Act on Payment Services

Act on Payment Services 1)

Hereby is published the Act on Payment Services, cf. Consolidation Act No. 53 of 18 January 2023, with the amendments resulting from Section 9 in Act No. 409 of 25 April 2023, Section 2 in Act No. 481 of 22 May 2024, Section 20 in Act No. 1602 of 17 December 2024, and Section 5 in Act No. 1666 of 30 December 2024.

The amendment resulting from Act No. 642 of 11 June 2024 on amendment of the Act on Payment Services (Temporary easing of the cash limit) is not incorporated in this consolidation act, as the amendment has been repealed.

Chapter 1 Scope and Definitions

Scope

Section 1. This Act applies to issuers of electronic money, providers of payment services, and payment service recipients, cf. however subsections 2-7 and Section 5.

Subsection 2. For branches in Denmark of foreign companies that have been granted permission to issue electronic money or provide payment services, cf. Annex 1, items 1-8, in another EU or EEA country, only Chapters 4-11 apply, with the exception of Section 126.

Subsection 3. For agents in Denmark of foreign companies that have been granted permission to provide payment services, cf. Annex 1, items 1-8, in another EU or EEA country, only Chapters 4-11 apply, with the exception of Section 126 and Section 127, subsection 1.

Subsection 4. For cross-border services provided in Denmark by foreign companies that have been granted permission to issue electronic money or provide payment services, cf. Annex 1, items 1-8, in another EU or EEA country, only Chapters 4-11 apply, with the exception of Section 126 and Section 127, subsection 1.

Subsection 5. Sections 66, 75, 77, subsection 1, items 1 and 2, 79, subsection 2, 82, subsections 1 and 2, Sections 96, 99, 100, 104, 104a, 108, 117-119, 122, 123, and 125 apply to non-remunerated electronic services that can be used to acquire goods or services, and payment transactions where the payer's consent to carry out the transaction is given with the aid of telecommunications equipment and the payment is made to the operator running the communication network, which only acts as an intermediary between the user of the payment service and the supplier of goods and services, without these services constituting a payment service covered by Annex 1, regardless of Section 5, item 17.

Subsection 6. Section 125 applies to businesses that process information about where a payer has used a payment service and what it has been used for, regardless of Section 5.

Subsection 7. The Minister for Industry and Business may grant exemptions, in whole or in part, from Sections 26-29, 42, and 50-59, Section 81, subsections 1-3, Sections 112 and 120-123, Section 124, subsection 4, and Section 125, which thereby do not apply to a specific service or specific types of services. The Minister for Industry and Business may also set supplementary rules for specific types of services.

Subsection 8. The Minister for Industry and Business may, for payment instruments covered by Section 5, items 14-16, grant exemptions, in whole or in part, from Chapters 5-7, which thereby do not apply to a specific payment instrument or specific types of payment instruments. The Minister for Industry and Business may also set supplementary rules for specific types of payment instruments.

Subsection 9. The Minister for Industry and Business may, for services and payment transactions covered by Section 1, subsection 5, grant exemptions, in whole or in part, from Section 66, Section 75, Section 77, subsection 1, items 1 and 2, Section 79, subsection 2, Section 82, subsections 1 and 2, and Sections 96, 99, 100, 104, 104a, 108, 117-119, 122, 123, and 125, which thereby do not apply to a specific service or payment transaction or specific types of services or payment transactions. The Minister for Industry and Business may also set supplementary rules for specific types of services or payment transactions.

1. The Act contains provisions implementing parts of Directive 2015/2366/EU of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, OJ L 337, 23.11.2015, p. 35 (PSD2), Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions, OJ L 267, 10.10.2009, p. 7 (EMD2), and parts of Directive 2019/878/EU of the European Parliament and of the Council of 20 May 2019 amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers, and capital conservation measures, OJ L 150, 07.06.2019, p. 253 (CRD V) and parts of Directive 2022/2556/EU of the European Parliament and of the Council of 14 December 2022, OJ L 333, 27.12.2022, p. 153-163.

Danish Statute Journal A 2025 Published on 13 June 2025 10 June 2025. No. 651. Ministry of Industry and Business, Financial Supervisory Authority, file no. 25-007075 CQ003239

Section 2. Electronic money may only be issued in Denmark by companies that have permission as an electronic money institution under Section 8, or by credit institutions, Danmarks Nationalbank, and public authorities, cf. however subsection 2.

Subsection 2. Electronic money may also be issued in Denmark by companies with a limited permission to issue electronic money, cf. Section 50.

Section 3. Payment services may only be provided in Denmark by companies that have permission as a payment institution or electronic money institution under Sections 8 and 9, or by credit institutions, Danmarks Nationalbank, and public authorities, cf. however subsection 2.

Subsection 2. Payment services may also be provided in Denmark by companies with a limited permission to provide payment services, cf. Section 51.

Section 4. Chapters 5-8 apply to payment transactions where all the involved payment service providers are established in an EU or EEA country, and when the payment transaction is denominated in euro or another EU or EEA currency.

Subsection 2. Chapters 5-8 with the exception of Section 67, subsection 1, item 2, Section 72, subsection 1, item 2, letter e, Section 76, Section 113, Section 114, and Section 120 apply to those parts of payment transactions that are carried out in a country within the European Union where all the involved payment service providers are established in another EU or EEA country, when the payment transaction is not denominated in euro or another EU or EEA currency.

Subsection 3. Chapters 5-8 with the exception of Section 67, subsection 1, item 2, Section 72, subsection 1, item 2, letter e, Section 72, subsection 1, item 5, letter f, Sections 76, 101, 102, 104, 104a, and 106, Section 113, subsection 1, Section 120, and Section 121, subsections 1 and 3, apply to those parts of payment transactions that are carried out in countries within the European Union or in a country with which the Union has concluded an agreement in the financial area, where either only the payer's or the payee's payment service provider is established in a country within the European Union or in a country with which the Union has concluded an agreement in the financial area, regardless of which currency the payment transaction is denominated in.

Section 5. This Act does not apply to the following activities etc.:

1. Payment transactions that consist exclusively of payment in cash directly from a payer to a payee, cf. however Section 81.
2. Payment transactions from a payer to a payee through a commercial agent who has authority from the payer or the payee to negotiate or conclude sales or purchases of goods or services on behalf of either the payer or the payee.
3. Commercial physical cash transport.
4. Payment transactions that involve non-commercial collection and delivery of cash within the framework of public interest activities.
5. Services where a payee, upon explicit request from a payer, makes a cash withdrawal to this person in immediate connection with the carrying out of a payment transaction regarding the purchase of goods or services.
6. Exchange of cash, without the funds being deposited in a payment account.
7. Payment transactions based on paper-based cheques, travellers' cheques, money orders, or travellers' cheques.
8. Payment transactions carried out within the framework of a system for the settlement of payments or securities between settlement agents, central counterparties, clearing houses, central banks, or other participants in the system and providers of payment services, cf. however Section 64.
9. Payment transactions regarding asset management in connection with securities, including dividends, income, or other distributions, redemption, or sale, carried out by the legal persons mentioned in item 8 or by fund managers, credit institutions, or mortgage credit institutions, collective investment undertakings for transferable securities (CIUTS), or management companies providing investment services, or other entities authorized to hold financial instruments in custody.
10. Services provided by a provider of technical services that support the provision of payment services, when the provider is not in possession of the funds to be transferred at any time, and this does not concern services covered by Annex 1, items 7 and 8, cf. however Section 122.
11. Payment transactions on own account between a payment service provider and its agents or branches.
12. Payment transactions and related services between a parent company and its subsidiaries or between subsidiaries of the same parent company, provided that the payment service provider carrying out the transaction is a company within the same group.
13. Services regarding cash withdrawals from ATMs on behalf of one or more card issuers, provided the provider is not a party to the framework agreement concluded with the customer regarding cash withdrawal from a payment account, and the provider does not carry out any of the other payment services listed in Annex 1, cf. however Sections 67, 68, 70, 71, and 117.
14. Payment instruments that can only be used to acquire goods and services from the issuer itself, or from a limited network of providers under a business agreement directly with the issuer of the payment instrument, cf. however Section 61 and Chapters 5-7.
15. Payment instruments that can only be used to acquire a very limited number of goods and services, cf. however Section 61 and Chapters 5-7.
16. Payment instruments with specific social or tax purposes, regulated by a public authority and which can only be used in Denmark to acquire specific goods or services from suppliers who have a business agreement with the issuer, cf. however Section 61 and Chapters 5-7.
17. Payment transactions carried out by a provider of electronic communications networks or communication services on behalf of a subscriber in addition to the communication service, cf. however Section 62, provided the transaction: a) is billed via the invoice linked to the subscription, b) is used for donations to public interest activities, purchase of tickets, or purchase of digital content and voice-based services, and c) does not exceed a value equivalent to 50 euros or the total value of transactions for a single subscriber does not exceed a value equivalent to 300 euros per month.
18. Electronic money up to 3,000 DKK stored on an instrument with limited use, cf. items 14 or 15, where no replenishment is possible, and where the issuer's total liabilities arising from outstanding electronic money at no time exceed an amount corresponding to the value of 5 million euros, cf. however Section 96.

Section 6. This Act may not be derogated from to the detriment of holders of electronic money or users of payment services, cf. however subsections 2 and 3 and Sections 79 and 116.

Subsection 2. An issuer of electronic money may agree with a holder who is not a consumer that Section 96 shall not apply.

Subsection 3. A provider of payment services may agree with a user who is not a consumer that Chapters 5 and Section 80, Section 82, subsection 3, and Sections 97, 98, 100-102, 104, 104a, 111, 112, 117-119, and 125 shall not apply.

Subsection 4. Sections 113 and 114 may be derogated from in all customer relationships except:

1. Payment transactions in euro where no currency conversion takes place.
2. Payment transactions in Danish kroner in Denmark.
3. Payment transactions where only currency conversion between euro and Danish kroner takes place in Denmark, and in the case of cross-border payment transactions, when the payment transaction is carried out in euro.

Subsection 5. For payment transactions carried out in countries within the European Union or in a country with which the Union has concluded an agreement in the financial area, the deadline set in Section 113, subsection 1, may not exceed 4 working days after the time of receipt, regardless of subsection 4, cf. Section 109.

Definitions

Section 7. In this Act, the following terms are understood as:

1. Payment service: A service covered by Annex 1.
2. Payment institution: A legal person that has been granted permission to provide payment services, cf. Section 9, and institutions that have been granted permission in another EU or EEA country.
3. Electronic money institution: A legal person that has been granted permission to issue electronic money, cf. Section 8, and institutions that have been granted permission in another EU or EEA country.
4. Payment transaction: An act initiated by a payer or on behalf of this person or by a payee with the aim of depositing, transferring, or withdrawing funds, regardless of any underlying obligations between the payer and the payee.
5. Payment order: An instruction from a payer or a payee to a payment service provider to carry out a payment transaction.
6. Electronic money: Electronically or magnetically stored monetary value representing a claim on the issuer, which is issued upon receipt of funds for the purpose of carrying out payment transactions, and which is accepted by persons other than the issuer of the electronic money.
7. Provider: A natural or legal person who provides payment services and is covered by Section 3.
8. Issuer: A natural or legal person who issues electronic money and is covered by Section 2.
9. Account servicing payment service provider: A provider that maintains a payment account for a user.
10. Payer: A natural or legal person who is the holder of a payment account from which payment orders can be issued or received, or, if there is no payment account, a natural or legal person who issues a payment order.
11. Payee: A natural or legal person who is the intended recipient of the funds involved in a payment transaction.
12. Holder of electronic money: A natural or legal person who is the owner of electronic money and thereby has a claim against an issuer of electronic money.
13. Payment system: A system for the transfer of funds with formal and standardized routines and common rules for the processing, clearing, or settlement of payment transactions.
14. User: A natural or legal person who uses a payment service either as a payer or as a payee or as both.
15. Consumer: A natural person acting for a purpose outside their trade, business, craft, or profession.
16. Payment account: An account established in the name of one or more users for the purpose of carrying out payment transactions.
17. Funds: Banknotes and coins, balances on accounts, and electronic money.
18. Payment instrument: A personal instrument or a set of procedures agreed between the user and the provider, which the user uses to initiate a payment order.
19. Micropayment instrument: A payment instrument that, according to a framework agreement, exclusively relates to specific payment transactions with a value not exceeding a value equivalent to 60 euros, or which either has a value limit equivalent to 300 euros or does not store funds with a value exceeding 500 euros.
20. Payment initiation service: A service that initiates a payment order upon instruction from a user with the aim of carrying out a payment transaction from a payment account provided by another provider than the payment initiation service provider.
21. Account information service: A service that provides a user with consolidated information about one or more of their payment accounts, provided by one or more account servicing payment service providers.
22. Money remittance: A payment service where funds are received from a payer without opening a payment account in the name of the payer or the payee, solely for the purpose of transferring an equivalent amount to a payee or another payment service provider on behalf of the payee, or where such funds are received on behalf of the payee and made available to them.
23. Direct debit: A payment service for debiting a payer's payment account, where a payee, based on consent from the payer to the payee, the payee's payment service provider, or the payer's payment service provider, initiates a payment transaction.
24. Credit transfer: A payment service that credits a payee's payment account with one or more payment transactions from a payer's payment account to the payee's payment account based on instructions from the payer themselves.
25. Acquiring of payment transactions: A payment service provider that has entered into an agreement with a payee regarding the receipt and processing of payment transactions with the aim of transferring funds to the payee.
26. Issuance of payment instruments: A payment service provider that enters into an agreement with a payer to issue a payment instrument that can initiate and process the payer's payment transactions.
27. Working day: A day when the relevant provider of the payer or payee involved in the carrying out of a payment transaction is open as required for the carrying out of a payment transaction.
28. Framework agreement: An agreement on payment services that regulates the future execution of individual and successive payment transactions, and which may contain obligations and conditions for the establishment of a payment account.
29. Authentication: A procedure that enables a payment service provider to verify the identity of the user or the validity of the use of a specific payment instrument, including the use of the user's personal security elements.
30. Strong customer authentication: Authentication based on the use of two or more elements that are categorized as knowledge, possession, and inherence, which are independent, so that a breach of one element does not compromise the reliability of the other elements, and is designed in such a way that the confidentiality of the authentication data is protected.
31. Personal security element: Personalized elements made available by the provider to the user for the purpose of performing authentication.
32. Remote payment: A payment transaction initiated via the internet or another device that can be used for remote communication.
33. Sensitive payment data: Data, including personal security elements, that can be used to commit fraud.
34. Agent: A natural or legal person acting on behalf of a payment institution in the provision of payment services.
35. Branch: A division that constitutes a non-independent part of an electronic money institution or payment institution, and which, if it is a payment institution, carries out payment transactions on behalf of this. Divisions established in another EU or EEA country than the country where the payment institution has its head office constitute together one branch.
36. Remote communication device: A device that can be used to conclude a payment service agreement without simultaneous physical presence of the payment service provider and the user of the payment service.
37. Durable medium: A means that enables the user to store information addressed personally to them with the possibility of future use for a period adapted to the purpose of the information, and which allows for unchanged reproduction of the stored information.
38. Unique identifier: A combination of letters, numbers, or symbols that a payment service provider provides to a user, which the user must specify to unambiguously identify another user of the payment service or the user's own payment account for the purpose of carrying out a payment transaction.
39. Payment brand: Any physical or digital name, word, sign, or symbol, or a combination thereof, that can indicate the payment card scheme used to carry out card-based payment transactions.
40. Qualifying holding: A direct or indirect holding of at least 10% of the capital or voting rights, or a holding that makes it possible to exercise significant influence over the management of an electronic money institution or a payment institution.
41. Payment transaction data: Personal data about where a user has used a payment service and what has been purchased with the payment service.

Chapter 2 Permission

Permission for electronic money institution and payment institution

Section 8. Companies that issue electronic money, cf. Section 2, subsection 1, must have permission as an electronic money institution, cf. however Section 50.

Section 9. Companies that provide payment services according to Annex 1, cf. Section 3, subsection 1, must have permission as a payment institution, cf. however Section 51, electronic money institution, cf. however Section 50, or provider of account information services, cf. Section 60. A permission may be limited to only concern one or more of the payment services mentioned in Annex 1.

Section 10. The Financial Supervisory Authority grants permission as an electronic money institution or payment institution under Sections 8 or 9, when the following requirements are met:

1. The company is operated as a public limited company, a private limited company, a cooperative with limited liability, or an association with limited liability, and the company has a board of directors and a management.
2. The company has its head office and domicile in Denmark and carries out at least part of its activities in Denmark.
3. The company meets the requirements for start-up capital, cf. Sections 12 and 13.
4. The members of the company's board of directors and management, the person responsible for anti-money laundering prevention, cf. Section 7, subsection 2, of the Anti-Money Laundering Act, and members of the actual management who are responsible for compliance or anti-money laundering prevention, meet the requirements for suitability and honesty, cf. Section 30.
5. The company's owners of qualifying holdings, cf. Section 7, item 40, meet the criteria in Section 23.
6. The company does not have close links, cf. Section 5, subsection 1, item 17, of the Financial Business Act, to other companies or persons that could hinder the performance of the Financial Supervisory Authority's tasks.
7. The company has sound and effective organizational structures, business processes, and procedures, cf. Section 25.
8. The company has sufficient procedures that ensure that it can meet its obligations under the Anti-Money Laundering Act.
9. The company has taken appropriate measures to protect the funds belonging to the users of payment services, cf. Section 35.
10. The company is assessed to be capable of carrying out sound operations.

Subsection 2. A company applying for permission to provide payment initiation services, cf. Annex 1, item 7, or account information...