Payment Institutions | Central Bank of Ireland (2022)

FAQs

What is payment institution? ›

What is a Payment Institution? The term “Payment Institution” refers to a category of payment service providers which came into being as a result of the enactment of the Payment Services Directive (PSD).

What is a major payment institution? ›

Major payment institutions are licensed and regulated under the Payment Services Act ("PS Act") to provide payment services without being subject to the specified thresholds. The thresholds are set out in section 6(5) of the PS Act.

What is an electronic payment institution? ›

Simply put, an authorised e-money institution is a limited version of a bank that can only provide payment services and hold funds of its clients.

What are the different bank payments? ›

Payment is the transfer of money, goods, or services in exchange for goods and services in acceptable proportions that have been previously agreed upon by all parties involved. A payment can be made in the form of services exchanged, cash, check, wire transfer, credit card, debit card, or cryptocurrencies.

Is Visa a payment institution? ›

Key Takeaways. Visa is a digital payments company providing transactions between consumers, merchants, and banks and other financial institutions.

Can a payment institution issue cards? ›

Any authorised payment service provider, be it a bank or a payment institution, can issue payment instruments. Payment instruments do not only cover payment cards, such as debit cards and credit cards, but any personalised device or set of rules agreed between the issuer and the user used to initiate a payment.

What does payment service provider do? ›

What are Payment Service Providers (PSPs)? PSPs (also called Merchant Service Providers) are third-party companies that help business owners accept a wide range of online payment methods, like online banking, credit cards, debit cards, e-wallets, cash cards, and more.

What is PSP banking? ›

Payment service providers – also known as merchant service providers or PSPs – are third parties that help merchants accept payments. Simply put, payment service providers enable merchants to accept credit and debit card payments (as well as Direct Debit, bank transfer, real-time bank transfer, etc.)

Is PayPal a money service business? ›

PayPal is licensed as a Money Transmitter and a BitLicense by the New York State Department of Financial Services.

What is the difference between payment institution and electronic money institution? ›

Broadly speaking, payment institutions can provide the same services as electronic money institutions. The main difference between the two is that payment institutions are unable to issue electronic money.

Is a payment institution a financial institution? ›

E-money Institutions vs Payment Institutions – differences and the most common questions. There are two main types of financial institutions – Authorised Payment Institution (API) and E-money Institution (EMI).

What is the difference between bank and e-money institution? ›

The single biggest difference between banks and e-money institutions is that banks can do four things e-money institutions can't: Manage customers' money, including investing it or using it to issue loans to other customers at a profit. Offer interest-bearing accounts.

How many types of payment systems are there? ›

These include electronic funds transfers, direct credits, direct debits, internet banking, and e-commerce payment systems. Payment systems are used in lieu of tendering cash in domestic and international transactions and consist of a major service provided by banks and other financial institutions.

How many types of payment modes are there? ›

8 Different Modes of Payment and How to Accept Them.

Is Mastercard a financial institution? ›

Mastercard itself is a financial services business that primarily generates revenue from gross dollar volume fees. Mastercard cards are issued by member banks with the Mastercard logo and are characterized as open loop.

What is PSO and PSP? ›

Payment System Operator and Payment Service Provider (PSO and PSP) means such Authorized Party that is a company registered under Companies Ordinance 1984 and is engaged in operating and/or providing Payment Systems related services like electronic payment gateway, payment scheme, clearing house, ATM Switch, POS ...

Is Visa a payment gateway? ›

The payment processor forwards the transaction information to the card association (I.e.: Visa/MasterCard/American Express). If an American Express or Discover Card was used, then the card association also acts as the issuing bank and directly provides a response of approved or declined to the payment gateway.

Are payment service providers regulated? ›

If you use a non-bank payment service provider, your money won't be protected by the Financial Services Compensation Scheme (FSCS). Instead, it will be protected by a regulated process known as 'safeguarding'.

What is the difference between PSD1 and PSD2? ›

The difference between PSD1 and PSD2 is that the latter is an updated version that broadens the scope of its predecessor. PSD2 recognises third-party players, acknowledges a wider range of payment transactions and addresses some of the shortcomings of PSD1 as technology developed.

What is PSD in banking? ›

Payment Services Directive - Wikipedia.

What are examples of payment services? ›

A payment service provider (PSP) refers to a third-party company that provides payment services to businesses that accept online payment methods. These methods may include credit cards, debit cards, e-wallets, cash cards, bank transfers, and much more. Examples of PSPs include Amazon Pay, PayPal, Stripe, and Square.

Who is the largest payment processing company? ›

Fidelity Information Services (FIS) – 26.6B

Fidelity Information Services, or FIS, is headquartered in Jacksonville, Florida, and has approximately 55,000 employees. Today it is the largest processing and payments company in the world. The company got its start in 1968 when it was known as Systematics.

How do payment service providers make money? ›

Processing: The payment processor (who might also be your merchant bank) makes money by charging a fixed-rate fee every time you process a transaction — no matter whether it's a sale, a decline or return. Plus, it can charge fees for setup, monthly usage and even account cancellation.

Is Google pay a PSP? ›

In relation to UPI Payment Transactions, Google Pay is a TPAP authorised by NPCI to facilitate Payment Transactions through HDFC Bank, Axis Bank, ICICI Bank and State Bank of India. We are a service provider and participate in UPI through PSP Banks.

Is a PayFac a PSP? ›

PayFac or the Payment Facilitator is the third-party payment services provider (PSP). It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank. Thus, it would arrange communication between both parties, the merchant and the acquiring bank.

Is stripe an acquirer or PSP? ›

Stripe is a payment service provider (PSP) that allows business owners to accept debit/credit cards, digital wallets, ACH payments, and other alternative payment methods in over 135 currencies. Stripe. “Stripe Docs: Currencies”. Accessed May 29, 2022.

What bank is with PayPal? ›

The PayPal Prepaid Mastercard is issued by The Bancorp Bank, Member FDIC, pursuant to license by Mastercard International Incorporated.

Does PayPal require a bank account? ›

Do You Need a Bank Account for PayPal? No, you don't need a bank account to sign up for PayPal or to receive payments. You can, however, connect your PayPal account to a bank account, a debit card or a credit card account for sending and receiving payments and transferring funds.

What is the bank name for PayPal? ›

PayPal and the PayPal logo are trademarks of PayPal, Inc. Wells Fargo Bank, N.A. Member FDIC.

What can you do with an EMI license? ›

Having the status of being a licensed EMI means that as a business, you can start operating and obtaining benefits around the world, such as opening IBAN, SWIFT and SEPA account as well as offering your own payment cards.

What are regulatory payments? ›

Regulatory Payments means the amounts necessary to satisfy any billed or unbilled regulatory fees, assessments, fines, penalties, forfeitures, contributions, including Universal Service Contributions, or other payments assessed by or otherwise owed to the FCC, any State PSC, and the Fund Administrators or their agents, ...

Is an EMI a PSP? ›

A payment service provider (PSP) is a third-party financial institution that carries out payment services. APIs and EMIs are simply two different kinds of PSP.

Is an MFI a bank? ›

Overview. Monetary financial institutions (MFIs) are defined as banks – including the Bank of England – and building societies.

What is a payment account? ›

A payment account is a bank account that allows you to make daily payment transactions. These transactions can include depositing funds, making cash withdrawals and card transactions. Accounts that don't allow you to make these types of transactions are known as non-payment accounts.

Are banks payment service provider? ›

What role do banks play? Issuing banks and acquiring banks work closely together in a payment transaction. The issuing bank issues credit or debit cards to consumers. The acquiring bank processes credit and debit payments on behalf of a merchant.

Is Revolut a bank? ›

Although we do have a banking license, we're not yet a full-fledged bank in the UK, but an e-money institution (fintech). We intend to acquire a UK banking license in the future, as well as licenses in many of the other regions in which we operate.

How do I become an electronic money institution? ›

If you want to issue electronic money (e-money), you must be registered or authorised by us as an EMI, in accordance with the Electronic Money Regulations 2011 (EMRs). EMIs need to comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

What's the difference between PSP APM and payment gateway? ›

A PSP provides a merchant account and payment gateway for the collection and management of payments. Whereas, a payment gateway is a software behind credit card transactions between a merchant and their customers.

What is a payment institution UK? ›

A Payment Institution License UK enables you to offer payment services to the UK market, including, payment accounts, payment processing, merchant acquiring, and money transfer services.

Is a payment institution a financial institution? ›

E-money Institutions vs Payment Institutions – differences and the most common questions. There are two main types of financial institutions – Authorised Payment Institution (API) and E-money Institution (EMI).

What is a small payment institution? ›

The Financial Conduct Authority, in accordance with Payment Services Regulations, defines a small payment institution as being any person, including a corporate entity, registered as a payment institution and included by the Financial Conduct Authority in the Financial Services Register as a small payment institution.

What is the difference between payment institution and electronic money institution? ›

Broadly speaking, payment institutions can provide the same services as electronic money institutions. The main difference between the two is that payment institutions are unable to issue electronic money.

What is an electronic money institution UK? ›

Electronic Money Institution (EMI) in the UK is allowed to issue and redeem electronic money. Electronic money is a digital equivalent of cash stored on an electronic device or remotely at a server. Additionally, EMIs can be authorised to provide all of the services of a Payment Institution.

Who regulates payment services in the UK? ›

PSR works with HM Treasury.

What is a non bank PSP? ›

A non-bank PSP is a company providing retail payment services whose main business is not related to taking deposits from the public and using these deposits to make loans.

Is an MFI a bank? ›

Overview. Monetary financial institutions (MFIs) are defined as banks – including the Bank of England – and building societies.

Is a bank a payment service provider? ›

What role do banks play? Issuing banks and acquiring banks work closely together in a payment transaction. The issuing bank issues credit or debit cards to consumers. The acquiring bank processes credit and debit payments on behalf of a merchant.

What is a payment account? ›

A payment account is a bank account that allows you to make daily payment transactions. These transactions can include depositing funds, making cash withdrawals and card transactions. Accounts that don't allow you to make these types of transactions are known as non-payment accounts.

What is a PSD agent? ›

These 'Payment Services Directive (PSD) Agents' or 'Electronic Money Directive (EMD) Agents', collectively 'Agents', are able to conduct business, seemingly on behalf of one or more 'Principal' firms, to the extent of the permission held by the Principal firm.

What is an SPI Licence? ›

SPI License: obtaining and effective use

Every company that wants to operate in the financial market segment of a particular state should obtain corresponding permission. SPI license (Small Payment Institution license) is issued to applicants who have fulfilled a number of mandatory requirements.

What is a payment initiation service? ›

A payment initiation service is a service to initiate a payment order at the request of the payment service user with respect to an online payment account held at another payment service provider.

What does PSP stand for in payments? ›

What are Payment Service Providers (PSPs)? PSPs (also called Merchant Service Providers) are third-party companies that help business owners accept a wide range of online payment methods, like online banking, credit cards, debit cards, e-wallets, cash cards, and more.

What can you do with an EMI license? ›

Having the status of being a licensed EMI means that as a business, you can start operating and obtaining benefits around the world, such as opening IBAN, SWIFT and SEPA account as well as offering your own payment cards.

What are regulatory payments? ›

Regulatory Payments means the amounts necessary to satisfy any billed or unbilled regulatory fees, assessments, fines, penalties, forfeitures, contributions, including Universal Service Contributions, or other payments assessed by or otherwise owed to the FCC, any State PSC, and the Fund Administrators or their agents, ...

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