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Payment Accounts Directive (PAD)

The Payment Accounts Directive (PAD) was adopted within the European Union in 2014.

The Payment Accounts Directive (PAD) was adopted within the European Union in 2014 and is being implemented by EU countries with the main aim of helping the EU internal market for payment accounts* work well.

The provisions of PAD apply to Payment Service Providers (PSPs), including banks and building societies, in respect of the payment accounts they offer to clients.

To improve transparency and comparability of fees, PSPs are obliged to make available the following documents:

  • The Glossary of Standard Terms and Definitions, which lists and defines payment account linked services in a standardised manner.
  • The Fee Information Document (FID), which must be provided to prospective clients, and sets out pre-contractual fee information for payment account linked services.
  • Statement of Fees (SoF), which must be provided to each client, showing an overview of fees charged and interest earned in a year.

* The Payment Accounts Directive (PAD)

"All provisions of this Directive should concern payment accounts through which consumers are able to carry out the following transactions: place funds, withdraw cash and execute and receive payment transactions to and from third parties, including the execution of credit transfers. As a consequence, accounts with more limited functions should be excluded."

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