payment service user and the payment account 33 in view of a payment transaction; x) "Agent" means a natural or legal person that provides payment services on behalf of a payment institution; z) "payment instrument" means any personalised device or set of procedures agreed between the user and the payment service provider and the payment service user refer to issue a payment order; AA) "means of distance communication ' means any means which can be used for the conclusion of a contract for the provision of payment services, without the simultaneous physical presence of the service provider and the payment service user; BB) "durable medium" means any instrument which enables the payment service user to store information addressed personally to him, so that this information can be queried later for a period of time adequate for the purposes of the information and which allows the unchanged reproduction of the information stored; CC) "Microenterprise", a company that, at the time of conclusion of the contract for the provision of payment services, is a company in accordance with the definition given in article 1 and of paragraphs 1 and 3 of article 2 of the annex to Recommendation 2003/361/EC;

DD) "working day", day in which the payment service provider of the payer or the payment service provider of the payee involved in the execution of a payment transaction is open for the execution of a payment transaction; EE), "direct debit" means a payment service that is to debit the payment account of a payer, the payment transaction initiated by the beneficiary on the basis of the consent given by the payer to the recipient, at 34 the payee's payment service provider or to the payment service provider of the payer itself; FF) "branch", a distinguished establishment that central administration is part of a payment institution, devoid of legal personality and which carries out directly all or some of the operations inherent in the business of a payment institution; all establishments created in the country for an institution with headquarters in another Member State shall be regarded as a single branch; Gg) "group", related companies between themselves pursuant to the commercial companies Code characterizes this type of relationship, regardless of their headquarters are in Portugal or abroad; HH) "relevant operational Function" means the function whose failure or failure can seriously undermine the fulfilment on the part of a payment institution, the conditions for authorization set out in this decree-law, its financial results, its soundness or the continuity of its payment services.

Article 3 scope of application 1-this decree-law shall apply to payment services provided in Portugal by service providers based in Portugal and its agents, staff and branches of service providers based in another Member State. 2 – title III, with the exception of article 84, is only applicable when both payment service providers, or the service provider only, are situated in Portugal or when a provider is situated in Portugal and the other in another Member State of the community. 3-except as provided in article 79, the title III shall apply to payment services 35


made in euro or in the currency of a Member State not belonging to the euro zone. Article 4 Payment Services Are payment services the following activities: a) Services enabling cash deposit on a payment account as well as all the operations necessary for the management of that account; b) services that allow to raise cash from a payment account as well as all the operations necessary for the management of that account; c) execution of payment transactions, including transfer of funds deposited into an account open payment with the payment service provider of the user or another payment service provider: i) execution of direct debits, including one-off nature, ii) execution of payment transactions through a payment card or a similar device, iii) execution of credit transfers , including local clearance orders; d) execution of payment transactions where the funds are covered by a credit line granted to a payment service user: i) execution of direct debits, including one-off nature, ii) execution of payment transactions through a payment card or a similar device, iii) execution of credit transfers, including local clearance orders; and) issue or acquisition of payment instruments; f) sending of funds; g) execution of payment transactions where the consent of the payer to the execution of the payment transaction is communicated through any 36 telecommunications devices, computer or digital, and payment is made to the network operator or the telecommunications or computer system, acting solely as an intermediary between the payment service user and the supplier of goods and services. Article 5 Exclusions this decree-law shall not apply to the following transactions: (a) payment transactions made exclusively) in cash directly from the payer to the payee, without any intermediary; b) payment transactions from the payer to the payee through a commercial agent authorised to negotiate or conclude the sale or purchase of goods or services on behalf of the payer or the payee;

c) physical Transportation professional title of banknotes and coins, including the collection, processing and delivery of the same and re-circulation of banknotes and coins; d) payment transactions consisting in the collection and delivery of cash under unprofessional, in the framework of a non-profit activity or benefit; and cash delivery Services) by the beneficiary to the payer as part of a payment transaction following an explicit request of the payment service user immediately before the execution of the payment transaction through a payment for the purchase of goods or services; f) currency exchange Services, namely, cash operations against cash, when the funds are not held on a payment account; g) payment transactions based on any of the following documents drawn on a payment service provider, with a view to placing funds at the disposal of the payee: 37 i) paper Cheques, governed by the Geneva Convention of 19 March 1931, establishing the uniform law on Cheque; II) paper Cheques similar to those referred to in point (i)) and governed by the laws of the Member States which are not parties to the Geneva Convention of 19 March 1931, establishing the uniform law on Cheque; III) paper-based Drafts governed by the Geneva Convention of 7 June 1930, establishing a uniform law relating to bills of Exchange and promissory notes;

IV) paper-based Drafts similar to those referred to in (iii)) and governed by the laws of the Member States which are not parties to the Geneva Convention of 7 June 1930, establishing a uniform law relating to bills of Exchange and promissory notes; v) paper-based Vouchers; vi) Cheques in paper form. VII) payment Postal Orders in paper form, as defined by the Universal Postal Union; h) payment transactions carried out within the framework of a payment system or securities settlement between settlement agents, central counterparties, clearing houses or central banks and other participants in the system, and payment service providers, on the other, without prejudice to article 39; I) payment transactions related to securities-related services, including the distribution of dividends and income or other distributions, or refund or sale of securities made by persons referred to in paragraph (h)) or by investment firms, credit institutions, bodies of 38 collective investment or asset management companies providing investment services and any other entities allowed to proceed to the custody of financial instruments; j) services provided by technical service providers, which support the provision of payment services without entering the possession at any time, subject to the transfer funds, consisting in particular in the treatment and storage of data, protection services of trust and privacy, data authentication and entities, in providing computer and communication networks or provision and maintenance of terminals and devices used for payment services; l) services based on instruments that can be used to acquire goods or services only in the premises used by the issuer or under a commercial agreement with the issuer on a restricted network of service providers or in respect of a restricted range of goods and services; m) payment transactions executed by means of any telecommunication, digital or computer devices, if the goods or services purchased are delivered to a telecommunications device, computer or digital and are intended to be used by this device, since the operator of telecommunications, computer or digital don't act solely as an intermediary between the payment service user and the supplier of goods and services; n) payment transactions carried out between payment service providers, their agents or branches for its own account; the) payment transactions between a parent undertaking and its subsidiaries, or between subsidiaries of the same parent undertaking, without any intermediary of a payment service provider other than an undertaking belonging to the same group and p) withdrawal of cash Services offered by service providers through automatic teller machines, acting on behalf of one or several issuers of cards and are not party to the framework contract with the customer withdrawing money from 39 payment account , on condition that these providers do not ensure other payment services listed in the annex. Article 6 competent Authority 1 – it is incumbent upon the Bank of Portugal to exercise prudential supervision and behavior under this Ordinance, and shall, in particular: a) Grant authorization for the establishment of payment institutions and withdraw it in the cases provided for by law; b) monitor compliance with the provisions of this Ordinance; c) Issue the regulations deemed necessary for the implementation of its provisions; d) enjoy the complaints by users of payment services; e) initiate administrative offense and apply the appropriate sanctions. 2-in the exercise of its supervisory powers, can the Bank of Portugal, in particular: a) Require payment institutions to submit any information you consider necessary to verify compliance with the requirements of this Ordinance; b) Perform inspections to establishments of payment institutions, as well as those of branches and agents providing payment services under their responsibility and to establishments of third parties to whom they have been committed relevant operational functions relating to payment services; c) to issue recommendations and specific determinations to be remedied the deficiencies detected. 3 – the Bank of Portugal exercises its powers of supervision in relation to payment institutions with headquarters in Portugal, including their branches and 40 agents established abroad.


4 – Bank of Portugal supervises the compliance with the standards of title III by the payment service providers with headquarters in Portugal or established in the country, including branches and agents of authorised payment institutions in other Member States. 5 – article 12 of the general scheme of credit institutions and financial corporations (RGICSF) shall apply, mutatis mutandis, to the Banco de Portugal decisions taken under this decree-law. 6 – article 12 of the RGICSF shall apply to time limits laid down in this decree-law. 7-in the application of antitrust law to payment service providers and their associations, as well as payment systems, are also applicable to article 87 and article 88 of the RGICSF, with the necessary adaptations. TITLE II PAYMENT SERVICE PROVIDERS chapter I General conditions of business and access article 7 payment service providers and exclusivity principle 1 – can only provide the services referred to in article 4 of this decree-law the following entities: the) credit institutions, including electronic money institutions, established 41 in Portugal; b) payment institutions with headquarters in Portugal; c) the entity of universal postal service dealership; d) Portuguese State, autonomous regions, bodies of direct and indirect State Administration, when Act devoid of powers of public authority. and) the Bank of Portugal, when not exert public authority powers. f) credit institutions, including electronic money institutions, and payment institutions based in another Member State of the European Community, in accordance with this decree-law. 2-the entities referred to in article f) of the preceding paragraph may only provide payment services that are authorised to provide in their country of origin. 3-the use of the term "payment institution" is exclusively reserved for these entities, that may include in their business name or use in the course of their activity. 4-payment institutions based in another Member State can use the business name you use in your Member State of origin in accordance with article 46 of the RGICSF, apply with any necessary adaptations. 5-the provisions of article 126 of the RGICSF is applicable, mutatis mutandis, in cases of suspected founded to provide payment for services not enabled. Article 8 payment institutions 1-payment institutions are payment service providers, subject to the regime of this decree-law, having as their object the provision of one or more payment services. 2-payment institutions may still engage in the following activities: 42 a) operational services and closely related ancillary services, including payment, provision of guarantees of execution of payment transactions, foreign exchange services and guard services, storage and processing of data; b) operation of payment systems, without prejudice to the provisions of article 39; c) different Professional Activities the provision of payment services, in accordance with the legal provisions applicable to these activities and d) activities included in the subject of currency exchange agencies, in accordance with the legal provisions applicable to these institutions. 3 – the funds received by payment institutions from payment service users can only be used for the execution of payment services, do not constitute receipt of deposits or other repayable funds within the meaning of paragraph 1 of article 2 of the RGICSF. 4-payment accounts held for payment institutions may only be used for the provision of payment services. 5-payment institutions shall apply, mutatis mutandis, the rules on advertising laid down in article 77 C of RGICSF, as well as the powers conferred to the Bank of Portugal by article 77-D of the same Ordinance. 6-shall apply to payment institutions with headquarters in Portugal the reorganisation scheme of credit institutions established in the RGICSF, with the necessary adaptations.

43 7-the dissolution and the liquidation of payment institutions with headquarters in Portugal, including branches established in other Member States, which have as their sole object the provision of payment services, or activities referred to in (a)), b) and d) of paragraph 2, shall be subject, mutatis mutandis, the procedure set out in chapter II of Decree-Law No. 199/2006 , of 25 October, on the winding-up of credit institutions and financial corporations. 8-payment institutions engaged in the activities referred to in point (c)) of paragraph 2 shall be subject to the code of insolvency and business recovery, with the specialties given in the following paragraphs. 9 – the Bank of Portugal may request the Declaration of insolvency if any of the facts referred to in paragraph 1 of article 20 of the code of insolvency and business recovery. 10-Without prejudice to the obligations of communication to the Bank of Portugal imposed by payment institutions law, the Court is required the Declaration of insolvency informs immediately the Bank of Portugal accordingly for the purposes of eventual withdrawal of authorisation to pursue the activity as a payment institution. 11 – if the authorization is revoked by the Bank of Portugal, the Declaration of insolvency implies the expiry of authorization, and the impact of the Bank of Portugal to exercise in the insolvency proceedings the powers conferred on it by articles 12 and 14 of Decree-Law No. 199/2006 of 25 October.



Article 9 1 credit-payment institutions may grant credit only in the case of this being 44 related to payment services referred to in paragraphs 4, 5 and 7 of article 4, and provided that the following conditions are fulfilled: a) the credit shall be ancillary and granted exclusively in connection with implementation of the payment transaction; b) loans granted in the exercise of the right of establishment and freedom to provide services under articles 23 and 24, shall be repaid in a period not exceeding twelve months, notwithstanding the legal provisions with regard to lending through credit cards; c) credit cannot be granted from the funds received or held for the execution of a payment transaction; d) payment institution shall have at all times own funds appropriate to the volume of loans granted, in accordance with the determinations of the Banco de Portugal. 2-the provisions of this decree-law shall be without prejudice to the legal provisions applicable to consumer credit. 3-payment institutions to grant credit under this article shall communicate to the Central Credit Responsibilities, managed by the Bank of Portugal, the information relating to carrying out operations in accordance with and for the purposes set out in the legislation which governs the centralisation of credit responsibilities.

Chapter II Authorisation and registration of payment institutions and General requirements article 10 1 – provision of payment institutions, with a view to the provision of one or more payment service 45, depends on the authorization grant case-by-case basis by the Bank of Portugal. 2-payment institutions with headquarters in Portugal must meet the following conditions: a) Adopt the form of a public limited company or private limited; b) Have the minimum share capital corresponding to the payment services to be provided, in accordance with article 29; (c)) Have the main and effective registered office of Administration located in Portugal; d) Present solid devices with regard to corporate governance, including a clear organisational structure with clearly defined lines of responsibility, transparent and coherent; e) Organize effective procedures for identification, management, control and reporting of the risks to which it is or may be exposed; f) have adequate internal control mechanisms, including administrative and accounting procedures solids; g) have internal control mechanisms to comply with the obligations in the fight against money laundering and the financing of terrorism, including the provisions on information on the payer accompanying transfers of funds. 3 – also will depend on authorization from the Bank of Portugal to cast enlargement of payment services, among those listed in article 4, that payment institutions already established propose pay. Article 11 application instruction 1-application for authorization shall be accompanied by the following elements: a) draft articles of association or to amend the articles of Association, 46


showing an express reference to payment services, from among those listed in article 4, that the payment institution intends to provide; b) programme of activities, geographic deployment, organizational structure and human, technical and material resources that will be used, including, where appropriate, reference to the agents and branches of the institution, as well as third parties who have been committed, operational functions and the provisional accounts for each of the first three years of activity; c) Declaration of commitment that in the Constitution Act, and as her condition will deposited in a credit institution the amount of minimum capital required in article 29; d) Identity and their evidence of persons who hold, directly or indirectly, qualifying holdings within the meaning of paragraph 7 of article 13 of the RGICSF, as well as the size of their holdings and evidence of their suitability, taking into account the need to ensure the sound and prudent management of a payment institution; and) A description of the procedures intended to ensure the protection of the funds of the payment services users, in accordance with article 32;

f) evidence of the existence of solid devices with regard to corporate governance, including a clear organisational structure with clearly defined lines of responsibility, transparent and coherent, effective procedures for the identification, management, control and reporting of the risks to which it is or might be exposed, and adequate internal control mechanisms, including sound administrative and accounting procedures and devices procedures and mechanisms referred to be complete and proportional to the nature, scale and complexity of the activities of the payment institution; g) evidence of the existence of internal control mechanisms to comply with the obligations in the fight against the laundering of capital 47 and the financing of terrorism, including the provisions on information on the payer accompanying transfers of funds; h) description of how they are organized structures of the applicant, including, where appropriate, a description of the intended use of agents and branches and a description of the arrangements for provision of services by third parties, as well as their participation in national or international payment system; I) evidence of the identity of Directors and persons responsible for the management of the payment institution and, where appropriate, the persons responsible for the management of payment services activities of the applicant, as well as proof that people are fit and have the appropriate knowledge and skills required by the Member State of origin of the applicant to perform payment services; j) where appropriate, the identity of statutory auditors and audit firms within the meaning of [Directive 2006/43/EC, concerning the annual accounts and consolidated accounts]; l) address of Head Office of the payment institution. 2-for the purposes of paragraph 1(e)), f) and h) of the preceding paragraph, the applicant shall provide a description of the mechanisms created in terms of auditing and organization with a view to taking all reasonable steps to protect the interests of its users and to ensure continuity and reliability in the performance of payment services. 3-the provisions of paragraphs 2 to 4 of article 17 of the RGICSF, mutatis mutandis, with regard to the information to be submitted by the legal persons that are holding qualifying holdings in institution building. Article 12 the reputation and professional experience of the members of the management, administration and inspection 48 1-applies the provisions of articles 30 to 32 of RGICSF, mutatis mutandis, with regard to the reputation and professional experience of the members of the administrative and supervision of payment institutions. 2-as regards the payment institutions exercising also the activities referred to in point (c)) of paragraph 2 of article 8, the requirements regarding professional experience only apply to persons who fit ensure the day-to-day management of payment activity. Article 13 Separation of activities Banco de Portugal may determine, as a condition for granting the authorization, the Constitution of a company that has as its sole object the provision of payment services listed in article 4, if the activities beyond the performed payment services or the exercise by the applicant from adversely affecting or may affect: the financial soundness of the institution); or (b)) the appropriate exercise of supervisory functions by the Bank of Portugal. Article 14 1 Decision – the decision on the application for authorisation shall be notified to the interested parties within three months of receipt of the application or, where applicable, the date of receipt of the additional information requested from applicants, but no later than 12 months from the date of original delivery of the application. 2 – applicable to refusal of authorisation provided for in article 20 of the RGICSF. 3-the refusal of authorisation must be justified. Article 15 amendments 49 1-are subject to prior authorisation of the Bank of Portugal changes of society concerning the following aspects: a) business name; (b)); c) location of the headquarters, unless the change occurs within the same municipality or County borderline; d) social Capital, in the case of reduction; and) creation of classes of shares or modification of the existing categories; f) structure of management or supervision; g) Limitation of the powers of the administrative or supervisory body; h) Dissolution. 2-the other amendments shall be subject to immediate communication to the Bank of Portugal. Article 16 lapse and revocation of authorisation 1-applies the caducity of authorisation of payment institutions in accordance with article 21 of RGICSF, constituting also the expiry suspension of business for more than 6 months. 2 – is applicable to the withdrawal of authorisation of payment institutions mutatis mutandis the provisions of articles 22 and 23 of the RGICSF, considering still grounds for withdrawal of authorisation the condition of the institution pose a threat to the stability of the payment system by the fact that pursue the activity of providing payment services. 3 – Is equally grounds for withdrawal of authorisation the serious breach of the duties provided for in law No. 25/2008 of 5 June, establishing preventive and repressive measures to combat laundering of illicit provenance advantages and the financing of terrorism. 50 article 17 merger, Division and voluntary dissolution shall apply the provisions of article 35 and in paragraph 1 of article 35 of the RGICSF, with the necessary adaptations, to the merger, SCISSION and voluntary dissolution of payment institutions. Article 18 1-Agents payment institutions can provide payment services through agents, assuming responsibility for all the acts committed by them. 2 – If you wish to provide payment services through agents, payment institutions with headquarters in Portugal shall notify in advance to the Bank of Portugal the following information: a) name and address of the agent; b) description of the internal control mechanisms used by the agent to comply with the provisions of law No. 25/2008 of 5 June, establishing preventive and repressive measures to combat laundering of illicit provenance advantages and the financing of terrorism; c) identity of the persons responsible for the management of the activities of agents and evidence of their suitability and competence. 3 – Received the information listed in the preceding paragraph, the Bank of Portugal carries out registration of the agent in the special register in accordance with articles 20 and 21, unless you consider that these are incorrect, in which case you will be able to take measures to verify the information. 4 – the Bank of Portugal will refuse the entry of the agent in the register, after taken the measures referred to in the preceding paragraph, consider that the correction of the information provided pursuant to paragraph 2 was not sufficiently demonstrated. 5-payment institutions shall ensure that agents acting on their behalf inform thereof 51 users of payment services. Article 19 provision of services by third parties 1 – payment institutions can make to third parties operating functions relating to payment services.


2 – the Bank of Portugal must be previously informed of the intent to commit the third party operational functions relating to payment services. 3-the payment institution to make to third parties the performance of relevant operational functions should safeguard the quality of internal control and ensure that the Bank of Portugal is able to verify the compliance with all applicable legal provisions. 4-the Commission relevant operational functions to third parties must comply with the following conditions: a) the responsibilities of senior management may not be committed to third parties; b) the institution is responsible for compliance with the provisions laid down in this Decree-Law; and (c)) the institution remains obliged to comply with the conditions of authorisation. Article 20 subject to record 1-payment institutions may not start your activity while not entered in special register at the Bank of Portugal. 2-the registration will cover all institutions authorised to provide payment services as well as their agents and branches. 52 article 21 Elements subject to registration and refusal of registration 1-applies the provisions of articles 65 to 72 of the RGICSF, with the necessary adaptations, to the register of payment institutions with headquarters in Portugal and their respective agents and affiliates.

2-the register of payment institutions should also include elements relating to payment services that the institution is authorized to provide. 3 – are publicly accessible and regularly updated on the website of the Bank of Portugal the following elements: a) the identification of authorised payment institutions, their agents and branches; and b) payment services within the respective authorization. Article 22 contentious Media resources of the Bank of Portugal taken decisions under this chapter shall apply, mutatis mutandis, the provisions of article 12 of the RGICSF. Chapter III right of establishment and freedom to provide services article 23 1 General requirements – the payment institution with headquarters in Portugal wishing to provide payment services for the first time in another Member State, in particular by establishing branch or hiring agent, must give prior notification to the Bank of Portugal, specifying the following elements: 53 a) Country where it intends to establish branch hire an agent or, in General, provide payment services; b) name and address of the payment institution;

c) organisational structure of the branch or of the agent, when the latter is not a natural person, and likely the same address in the host Member State; d) names of the persons responsible for the management of the branch or of the agent, in accordance with the preceding paragraph, and evidence of their suitability and competence; and) type of payment services to be provided on the territory of the host Member State. 2-within one month of receipt of the information referred to in the preceding paragraph, the Bank of Portugal must report them to the competent authorities of the host Member State. 3-In case of modification of the elements provided for in paragraph 1 (b))) of paragraph 1, the payment institution shall notify, in writing, to the Bank of Portugal and to the competent authority of the host Member State. 4-To control the requirements laid down in paragraph 1, the Bank of Portugal will be able to carry out on-site inspections in the host Member State or to delegate its implementation, in accordance with paragraph 4 of article 34 article 24 Register nothing opposes the entry of the branch or of the agent in the register in accordance with the provisions of article 21, the Bank of Portugal shall inform in advance the competent authorities of the host Member State of its intention to register the branch or agent and takes into account the opinion of these entities.

54 article 25 refusal or cancellation of registration in the case of the competent authorities of the host Member State to communicate to the Bank of Portugal who have reasonable grounds to suspect that has been or is being carried out an operation or an attempt of money laundering or terrorist financing within the meaning of Directive 2005/60 No./CE, related to the proposed hiring an agent or a branch or that this hiring or opening can increase the risk of money laundering or terrorist financing, the Bank may refuse the registration of the branch or of the agent, or cancel it, if he has already been carried out. Article 26 in Portugal of payment institutions based in other Member States 1-payment institutions authorised in another Member State of the European Union, which did not qualify for the derogation provided for in article 26 of Directive 2007/64/EC, may provide payment services in Portugal, either by opening branches or the hiring of agents, either under the freedom to provide services provided that such services are covered by the authorisation. 2 – If the Bank of Portugal has reasonable grounds to suspect that has been or is being carried out an operation or an attempt of money laundering or terrorist financing within the meaning of Directive 2005/60 No./CE, related to the project for employment of an agent or of opening a branch in Portuguese territory, or that such hiring or opening can increase the risk of money laundering or of the financing terrorism, the bank informs the competent authorities of the Member State of origin.

55 3-payment institutions authorised in another Member State will be able to start its activity in Portugal, as soon as the Bank of Portugal receives the competent authority of the Member State of origin the communications provided for in paragraph 2 of article 23 and article 24, with the specification of the elements that fit. 4-In case of modification of the elements provided for in paragraph 1 (b))) of article 23, the payment institution shall notify, in writing, to the Bank of Portugal and to the competent authority of the Member State of origin. 5-The servants of the institutions referred to in paragraph 1 shall inform its customers about the institution on whose behalf they act. 6-in the exercise of its activity in Portugal, the institutions mentioned are subject to the provisions dictated by reasons of general interest. Article 27 subsidiaries and branches in third countries the establishment of branches and subsidiaries in a third country are applicable, respectively, articles 42 and 42A of the RGICSF, with the necessary adaptations. Chapter IV Supervision of payment institutions section 1 General Rules article 28 prudential Principle payment institutions shall apply the funds available to ensure at all times adequate levels of liquidity and solvency.

Article 29 minimum Capital 1-payment institutions with headquarters in Portugal must, at all times, own capital not less than 56: EUR 20000) the institutions which provide only the service of payment indicated in article 4 (f)); (b) 50 000 EUR) the institutions providing the payment service indicated in subparagraph (g)) of article 4; c 125 000 EUR), for institutions that provide any of the payment services listed in point (a))) of article 4. 2-the minimum share capital referred to in the preceding paragraph is made up of the elements defined in (a)) and (b)) of article 57 of Directive 2006/no. 48/EC. 3-payment institutions should set up special reserves to strengthen equity or to cover losses that the profit and loss account cannot support. Article 30 – 1 own funds own funds of the payment institution shall not be less than the value of the minimum capital required under the previous article or the amount resulting from application of the following article, whichever is higher. 2-the rules on the composition of own funds of the payment institutions are those laid down by the notice of the Bank of Portugal. 3-If the decrease of capital below the limit set in paragraph 1, the Bank of Portugal may, where the circumstances justify it, allow the institution a limited period for which regulate the situation. 4-If the payment institution belongs to the same group of another payment institution, credit institution, insurance company or Finance Corporation is not allowed the use of multiple elements eligible for own funds. 5-the multiple use of elements eligible for own funds is also not permitted in relation to payment institutions engaged in other activities 57


the provision of payment services listed in article 4 6 – When a payment institution carries out other activities other than the provision of payment services listed in article 4, which are also subject to capital requirements, the payment institution shall respect Additionally such requirements. Article 31 1 capital requirements – the own funds of the payment institutions shall, at all times, be equal to or greater than the amount resulting from the application of one of the three methods described in the annex to this Ordinance. 2-for the purposes of the preceding paragraph, the Bank of Portugal set the method to be applied by each institution. 3-based on an assessment of risk management procedures, the risk of data loss and internal control mechanisms, the Bank of Portugal may require or allow, respectively, that the payment institution holds a capital amount higher or lower than in 20% of the amount which would result from the application of the method defined in accordance with the preceding paragraph.

4-Notwithstanding the preceding paragraphs and articles 29 and 30, the Bank of Portugal may adopt the procedures set out in article 6, in order to ensure that payment institutions affect the operation of its activity of providing payment services a sufficient level of own funds, in particular when the activities referred to in paragraph 2 of article 8 harm or may harm the financial soundness of the payment institution. Article 32 58 1 funds protection requirements-payment institutions shall ensure the protection of the funds that have been received from payment service users or through another payment service provider for the execution of payment transactions in accordance with one of the following: a) Assuring that the funds: (i)) are not at any time aggregated with the funds of any natural or legal person distinct from payment service users on whose behalf the funds are held; and ii) are deposited in a separate account in a credit institution or invested in safe assets, low-risk and liquid, in cases where these funds are still held by the payment institution, without being delivered to the payee or transferred to another payment service provider by the end of the business day following the month in which they were received; and iii) are segregated in accordance with the provisions of paragraph 3 of this article, in the interests of users of the service concerned, payment of the claims of other creditors, in particular in case of dissolution of the payment institution. b) Ensuring that funds are covered by a policy of insurance or other security considered, provided by an insurance company or credit institution which does not belong to the same group of payment institution itself, for an amount at least equivalent to that which would be separated in the absence of such policy of insurance or other security shall be payable in the case of the payment institution does not fulfil its financial obligations. 59 2-for the purposes of iii. (a)) of paragraph 1, in case of dissolution of the payment institution, the amounts delivered by users of payment services cannot be seized for the mass in liquidation, watching their holders the right to claim their separation or refund. 3-If a payment institution to receive funds where a fraction of these will be used in future payment transactions, being the remaining amount used for miscellaneous services payment services, part of the funds to be used for future payment transactions shall also be subject to the requirements laid down in paragraph 1. 4-If the proportion referred to in the preceding paragraph is variable, or cannot be determined in advance, the payment institution shall ensure that the requirements of protection of funds on the basis of a representative number of payment institution assume will be used for payment services, since this representative fraction can be reasonably estimated based on historical data.

5-Portugal Bank assesses the adequacy of assessments and procedures implemented by the payment institution in compliance with the provisions of this article, and may determine any changes or adjustments that deems necessary. 6 – the Bank of Portugal defines, by notice, the other technical rules and procedures necessary for the application of this article, in particular what is meant by assets safe, low-risk and liquid, for the purposes of point (ii))) (a) of paragraph 2, as well as the essential conditions of the insurance policy or equivalent and the terms and procedures of the respective drive for the purposes of paragraph b) of paragraph 2. Article 33 accounting and statutory audit 60 1-with the exception of payment institutions to provide any of the payment services listed in article 4 and, at the same time, engaged in other activities under subparagraph (c)) of paragraph 2 of article 8, shall apply to payment institutions standards laid down by the notice No. 1/2005 the Bank of Portugal, to credit institutions and financial corporations. 2-for the purposes of supervision, payment institutions shall provide the Bank of Portugal, on terms to be defined by instruction, separate accounting information for payment services listed in article 4 and to the activities referred to in paragraph 2 of article 8 3 – the accounting information referred to in the preceding paragraph shall be subject to audit or report of legal drafting certification by statutory auditor or audit firm accounts.

4-The statutory auditors or audit firms to the service of a payment institution and the external auditors who, by legal requirement, submit to a payment institution audit services shall apply the provisions of article 121 of the RGICSF. 5 – the Bank of Portugal may require special audits by an independent entity designated by itself, at the expense of the institution of payment audited. SECTION II Supervision of the Banco de Portugal article 34 supervision procedures 1 – the Bank of Portugal shall ensure compliance with the provisions of this title, exercising the powers laid down in article 61 6 and adopting the measures specifically provided for in other provisions. 2-checking if any of the circumstances referred to in article 13, the Bank of Portugal you can also determine, at any time, that the payment institution subject to your supervision constitutes a commercial society which has as its sole object the provision of payment services listed in article 4, within that for this purpose it is fixed. 3 – apply subsidiarily to the supervision of payment institutions mutatis mutandis, the provisions of RGICSF, in particular the provisions of articles 120, 127 and 128 of this regime.

4 – the Bank of Portugal may carry out on-site inspections on the territory of the host Member State or to delegate this task in the competent authorities of that Member State, and in another case after notifying such entities. 5 – in the exercise of their functions of prudential supervision, the Bank of Portugal shall collaborate with the competent authorities of the host Member States and exchange with them all the essential information and relevant, especially in the case of infringements or suspected infringements by an agent, a branch or an entity to whom they have been committed operational functions to this end, if requested, all relevant information and, on their own initiative all essential information. Article 35 payment institutions authorised in other Member States 1-payment institutions authorised in other Member States and provide services in Portugal, subject to the supervision of the competent authorities of the countries of origin, are not subject to the prudential supervision of the Bank of Portugal. 62 2 – it is incumbent upon the Bank of Portugal cooperate with the competent authorities of the home Member State with regard to the supervision of branches, agents and third parties with operational functions, which provide services in Portugal under the supervision of payment institutions mentioned in the preceding paragraph. 3-in order to perform the functions of prudential supervision under, the competent authorities of the home Member State, after being informed of the fact that the Bank of Portugal, may carry out on-site inspections in Portuguese territory. 4-at the request of the competent authorities of the home Member State, the carrying out of the inspections referred to in the preceding paragraph may be delegated to the Bank of Portugal.


5 – the Bank of Portugal Exchange with the competent authorities of the home Member State all the essential and relevant information, in particular in the case of infringements or suspected infringements by an agent, a branch or an entity to whom they have been committed, and operational functions for this purpose communicate, if requested, all relevant information and , on its own initiative all essential information. 6-in the event of the withdrawal or lapse of authorisation of payment institution in the home Member State shall apply article 47 of RGICSF, with the necessary adaptations. 7-the preceding paragraphs are without prejudice to the obligations to the Bank of Portugal and the competent Portuguese authorities, pursuant to law No. 25/2008 of 5 June, and of Decree-Law No. 125/2008, of 21 July, laying down measures necessary for the implementation of Regulation (EC) No 1781/2006, in respect of the supervision and control of the compliance with the standards set out in these decreto-leis. Article 36 63 File Without prejudice to any other applicable legal provisions, in particular in the context of the prevention of money laundering or terrorist financing, payment institutions must keep on file the records of all payments and all other documentation related to the provision of payment services for the minimum term of five years.

Article 37 professional secrecy and Cooperation 1-the system of professional secrecy provided for in articles 78 and 79 of the RGICSF shall apply to payment institutions mutatis mutandis. 2 – the Bank of Portugal articles 80 to 82 of the RGICSF, with the specifics given in the following paragraphs. 3-While competent supervisory authority for the purposes of this Ordinance, the Bank of Portugal will cooperate and exchange information with supervisory authorities of other Member States and, where appropriate, with the European Central Bank and the national central banks, as well as with other competent authorities designated under Community or national legislation applicable to payment service providers. 4 – the Bank of Portugal may also exchange information with the following entities: a) the public authorities responsible for the supervision of the payment and settlement systems; (b)) Other relevant authorities designated under Directive No. 95/46/EC, Directive No. 2005/60/EC and other community legal decreto-leis applicable to payment service providers, such as legislation applicable to the protection of individuals with regard to the processing of personal data, as well as money laundering and the financing of terrorism 64. Article 38 violation of the duty of secrecy Without prejudice to other penalties, the breach of the duty of secrecy is punishable under the Penal Code.

Chapter V common provision Article 39 rules on access to payment systems 1 – the rules concerning access to payment systems by contractors authorised or registered payment which is a legal person must be objective, non-discriminatory and proportionate and should not impede access to an extent which goes beyond what is necessary in order to prevent specific risks, such as the risk of liquidation , operational risk and business risk, and to safeguard financial stability and payment systems operating. 2-the provisions referred to in the preceding paragraph cannot enforce payment service providers, payment service users or other systems of payment: the) restrictions in respect of effective participation in other payment systems; b) discrimination between authorised payment service providers or between registered payment service providers in relation to rights, obligations or advantages granted to participants or c) restrictions based on corporate form adopted. 3-the preceding paragraphs shall not apply to: 65 a) payment systems designated under the Decree-Law No. 221/2000, of 9 September;



b) payment systems consisting exclusively of payment service providers belonging to a group composed of entities that have capital links to check out the one of the entities connected with effective control over the other; c) payment systems where a sole payment service provider (be it a singular entity or a group): i) Acts or can act as the payment service provider for both the payer and the beneficiary holds the sole responsibility for management of the system; and ii) Licenses other payment service providers to participate in the system, and the latter the right to negotiate commissions among themselves with regard to the payment system although they may establish their prices for originators and recipients. 4 – it is incumbent upon the Bank of Portugal, under the powers conferred on it by its organic law, ensure the application of this article, without prejudice to the powers of the competition authority.

66 TITLE III PROVISION and USE of PAYMENT SERVICES Chapter 1 transparency of conditions and information requirements for payment services section 1 General rules article 40 1 – scope this chapter applies to payment transactions of isolated nature, framework contracts and payment transactions covered by them. 2-the provisions of this chapter shall apply to micro-enterprises in the same way as to consumers. 3 – When the payment service user is not a consumer, the parties may depart from all or part of the provisions of this chapter. 4-this chapter shall apply without prejudice to the provisions of Decree-Law No. 359/91, of 21 September, as amended by Decree-Law No. 101/2000 of June 2; the legislation on the conditions for granting of consumer credit is applicable in so far as they contain provisions not provided for in this chapter. Article 41 other provisions of national law 1 – the provisions of this title shall be without prejudice to any provisions containing supplementary requirements regarding pre-contractual information. 67 2-in the situations covered by the Decree-Law No. 95/2006, of 29 may, articles 47, 48, 52 and 53 of the present Decree-law take precedence over the provisions of articles 9, 11, 13, paragraph 1, 14, with the exception of subparagraphs (c)) to (h)), article 15, except for paragraph 1 (a)), b) and (c)) of paragraph 1 and paragraph 2, and article 16 with the exception of point (a)), of the said decree law. Article 42 language and transparency of information all information and conditions to be provided by the payment service provider to the payment service user under this decree-law shall: a) be transmitted in Portuguese language, except where it is agreed between the parties the use of another language; b) Be set out in easily understandable terms and in a clear and intelligible; and c) Allow easy reading by a reader of average visual acuity, in cases that are provided through paper or another durable medium. Article 43 information Charges 1-the payment service provider shall not charge the payment service user costs related to the provision of information provided for in this chapter. 2 – the service provider and the payment service user may agree on charges for providing additional or more frequent information, or transmission by means of communication other than those specified in the framework contract, provided that the provision or transmission to occur at the request of the payment service user.

3-in the cases provided for in paragraph 2, the charges must be suitable and correspond to the costs actually incurred by the service provider. 68


Article 44 burden of proof with regard to information requirements rests with the payment service provider to prove that fulfilled the information requirements laid down in this title. Article 45 derogation from information requirements for low value payment instruments and electronic money 1-in the case of payment instruments which, according to the framework contract, concern only individual payment transactions not exceeding EUR 30 or which have a limit of EUR 150 or store funds which allow never exceed 150 EUR : a) by way of derogation from articles 52, 53 and 57, the payment service provider is only obliged to provide the originator information on the main features of the service, including the way in which the payment instrument can be used, liability, charges and other significant information required to make an informed decision as well as an indication of the sources where in an easily accessible, can be obtained from any other information and conditions specified in article 53; b) Can be agreed that, by way of derogation from article 55, the payment service provider does not have to propose any changes to the conditions of the framework contract as referred to in paragraph 1 of article 55; c) it may be agreed that, by way of derogation from articles 58 and 59, after the execution of a payment transaction: i) the payment service provider provides or makes available only a reference enabling the service user to identify the payment transaction, the amount and the respective charges or, in the case of several payment transactions of the same kind made to the same payee 69 , a unique reference ID of the set of these transactions, its total amount and charges; II) the payment service provider is not obligated to provide or make available the information referred to in the previous paragraph if the payment instrument is used anonymously or if for any other reason, the payment service provider is not technically in a position to do so; However, the payment service provider shall provide the payer to check the amount of accumulated funds. SECTION II payment transactions of an isolated article 46 1 – scope this chapter applies to payment transactions of isolated nature not covered by a framework contract. 2-If a payment order for a payment transaction from isolated character is transmitted through a payment instrument covered by a framework contract, the payment service provider is not required to provide or make available information that has already been or should be communicated to the payment service user pursuant to a framework contract with another payment service provider. Article 47 General information concerning pre-contractual payment operations of isolated nature 1-the payment service provider shall provide the information and conditions specified in article 48 to the payment service user before this be bound by a contract or proposal for provision of payment service of isolated character. 70 2-the payment service provider shall inform the payment service user that, at the request of, the provision of information and conditions must be made on paper or on another durable medium. 3-If the payment service contract in isolated character has been concluded at the request of the payment service user using a means of distance communication which does not enable the payment service provider to comply with the provisions of paragraphs 1 and 2, the latter must comply with the obligations established immediately after the execution of the payment transaction. 4-the obligations laid down in paragraphs 1 and 2 may be fulfilled by delivery of a copy of the draft contract of payment service of isolated nature or the draft payment order including the information and conditions specified in article 48 article 48 information and conditions for the payment transactions of isolated nature 1 – payment service providers shall provide or make available to the payment service user following information and conditions: a) specification of the information or unique identifier to be provided by the payment service user in order for a payment order can be executed in a proper manner; b) the maximum period of implementation applicable to payment services; c) all charges payable by the user to the payment service provider and, where applicable, a breakdown of the respective amounts; d) where applicable, the effective exchange rate or the reference exchange rate to be applied to the payment transaction. 2-where applicable, any other relevant information and conditions specified in article 53 shall be made available to the payment service user in an easily accessible form. 71 article 49 information to be provided to the payer after receipt of the payment order Immediately after receipt of the payment order, the payment service provider of the payer shall pay this or put at its disposal, in accordance with article 42 and paragraph 2 of article 47 the following information: a) A reference enabling the payer to identify the payment transaction and where appropriate, information relating to the payee; b) the amount of the payment transaction in the currency used in the payment order; c) the amount of any charges for the payment transaction that the payer should be paid and, where appropriate, their discrimination; d) where applicable, the exchange rate used in the payment transaction by the payment service provider of the payer, or a reference to the same, if different from the resulting rate) (d) of paragraph 1 of article 48, as well as the amount of the payment transaction after that currency conversion; and e) the date of receipt of the payment order. Article 50 information to be provided to the payee after execution of the payment transaction immediately after the execution of the payment transaction, the payment service provider of the payee shall pay this or put at its disposal, in accordance with paragraph 1 of article 47, the following information: a) the reference enabling the payee to identify the payment transaction and where appropriate, the payer, and any information transmitted in connection with the payment transaction; (b)) the amount transferred in the currency in which the funds are made available to the payee; 72 c) the amount of any charges for the payment transaction to the payee should be paid and, where appropriate, their discrimination; d) where applicable, the exchange rate used in the payment transaction by the payee's payment service provider, as well as the amount of the payment transaction before that currency conversion; and e) the credit value date. SECTION III framework contracts article 51 scope this section applies to payment transactions covered by a framework contract.

Article 52 General information 1 – at the payment service provider shall provide the information and conditions specified in article 53 the payment service user before this be bound by a framework contract, or by a proposal for a framework agreement. 2-the communication must be made on paper or on another durable medium. 3-If the framework contract has been concluded, payment at the request of the payment service user using a means of distance communication which does not enable the payment service provider to comply with the provisions of paragraph 1, the latter must comply with the obligations laid down in paragraph 1 immediately after the conclusion of the framework contract. 4-the obligations laid down in paragraph 1 may also be fulfilled by delivery of a copy of the draft framework contract including the information and conditions 73


specified in article 53 article 53 information and conditions must be provided to the payment service user the following information and conditions:) with regard to the payment service provider: i) the name of the payment service provider, the geographical address of its head office and, where applicable, the geographical address of its agent or branch in Portugal as well as any other addresses, including your e-mail address, useful for communication with the payment service provider; and ii) details of the competent supervisory authorities and to the register provided for in article 20 or any other relevant public register of authorisation of the payment service provider, as well as the registration number or other equivalent identification in that register; (b)) regarding the payment service: i) A description of the main characteristics of the payment service to be provided; II) specification of the information or unique identifier to be provided by the payment service user in order for a payment order can be conveniently performed; III) the form and procedures for communication of consent to execute a payment transaction and withdrawal of this consent in accordance with articles 65 and 77; IV) the reference to the time of receipt of a payment order as defined in article 75, and, if it exists, the time-limit set by 74 payment service provider; v) the maximum applicable to the provision of payment services; and vi) If there is possibility to conclude an agreement on spending limits for the use of the payment instrument, in accordance with paragraph 1 of article 66; (c)) regarding the charges, interest and exchange rates: i) all charges payable by the payment service user to the payment service provider and, where applicable, a breakdown of the respective amounts; II) where applicable, the interest and exchange rates to be applied or, if to be used interest rates or the Exchange method of calculating the effective interest, as well as the relevant date and index or base for determination of this interest rate or exchange rate of reference; and (iii)) if agreed, the immediate application of changes in the interest rate or exchange rate of reference and reporting requirements relating to changes in accordance with paragraph 4 of article 55; d) As to the statement: i) where appropriate, the means of communication, including the technical requirements of the equipment of the payment service user, agreed between the parties for the transmission of information provided for in this directive; II) forms of provision or provision of information pursuant to this directive and their frequency; III) the language or languages in which the contract is to be concluded and to process communications during the contractual relationship; and 75 iv) the right of the payment service user to receive the terms of the framework contract and information and conditions in accordance with article 54; and preventive measures) and amendment: i) where applicable, a description of the measures that the payment service user should take to preserve the security of payment instruments, as well as how to notify the payment service provider for the purposes of point (b)) of paragraph 1 of article 67; II) if agreed, the conditions under which the payment service provider may reserve the right to block a payment instrument in accordance with article 66; III) the liability of the payer in accordance with article 72, in particular the information concerning the amount concerned; IV) shapes and the period available to the payment service user to notify the payment service provider of any unauthorised or incorrectly executed operation, in accordance with article 69, as well as the liability of the payment service provider for unauthorized transactions, in accordance with article 71; v) the liability of the payment service provider for the execution of payment transactions in accordance with article 86 and 87; and vi) the conditions for refund in accordance with articles 73 and 74; f) regarding amendments and termination of framework contract: i) if agreed, information that the payment service user has agreed to the change of the conditions pursuant to article 55, unless you have notified the payment service provider that does not accept it before the date of entry into force of the proposed 76; II) the duration of the contract; and iii) the right to the payment service user to terminate the framework contract and any agreements relating to the complaint, in accordance with paragraph 3 of article 55 and article 56; g) for repair: i) Any contractual clause on the law applicable to the framework contract and the competent court; and ii) complaint and redress procedures available to the Court the payment service user pursuant to articles 92 and 93 article 54 access to information and the conditions of the framework contract in the course of the contractual relationship, the payment service user has the right to receive, at their request and at any time, the terms of the framework contract as well as the information and conditions specified in article 53, on paper or on another durable medium. Article 55 Amendment of the conditions of the framework contract 1-any alteration of the framework contract or the information and conditions specified in article 53 should be proposed by the payment service provider, in accordance with article 52, and at the latest two months before the proposed date for its implementation. 2 – if applicable in accordance with point (i)) f (a)) of article 53, the payment service provider shall inform the payment service user that believes that the latter accepted these changes if you have not notified the payment service provider that does not accept them before the date proposed for the entry into force 77. 3-in the case referred to in paragraph 1, the payment service provider must also specify that the payment service user has the right to terminate the framework contract immediately and free of charge prior to the proposed date for the implementation of the changes. 4-changes in interest rates or exchange rates may be applied immediately and without notice, provided that this right has been agreed in the framework contract and the changes are based on exchange rates or agreed in accordance with the reference (ii)) and iii) of point (c)) article 53 5-the payment service user shall be informed as soon as possible of any change in the interest rate in accordance with article 52, unless the parties have agreed on a periodicity or in specific ways for the provision or availability of the information. 6 – changes in interest rates or foreign exchange which are more favourable to the payment service users can be applied without notice. 7-changes in interest rates or exchange rate used in payment transactions shall be implemented and calculated in a neutral manner, in order not to establish discrimination between payment service users. Article 56 termination of framework contract 1-the payment service user may terminate the framework contract at any time unless the parties have agreed on a period of notice, which shall not be more than a month. 2-When the payment service user is a consumer or a micro-enterprise, the termination of the framework contract is always free of charge to the user. 3-outside the cases referred to in the preceding paragraph, the complaint of framework contracts of 78


indefinite duration or concluded for a fixed period exceeding 12 months will be free of charges for the payment service user after the expiry of the period of 12 months. In all other cases, the costs of the complaint must be suitable and meet the costs incurred. 4 – if agreed in the framework contract, the payment service provider may terminate a framework contract for an indefinite period by giving at least two months, in accordance with article 52 5-in the case of amendment of the framework contract or the information and conditions specified in article 53, the payment service user has the right to terminate the framework contract immediately and free of charge prior to the proposed date for the implementation of the changes. 6 – regularly invoiced charges for the provision of payment services are only payable by the payment service user in part proportional to the period until the date of termination of the contract; If such fees are paid in advance shall be refunded in part proportional to the period not elapsed yet. Article 57 to provide Information before execution of individual payment transactions in the case of an individual payment transaction conducted under a framework contract initiated by the payer, the payment service provider shall provide, at the request of the payer and for this operation, the following specific information: the maximum enforcement Period) payment transaction. b) charges that the originator should support and, where appropriate, discrimination of the respective amounts. Article 58 information to be provided to the payer on individual payment transactions 1-after the amount of an individual payment transaction have been charged on 79 counts of the payer, or, if the payer does not use an account, upon receipt of the payment order, the payment service provider of the payer pays to this without undue delay and in accordance with article 52 , the following information: a) A reference enabling the payer to identify each payment transaction and, where appropriate, information relating to the payee; b) the amount of the payment transaction in the currency in which the payer's account is debited or in the currency used in the payment order; c) the amount of any charges for the payment transaction and, where appropriate, the respectivadiscriminação, or the interest that the originator should pay; d) where applicable, the exchange rate used in the payment transaction by the payment service provider of the payer and the amount of the payment transaction after that currency conversion; and e) the debit value date or the date of receipt of the payment order. 2-the framework contract may include a clause stipulating that the information referred to in the preceding paragraph shall be provided or made available periodically at least once a month and second a way awake which allows the payer to store and reproduce information unchanged. 3 – the framework contract should include a clause stipulating that, by express request of the payment service user to the payment service provider is obligated to provide free of charge the information referred to in paragraph 1:00 pm paper once a month. Article 59 information to be provided to the payee on individual payment transactions 1-After the execution of an individual payment transaction, the payment service provider of the payee to this without undue delay and in accordance with article 52, the following information: a) A reference enabling the payee to identify the payment transaction and, where appropriate 80 , the payer, and any information transmitted in connection with the payment transaction; b) the amount of the payment transaction in the currency in which it is credited to the beneficiary's account; c) the amount of any charges for the payment transaction and, where appropriate, their discrimination, or the interest that the beneficiary should pay; d) where applicable, the exchange rate used in the payment transaction by the payee's payment service provider, as well as the amount of the payment transaction before that currency conversion; and e) the credit value date. 2-the framework contract may include a clause stipulating that the information referred to in paragraph 1 shall be provided or made available periodically at least once a month and second a way awake which allows the payee to store and reproduce information unchanged. 3 – the framework contract should include a clause stipulating that, by express request of the payment service user to the payment service provider shall provide free of charge the information referred to in paragraph 1, in paper form, once a month.

SECTION IV common provisions article 60 currency and monetary conversion 1-payments shall be made in the currency agreed between the parties. 81 2-If a monetary conversion service is proposed before the payment transaction via automatic payment terminal or by the beneficiary, the part that proposes the monetary conversion service to the payer shall provide the following information: a) charges that the originator should support; b) exchange rate to be applied for the purposes of converting the payment transaction. Article 61 information on additional charges or reductions 1 – if the beneficiary covers charges or proposes a reduction for the use of a given payment instrument, shall inform the payer before the start of the payment transaction. 2 – If the payment service provider or a third party covers charges for the use of a given payment instrument, shall inform the payment service user before the start of the payment transaction.

CHAPTER II rights and obligations concerning the provision and use of payment services section 1 common provisions article 62 1-scope the provisions of this chapter shall apply to micro-enterprises in the same way as to consumers. 2-When the payment service user is not a consumer, the 82 parties can move the application, in whole or in part, the provisions of paragraph 3 of article 63, paragraph 3 of article 65 and articles 70, 72, 73, 74, 77 and 86, and wake up in a different period of fixed in article 69 3-this chapter shall apply without prejudice to the provisions of Decree-Law No. 359/91 , of 21 September, as amended by Decree-Law No. 101/2000 of June 2; the legislation on the conditions for granting of consumer credit is applicable in so far as they contain provisions not provided for in this chapter. Article 63 charges applicable 1 – The originator and the beneficiary may be required to the charges for the payment service provider. 2-in the case of the payment transaction involving transactions of monetary conversion, the payer and the beneficiary may agree on a different allocation of costs set out in the preceding paragraph.

3-the payment service provider may not charge the payment service user the costs inherent to the information obligations or corrective and preventive measures provided for in this chapter. 4-Notwithstanding the provisions of paragraph 1, the payment service provider and the payment service user may agree on charges in the following situations: a) notification of refusal justified of execution of a payment order as referred to in paragraph 2 of article 76; b) revocation of a payment order as referred to in paragraph 5 of article 77; 83 c) recovery of funds, in accordance with paragraph 3 of article 85 5-in the cases referred to in the preceding paragraph, the charges must be suitable and correspond to the costs actually incurred by the service provider. 6-the payment service provider should not prevent the beneficiary from, on the use of a given payment instrument,: a) Offer a reduction for its use; or, b) Require a charge for its use, except in cases where the beneficiary requires the payer using a specific payment instrument, or when there is legislative provision which limits this right in encouraging competition or promote the use of efficient payment instruments.


Article 64 derogation for low value payment instruments and electronic money 1-in the case of payment instruments which, according to the framework contract, concern only individual payment transactions not exceeding EUR 30 or which have a limit of EUR 150 or store funds which allow never exceed 150 EUR, payment service providers may agree with their users in that : a) do not apply) (b) of paragraph 1 of article 67, paragraph (c)) and e) of paragraph 1 of article 68 and paragraphs 4 and 5 of article 72, if the payment instrument does not allow these operations block or prevent their subsequent use; b) does not apply to articles 70 and 71 and paragraphs 1 and 2 of article 72 if the payment instrument is used anonymously or the payment service provider may not, for other reasons intrinsic to the payment instrument, provide evidence that the payment transaction was authorised; 84 c) Notwithstanding the provisions of paragraphs 2 to 4 of article 76, the payment service provider is not obliged to notify the user of this service of the refusal of a payment order, if the non-performance if you can understand the context; d) Notwithstanding article 77, the payer may not revoke the payment order after having communicated this order or your consent the recipient to execute the payment transaction; e) by way of derogation from articles 80 and 81, apply other lead times. 2-articles 71 and 72 shall also apply to electronic money within the meaning of paragraph 1 of article 4 of Decree-Law No. 42/2002, of 2 March.

SECTION II Authorization of payment transactions article 65 consent and withdrawal of consent 1-a payment transaction or a series of payment transactions shall be deemed to be authorised only if the payer consent in its execution. 2-consent must be given prior to the execution of the operation, unless it is agreed between the payer and the payment service provider that it be provided in later time. 3-the consent referred to in the preceding paragraphs shall be given in the form agreed between the payer and the payment service provider; in case of non-compliance with the agreed form, it is considered that the payment transaction was not authorized. 4-the consent may be withdrawn by the payer at any time, but never 85 after the moment of irrevocability established under article 77; the consent given for the implementation of a series of payment transactions may also be removed, with the result that any subsequent payment transaction shall be considered denied. 5 – communication and procedures for withdrawal of consent shall be agreed between the payer and the payment service provider.

Article 66 Limits the use of the payment instrument 1-in cases where a specific instrument is used for payment for the purpose of communication of consent, the payer and the payment service provider may agree on spending limits for payment transactions executed through the instrument of payment in question. 2-By express stipulation in the framework contract, the payment service provider may reserve the right to block a payment instrument for objectively justified reasons, which relate to: a) the security of the payment instrument; b) suspicion of unauthorized or fraudulent use of the instrument or, c) the significant increase in the risk of the originator not to be able to fulfil their responsibilities for payment, in the case of a payment instrument with a credit line. 3-in the cases referred to in paragraph 1, the payment service provider shall inform the payer of the blocking of the payment instrument and the reasons for the way up, if possible before block 86 payment instrument or at the latest immediately after the blockade, except if such information cannot be provided by objectively justified security reasons or is prohibited by other applicable legal provisions. 4-as soon as you stop checking the reasons for blocking, the payment service provider shall unblock the payment instrument or replace it with a new one.

Article 67 obligations of the payment service user associated with 1 payment instruments – the payment service user entitled to use a payment instrument has the following obligations: a) to use the payment instrument in accordance with the conditions governing the issue and use; and (b)) Communicate without undue delay to the payment service provider, or the entity designated by the latter as soon as it becomes aware of them, the loss, theft, misappropriation or any unauthorized use of the payment instrument. 2-For the purposes of point (a)) of the preceding paragraph, the payment service user should take all reasonable steps, in particular when receiving a payment instrument, to preserve the effectiveness of your security devices. Article 68 Obligations on the payment service provider associated with 1 payment instruments – the payment service provider issuing a payment instrument has the following obligations: 87 a) ensure that the safety devices personalized payment instrument are only accessible to the payment service user entitled to use this instrument without prejudice to the obligations of the payment service user set out in the previous article;

b) refrain from sending unsolicited payment instrument, except where such an instrument already given to the payment service user is to be replaced; c) Ensure the availability at all times of adequate facilities to enable the payment service user to carry out the notification provided for in paragraph b) of paragraph 1 of the preceding article or request unblocking pursuant to paragraph 4 of article 66; d) the payment service provider shall provide the payment service user, at its request, the necessary means to prove, for 18 months after the notification referred to in paragraph b) of paragraph 1 of the preceding article, that has carried out such notification; and e) Prevent any use of the payment instrument as soon as the notification referred to in paragraph b) of paragraph 1 of the preceding article has been made. 2 – the risk of sending the originator of a payment instrument or of their custom security devices run by the payment service provider. Article 69 submission of unauthorised payment transactions or incorrectly executed and rectification law 1 – the payment service user has the right to obtain rectification by the payment service provider, after having become aware of an operation of unauthorized or incorrectly executed payment liable to give rise to complaint 1 88, in particular under articles 86 and 87 communicate the fact to the relevant payment service provider without undue delay and within a period not more than 13 months after the debit date, 2-where, in respect of the payment transaction, the payment service provider has not provided or provided the information is required in accordance with the provisions of chapter I of this title III does not apply the limitation period referred to in the preceding paragraph. Article 70 proof of authentication and execution of payment transactions 1-Case a payment service user denies having authorised an executed payment transaction or claims that the operation was not properly carried out, it is up to the respective payment service provider provide evidence that the payment transaction was authenticated, properly recorded and accounted for and that it was not affected by technical breakdown or other deficiency. 2-where a payment service user denies having authorised an executed payment transaction, the use of a payment instrument recorded by the payment service provider shall, by itself, is not necessarily sufficient to prove that the payment transaction was authorised by the payer or that the latter acted fraudulently or has failed deliberately or through gross negligence , one or more of its obligations under article 67 article 71 liability of the payment service provider for unauthorised payment transactions 1-Without prejudice to article 69, in respect of an unauthorised payment transaction, the payment service provider of the payer shall reimburse you immediately the amount of the unauthorised payment transaction and , where applicable, restore the debited payment account in the situation where I'd be if the operation of 89


unauthorized payment hadn't been performed. 2 – where the payer is not immediately reimbursed by the respective payment service provider in accordance with the provisions of the preceding paragraph, are payable on arrears, counted from day to day from the date on which the payment service user there is denied having authorised the payment transaction executed, until the date of actual repayment calculated the legal rate, fixed in accordance with the Civil Code increased by 10 percentage points, without prejudice to the right to compensation supplement there is place. Article 72 the originator's Liability for unauthorised payment transactions 1-in the case of unauthorized payment transactions resulting from loss, theft or misappropriation of the payment instrument with breach of confidentiality of custom security devices attributable to the payer, the payer supports the losses relating to these operations within the limit of the available balance or credit line associated with the account or the payment instrument up to a maximum of EUR 150. 2 – the payer supports all losses resulting from unauthorised payment transactions if those are due to fraudulent behaviour or intentional non-compliance of one or more of the obligations referred to in article 67, in which case it shall not apply the limits referred to in paragraph 1 of this article. 3 – going on gross negligence of the payer, this supports the losses resulting from unauthorised payment transactions within the limits of the available balance or credit line associated with the account or the payment instrument, although over 150 EUR, depending on the nature of custom security payment instrument and the circumstances of their loss, theft or misappropriation.

4-after completing the notification referred to in point (b)) of paragraph 1 of article 67, the 90 payer does not support any financial consequences arising from the use of a payment instrument lost, stolen or misused suitable, except in cases of fraudulent behaviour. 5-If the payment service provider does not provide appropriate means for the notification at all times of loss, theft or misappropriation of a payment instrument, as required by subparagraph (c)) of paragraph 1 of article 68, the payer is not required to bear the financial consequences resulting from use of that payment instrument, except where have acted fraudulently. Article 73 Repayment of transactions initiated by the beneficiary or through this 1-the payer is entitled to reimbursement by the relevant payment service provider of an authorised payment transaction initiated by or through the payee that has already been executed, if the following conditions are fulfilled: a) the authorisation did not specify the exact amount of the payment transaction when the authorisation was granted; and (b)) the amount of the payment transaction exceeded the amount the payer could reasonably expect based on your previous expenditure profile, in accordance with the framework agreement and in the specific circumstances of the case. 2-at the request of the payment service provider, the payer provides the factual elements relating to the conditions specified in the preceding paragraph. 3 – the reimbursement referred to in paragraph 1 corresponds to the full amount of the payment transaction performed.

4 – with regard to direct debits, the payer and the payment service provider may agree in the framework contract that the payer is entitled to reimbursement by the respective payment service provider even if it doesn't meet the conditions for repayment 91 contained in paragraph 1. 5 – However, for the purposes of point (b)) of paragraph 1, the payer may not be based on reasons related to the exchange rate where it has been applied to the reference exchange rate agreed with the respective payment service provider in accordance with d) of paragraph 1 of article 48 and article b) of paragraph 3 of article 53 6 – Can be agreed in the framework contract between the payer and the payment service provider the payer is not entitled to a refund if you have communicated directly to the payment service provider consent for the execution of the payment transaction and, where appropriate, the supplier or the beneficiary has provided or made available to the payer information on the future payment transaction the way up, at least four weeks before the date of implementation. Article 74 applications for reimbursement of transactions initiated by the beneficiary or through this 1-the payer has the right to submit the application for reimbursement, as referred to in article 73, of an authorised payment transaction initiated by or through the payee for a period of eight weeks from the date on which the funds have been debited. 2-within 10 working days of receipt of a request for a refund, the payment service provider shall reimburse the full amount of the payment transaction or a justification for refusing the refund, indicating the bodies to which the payer may refer the matter under articles 92 and 93 if you do not accept the justification. 3-the right of the payment service provider to refuse a refund in accordance with the provisions of the preceding paragraph shall not apply in the case referred to in paragraph 4 of SECTION III Implementation article 73 of 92 subsection I payment transactions payment orders and amounts transferred Article 75 Reception 1 payment orders – the time of receipt of the payment order must match the time when the payment order transmitted directly by the payer or indirectly by the recipient or through this is received by the payment service provider of the payer. 2 – If the receipt is not a working day for the payment service provider of the payer, the payment order was received the next business day. 3-the payment service provider may establish a time-limit on the end of the business day beyond which payment orders received are considered to have been received on the following working day. 4-the payment service user issuing the payment order and the payment service provider may agree that the order has received: a) on a date specified; b) after a certain period; or c) on the date on which the payer Fund at the disposal of the respective payment service provider. 5-If the agreed date pursuant to the preceding paragraph is not a working day for the payment service provider, it is considered that the payment order was received the next business day. Article 76 Refusal of payment orders 1-when they are gathered all the conditions laid down in the framework contract concluded with 93 the payer, the payment service provider of the payer can not refuse to execute a payment order, regardless of having been issued by the payer or by the payee or through it, except statutory provision to the contrary. 2-not all the conditions laid down in the framework contract concluded with the originator, the possible refusal of a payment order and, if possible, the reasons inherent in the same and the procedure for correcting any factual errors that have led to such refusal shall be notified, except where otherwise legal, to the payment service user. 3-the payment service provider shall provide or make available the notification by way up and as soon as possible within the time limits laid down in article 80 4-By express clause of the framework contract, the payment service provider may charge the costs inherent to the notification in the case of the refusal be objectively justified. 5-for the purposes of articles 80, 86 and 87, a payment order which has been refused is considered not received.

Article 77 the irrevocability of a payment order 1-except as provided in the following paragraphs, a payment order cannot be revoked by the payment service user after the receipt by the payment service provider of the payer. 2-where a payment transaction is initiated by the beneficiary or through this, the payer may not revoke the payment order after having informed the beneficiary that order or consent to the execution of the payment transaction. 94 3-However, in the case of direct debit and without prejudice to the rights of reimbursement, the payer may revoke the payment order by the end of the business day preceding the day agreed for debiting the funds. 4-in the case referred to in paragraphs 4 and 5 of article 75, the payment service user may revoke a payment order until the end of the business day preceding the agreed date. 5-After the deadlines specified in paragraphs 1 to 4, the payment order may be revoked only if this has been agreed between the user and the payment service provider. 6-in the case of payment transactions indicated in paragraphs 2 and 3, in addition to the agreement referred to in paragraph 5, it is also required the agreement of the beneficiary. 7-By express clause of the framework contract, the payment service provider may charge for revocation.




Article 78 transferred and Amounts received 1 – the payment service provider of the payer, the payment service provider of the payee and any intermediaries of both payment service providers are obliged to transfer the full amount of the payment transaction and refrain from deducting any charges from the amount transferred. 2-However, the beneficiary and the relevant payment service provider may agree that the latter deduct their own charges amount to 95 before transfer credit to the beneficiary. 3-in the case referred to in the preceding paragraph, the full amount of the payment transaction and charges shall be indicated separately on the information to give to the beneficiary. 4-If the amount transferred are deducted any charges not agreed in accordance with paragraph 2: a) the payment service provider of the payer shall ensure that the payee receives the full amount of the payment transaction initiated by the payer; (b)) the payment service provider of the payee shall ensure that this receives the full amount of the operation, the operation initiated by the beneficiary or through it.

Subsection II lead time and value date 79 Article 1 – scope this subsection applies to payment transactions in euros. 2-this subsection is still apply to other payment transactions covered by this decree-law, unless otherwise agreed between the user and the payment service provider; the parties may not, however, rule out the application of article 84 3-When the user and the respective payment service provider agree on a longer period than those laid down in article 80 to intra-Community payment transactions such period may not exceed four working days from the time of receipt in accordance with article 96 Article 75 80 payment transactions to a payment account 1 – service provider payment of the payer shall ensure that, after the time of receipt of the payment order pursuant to article 75, the amount of the transaction is credited to the account of the payee's payment service provider by the end of the first following working day. 2-in the case of cross-border payment transactions, up to 1 January 2012, the payer and the payment service provider may agree to a longer period, which may not exceed three working days. 3-the periods referred to in paragraphs 1 and 2 may be extended by one more working day in case of payment transactions issued in paper form. 4-the payment service provider of the payee shall establish the value date and make available the amount of the payment transaction at the payee's payment account after receiving the funds in accordance with article 84 5-the payment service provider of the payee shall forward payment orders issued by the beneficiary or by the payment service provider of the payer within the time limits agreed between the payee and their respective payment service provider in order to allow for the settlement in relation to the direct debits on the date of execution awake. Article 81 absence of payee payment account with the payment service provider If you do not have a payment account with the payment service provider, the funds are made available to the payee by the payment service provider that receives the funds on account of the beneficiary within the time limit set in article 80 Article 82 97 cash deposits on a payment account 1-Case a consumer make a cash deposit in a payment account with the payment service provider and in the currency of that payment account, the payment service provider shall ensure that the amount is available immediately after the time of receipt of the funds and with value date coincident with this moment. 2 – If the payment service user is not a consumer, the amount shall be made available and be awarded a value date not later than the working day following receipt of the funds.

Article 83 national payment transactions 1-internal transfers and in the absence of any stipulation to the contrary, the sums of money shall be credited to the beneficiary's account on the same day, if the transfer takes place between accounts based on the same payment service provider, being the value date and the date of availability to the time of the claim. 2-internal transfers between accounts of payment based on different payment service providers, shall not apply the provisions of paragraph 2 of article 80 Article 84 value date and availability of funds 1-the date-value assigned to credit the payee's payment account shall be, at most, the business day on which the amount of the payment transaction is credited to the account of the payee's payment service provider. 2-the payment service provider of the payee shall ensure that the amount of the payment transaction stay available to the beneficiary immediately after it has been 98 payment credited to the account of the payee's payment service provider. 3-the value date of the debit in the account of the payer payment cannot be earlier than the time when the amount of the payment transaction is debited to that payment account.

Subsection III Liability Article 85 incorrect unique identifiers 1-If a payment order is executed in accordance with the unique identifier, was executed correctly with regard to the payee specified in the unique identifier. 2 – If the unique identifier provided by the payment service user is incorrect, the payment service provider is not responsible under article 86, the non-execution or defective execution of the payment transaction. 3-However, the payment service provider of the payer shall make reasonable efforts to recover the funds involved in the payment transaction, and may charge the payment service user charges for this recovery, if agreed in the framework contract. 4-Notwithstanding the payment service user to be able to provide the additional information specified in subparagraph (a)) of paragraph 1 of article 48, or (b)) of paragraph 2 of article 53, the payment service provider is only responsible for the execution of payment transactions in accordance with the unique identifier provided by the payment service user. Article 86 99 non-execution or defective execution of payment orders issued by the payer 1-If a payment order is issued by the payer, the responsibility for the proper implementation of the payment transaction before the originator it is up to the payment service provider shall, without prejudice to article 69, paragraphs 2 and 3 of article 85 and article 90 2-If the payment service provider of the payer can prove to the payer and If applicable, the payment service provider of the payee that the latter received the amount of the payment transaction in accordance with paragraph 1 of article 80, the responsibility for the proper implementation of the payment transaction to the payee the payment service provider of the payee. 3-Case responsibility fits to the payment service provider of the payer in accordance with paragraph 1, it shall reimburse the payer, without undue delay, the amount of the payment transaction not executed or incorrectly executed and, where applicable, restore the debited payment account in the situation where I'd be if I hadn't happened the defective execution of the payment transaction. 4-Case responsibility fits to the payment service provider of the payee pursuant to paragraph 2, it shall immediately credit the corresponding amount on the payee's payment account or make available to the beneficiary the amount of the payment transaction. 5-in the case of a payment transaction not executed or incorrectly executed where the payment order is issued by the payer, the payment service provider shall, regardless of the responsibility incurred by virtue of paragraphs 1 and 2 and, if requested, make immediately efforts to trace the payment transaction and notify the originator of the results obtained. 6-beyond the responsibility referred to in the preceding paragraphs, the payment service providers are accountable to the users of payment services for any charges for which they fit and for any interest to which they subject the payment service user as a consequence of the non execution or defective execution 100 of the payment transaction.


Article 87 non-execution or defective execution of payment orders issued by the beneficiary or through this 1-If a payment order is issued by the beneficiary or through this, it is up to the payment service provider shall, without prejudice to the provisions of article 69, paragraphs 2 and 3 of article 85(1) and in article 90, the liability to the beneficiary for the correct transmission of the payment order to the payment service provider of the payer pursuant to paragraph 5 of article 80 2 – in cases of paragraph 1, the payment service provider of the payee shall immediately re-transmit the payment order in question to the payment service provider of the payer. 3-Notwithstanding the provisions of paragraph 1, the payment service provider of the payee, without prejudice to the provisions of article 69, paragraphs 2 and 3 of article 85(1) and in article 90, the liability to the beneficiary by the treatment of the payment transaction in accordance with its obligations deriving from article 84 4 – If the payment service provider of the payee is liable pursuant to paragraph 1 , must ensure that the amount of the payment transaction stay available to the beneficiary immediately after having been credited to the account of the payee's payment service provider. 5-in the case of a payment transaction not executed or incorrectly executed whose responsibility does not fit to the payment service provider of the payee pursuant to the preceding paragraphs, it is up to the payment service provider of the payer to be liable to the payer.

101 6-in the case referred to in paragraph 1, the payment service provider of the payer shall, where appropriate and without undue delay, refund the payer the amount of the payment transaction not executed or incorrectly executed and restore the debited payment account in the situation where I'd be if I hadn't happened the defective execution of the payment transaction. 7-in the case of a payment transaction not executed or incorrectly executed where the payment order is issued by the beneficiary or through this, the payment service provider shall, regardless of liability incurred pursuant to this article and if requested, make immediately efforts to trace the payment transaction and notify the beneficiary of the results obtained. 8-beyond the responsibility referred to in the preceding paragraphs, the payment service providers are accountable to the users of payment services for any charges for which they fit and for any interest to which they subject the payment service user as a consequence of the non-execution or defective execution of the payment transaction. Article 88 additional Compensation articles 85 and 87 shall not affect the right to further compensation under the law applicable to the contract.

Article 89 102 right of recourse 1 – if the liability of a payment service provider in accordance with articles 86 and 87 is attributable to another payment service provider or to an intermediary, that payment service provider or intermediary shall compensate the first payment service provider for any losses incurred or sums paid under articles 86 and 87 2 – additional compensation may be fixed in accordance with agreements between payment service providers or between these and any intermediaries and the law applicable to such agreements. Article 90 force majeure the responsibility referred to in articles 79 to 89 shall not apply in case of abnormal and unforeseeable circumstances beyond the will of the party which invokes these circumstances, unless their hadn't consequences could not be avoided despite all efforts made, or if the payment service provider is bound by other legal obligations, in particular those relating to the prevention of money laundering and terrorist financing. SECTION IV Data Protection article 91 1 – data protection is allowed the processing of personal data by payment systems and payment service providers only to the extent necessary to safeguard the prevention, investigation and detection of fraud in relation to payments. 2 – the processing of personal data referred to in the preceding paragraph shall be conducted in accordance with law No. 67/98 of 26 October. TITLE IV 103 OUT-OF-COURT DISPUTE RESOLUTION and COMPLAINT PROCEDURE Article 92 provision of means of ADR 1-Without prejudice to the access by users of payment services to competent judicial resources, payment service providers should offer to their users of payments services access to effective and appropriate non-judicial means of dispute settlement of complaints and repair value equal to or lower than the jurisdiction of the courts of first instance , relating to rights and obligations laid down in title III of this decree-law. 2 – the offer referred to in the preceding paragraph through the effective accession of payment service providers at least two entities authorized to conduct arbitrations pursuant to Decree-Law No. 425/86, of 27 of December, or the two entities registered in the system of voluntary registration procedures for out-of-court settlement of consumer disputes established by Decree-Law No 146/99 , may 4. 3 – entities chosen by payment service providers must comply with the principles applicable to the bodies responsible for the out-of-court settlement of consumer disputes set out in the recommendation of the Commission of the European communities n° 98/257/EC of 30 March 1998.

4-service providers may, as an alternative or in addition to the provision of the means above, submit the disputes referred to in paragraph 1 to the intervention of a client provider or similar entity, appointed in accordance with the principles formulated in recommendation No 98/257/EC of the Commission of the European communities, of 30 March 1998. 5-service providers must still ensure that dispute resolution is forwarded to cross-border entity 104 signatory of the Protocol of accession to the FIN-NET network of cooperation on cross-border out-of-court settlements in the financial sector, the choice falls on one of the entities referred to in the preceding paragraphs. 6 – service providers shall inform the Bank of Portugal to entities which have acceded in accordance with paragraph 2, within 15 days after accession. Article 93 complaint to the Bank of Portugal 1-Without prejudice to the access to competent judicial means, the payment service users or their representative associations, and other interested parties may submit directly to the Bank of Portugal claims founded in breach of provisions of title III of this Decree-Law on the part of the payment service providers. 2 – in its response, the Bank of Portugal shall inform the complainants of the existence of means of ADR, where complaints cannot be resolved through the steps he was required to legally adopt or fit subject does not fit into their legal skills.

3-complaints provided for in this article shall apply, mutatis mutandis, the system of complaints from customers of credit institutions established in article 77 of the RGICSF. Title V ARRANGEMENTS AGAINST-ORDENACIONAL article 94 105 1 – Offences is punishable with fine of € 3 000 to € 1 500 000 or € 1 000 to € 500 000, as is applied to collective entity or natural person, the following offenses: a) the provision of payment services through agents without having been complied with the provisions of paragraph 2 of article 18; b) breaching the conditions laid down in article 19 with regard to the Third Committee of major operational functions; c) Constitution of commercial company whose sole object the provision of payment services, when determined by the Bank of Portugal pursuant to article 34, paragraph 2; d) non-compliance with the duty to file referred to in article 36; and) violation of rules concerning amendment and termination of framework contracts provided for in paragraphs 4, 6 and 7 of article 55 and in paragraph 3 of article 56; f) payments in a different currency from that which was agreed between the parties, in violation of the provisions of paragraph 1 of article 60; g) the absence of unblocking or replacement of a payment instrument, in violation of the provisions of paragraph 4 of article 66;

h) refusal of execution of payment orders, in violation of the provisions of paragraph 1 of article 76; I failure to comply with time limits) of execution, value and availability dates laid down in articles 79 to 84; j) compliance, by payment service providers, the duties relating to the provision of effective and appropriate non-judicial means of dispute, complaints and redress in accordance with article 92; l) the ducts provided for and punished under (a)), b), (d)), f), and (i)) of the art. 210.º of the RGICSF, when applied in the context of the activity of the institutions of 106


payment. 2-the breach of the duty of information about additional charges or reductions provided for in article 61, if this duty falls on the recipient or third party who is not the provider of the payment service, is punishable under article 21 of Decree-Law No. 57/2008, of 26 March, competing for Food and economic Safety Authority (EFSA) to the corresponding statement of a misdemeanour proceedings. Article 95 Are particularly serious Offences punishable with a fine of € 10,000 to € 5 000 000 or € 4 000 € 2 000 000, according to apply to collective entity or natural person, the following offences: a) the provision of accounting information to the Bank of Portugal with non-compliance with the provisions of article 33; b) violation of rules regarding information requirements and communications provided for in articles 42, 45, 47 to 50, 52 to 55, 57 to 61, in paragraph 3 of article 66, paragraphs 2 and 3 of article 76, paragraph 3 of article 78, paragraph 5 of article 86 and in paragraph 7 of article 87; c) violating the rules on recovery of charges provided for in article 43, in paragraphs 2, 4 and 5 of article 56, article 63, paragraph 4 of article 76, paragraph 7 of article 77, paragraphs 1 and 2 of article 78 and in paragraph 3 of article 85; d) conducting payment transactions not authorized by the originator, by absence or withdrawal of consent to the execution of same, in violation of the provisions of article 65; and) the non-compliance with the obligations linked to payment instruments provided for in article 68; f) the obligations of reimbursement and payment provided for in paragraph 1 of article 71, paragraph 1 of article 73, paragraphs 2 and 3 of article 74, paragraphs 3 and 4 of article 86 and in paragraphs 4 and 6 of article 87(1); 107 g) violation of rules limiting the liability of the payer provided for in article 72; h) breach of the obligation to pay the full amount to beneficiary referred to in paragraph 4 of article 78; I) the non-compliance with the obligations of recovery of funds and payment operations tracking provided for in paragraph 3 of article 85, paragraph 5 of article 86 and in paragraph 7 of article 87; j) violations of mandatory precepts contained in regulations issued by the Bank of Portugal under c) of paragraph 1 of article 6, not provided for in this article or in the following article; l) unauthorized practice by any individuals or entities, the activity of providing payment services;

m) exercise, payment institutions, activities not included in your legal object or the provision of payment services which are not included in the authorisation; n) the granting of credit by payment institutions, outside of the conditions and limits established pursuant to article 9; the) use, payment institutions of funds from the users of payment for different purposes of executing payment services; p) violation, payment institutions, the duty to use the payment of accounts that hold exclusively for payment transactions; q) performing statutory amendments provided for in article 15, when not preceded by authorization of the Bank of Portugal; r) prudential compliance with standards laid down in article 29, article 30, 108 without prejudice to paragraph 3 of that article, and article 31, without prejudice to paragraph 3 of the same article, when her serious injury or is likely to occur to the financial stability of the organization concerned; s) failure to comply with the protection requirements of the funds defined in article 32, including the failure of determinations issued by the Banco de Portugal under paragraph 6 of that article; t) the ducts provided for and punished in (c)), and), f), (g)), l), m), o), p), q) and r) of article 211 of the RGICSF, when carried out within the framework of the activities of payment institutions.

Article 96 penalties 1-Together with the fines, can be applied to the person in charge for any of the offences provided for in articles 94 and 95 the following penalties depending on the gravity of the infringement and of the agent's fault: a) publication of the judgment; b) seizure and confiscation of the object of the offence, including the economic product of this, with observance of the provisions of articles 22 to 26 of Decree-Law No. 433/82 of 27 October; c) suspension of the exercise of voting rights allocated to the partners of payment institutions, for a period of 1 to 10 years; d) Inhibition of social positions and administration functions, direction, management or leadership in credit institutions, financial companies and institutions from payment, for a period of 6 months to 3 years in the case of offences referred to in article 94, or 1 to 10 years, in the case of offences referred to in article 95; 109 e) Prohibition, in whole or in part, for a period up to three years, the pursuit of the activity of provision of payment services listed in article 4 2 – the publication referred to in point (a)) of the preceding paragraph shall be carried out: a) in the case of the Banco de Portugal decisions which have become definitive, already on the page of the Bank of Portugal on the Internet and at the expense of the infringer, in a newspaper of wide dissemination at the location of the seat or of the permanent establishment of the offender or, if this is a natural person, in the locality of their residence;

b) in the case of decisions of the Bank of Portugal which have been the subject of judicial review, on the Bank of Portugal on the Internet, with non-express mention of the judgment on appeal. Article 97 worsening fine Without prejudice to the provisions of paragraph b) of paragraph 1 of the preceding article, if twice the economic benefit exceeds the maximum limit of the fine applicable, this is elevated to that value. Article 98 Attempt and neglect the attempt and negligence is always punishable, being, in this case, reduced to half the minimum and maximum limits of the fines provided for in articles 94 and 95 Article 99 rules applicable In all that is not provided for in the preceding articles, shall apply the regime concerning the illicit mere social ordering laid down in articles 201 et seq. of RGICSF mutatis mutandis. TITLE VI 110 supplementary provisions, transitional and final provisions article 100 direct debits the regime established by this decree-law shall not affect the validity of the direct debit authorizations existing at the date of its entry into force, the same as the express consent of the payer to execute direct debits article 101(1) Adaptation of contracts in force 1-the arrangements contained in this decree-law shall not affect the validity of the contracts in force concerning payment services on it regulated , and therefore the provisions of this Decree-law are more favourable to the payment service users. 2-Notwithstanding the provisions of paragraph 1, the payment service providers must adapt contracts for payment services that currently provide the payment service users that are their customers to the provisions of this decree-law, from the date of its entry into force and no later than six months. 3-payment service providers should refer to the users of payment services that are their customers a full copy of the contractual conditions resulting from adjustments made in accordance with paragraph 1, in the manner that has been agreed with them or, failing agreement, by letter, in which it is evidenced the essential adaptations made, inform yourself on what conditions these adaptations if are tacitly accepted by users , as defined in article 102, and identifies the form that the user must use to communicate their possible non-acceptance of the adaptations made. Article 102 Consent The contractual terms proposed by the payment service providers in accordance with article 100, 111 are considered tacitly accepted by users of payment services if:) they do not express their opposition within two months of receipt of the aforesaid conditions; or, b) these requests to the payment service provider of any new services under the contracts, although they do at least one month has elapsed after the communication of these adaptations. Article 103 Charges payment services providers may not charge the payment service user any sums: a) the adaptation of contracts in compliance with article 100; b) by communication made in accordance with paragraph 2 of that article; and (c)) for the termination of contracts due to the opposition of the customers, without prejudice to other obligations made under the agreement terminated. 112


ANNEX the calculation of capital requirements referred to in article 31 of this decree-law is in accordance with one of the methods described in this annex. I – Method of fixed overhead 1. Payment institutions shall have own funds of at least amount equivalent to 10% of the value of their fixed overheads of the preceding year. 2. The Bank of Portugal can set this requirement in cases where there is a significant change in the activity of the payment institution since the previous year. 3. While the payment institution has not completed a year of activity (on the date of calculation), and from the day on which it begins, the capital requirement shall be 10% of the value of the fixed expenses planned for the first year in your business plan estimates. The Bank of Portugal may require an adjustment of that plan, in particular where there has been a significant divergence in the face of predictions. II – volume 1 Payment Method. Payment institutions shall have own funds of at least an equivalent amount to the sum of the following elements multiplied by a scaling factor k defined below: i) 4.0% from the volume of payments up to EUR 5 million; more ii) 2.5% of the volume of payments above EUR 5 million and up to EUR 10 million; more iii) 1% of the volume of payments above EUR 10 million and up to EUR 100 million; 113 more iv) 0.5% of the volume of payments above EUR 100 million and up to EUR 250 million; more v) 0.25% of the part of the volume of payments above EUR 250 million. The scaling factor k is: If the imposition of 0.5) payment pay payment service indicated in paragraph [6] of article 4; b) 0.8 if the payment institution pay payment service indicated in paragraph [7] article 4; c) 1.0 if the payment institution pay any of the payment services listed in points (a) [1] to [5] article 4. 2. The ' payments ' volume corresponds to one-twelfth of the total amount of payment transactions executed by the payment institution in the previous year. While the payment institution has not completed a year of activity (on the date of calculation), and from the day it first, the volume of payments should be based on the value of the volume of payments planned for the first year in your business plan estimates. The Bank of Portugal may require an adjustment of that plan, in particular where there has been a significant divergence in the face of predictions.

III-relevant indicator method 1. Payment institutions shall have own funds of at least an equivalent amount to the sum of the following components, multiplied by a scaling factor k defined below: 114 i) 10% of the part of the relevant indicator up to EUR 2,500,000, ii) 8% of the part of the relevant indicator up to EUR 2,500,000 and up to 5 million euros, iii) 6% of the part of the relevant indicator up to EUR 5 million and up to EUR 25 million , iv) 3% of the part of the relevant indicator up to EUR 25 million and up to EUR 50 million, v) 1.5% of the part of the relevant indicator up to EUR 50 million. The scaling factor k is: If the imposition of 0.5) payment pay payment service indicated in paragraph 6 of article 4; b) 0.8 if the payment institution pay payment service indicated in paragraph 7 of article 4; c) 1.0 if the payment institution pay any of the payment services listed in points (a) 1 to 5 of article 4. 2. The ' relevant ' indicator is the sum of the following components:-interest Income, interest expenses-,-commissions, and-Other operating income. The defined elements are based on the accounting categories relating to the profit and loss account of payment institutions. Each of the elements must be included in the sum with its positive or negative sign. The extraordinary or irregular income should not be considered in calculating the relevant indicator. Commissions paid for services provided by third parties (outsourcing) 115 can contribute to reduce the relevant indicator if they are incurred by an institution subject to the supervision of the Bank of Portugal pursuant to the provisions of this decree-law. The relevant indicator is calculated on the basis of annual observations reported to the end of the immediately preceding financial year. When audited data are not available, estimates may be used. 3. Without prejudice to the provisions of paragraph 1, for payment institutions subject to relevant indicator method their own funds may not be less than 80% of the average of the relevant indicator for the last three financial years.