Regulatory Alerts2013-12-17
Added · Updated
Definition and Categories of Payment Processing Service Providers
The document defines a payment processing service provider as an institution providing services such as forwarding payment requests, authorizing requests on behalf of payment service providers, and clearing monetary claims. It establishes three categories of providers based on their registered office location: within the Netherlands, in a designated state, or in a non-designated state. The authorization obligation is waived for providers in designated states if their business conduct is subject to supervision that sufficiently safeguards interests protected by the Financial Supervision Act.
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A settlement agent is defined as one that provides payment processing services.
Published: 17 December 2013
A payment processing service provider is an institution that provides payment processing services. These include:
The forwarding by a (legal) person other than a communication network provider of requests made by payers by electronic means to their payment service providers for immediate confirmation that the payment orders initiated by the payers comply with the conditions set by the payment service providers
Authorising those requests on behalf of a payment service provider
Clearing
Clearing involves determining monetary claims or obligations of payment service providers in keeping with the payment instructions of payment service users.
Categories of payment processing service provider
There are three categories of payment processing service provider:
Payment processing service provider that have their registered office in the Netherlands.
Payment processing service provider their registered office in a designated state.
Payment processing service provider that have their registered office in a non-designated state.
The authorisation obligation does not apply to payment processing service provider that have their registered office in a state designated by the Minister of Finance where the conduct of the business of payment processing service provider for payment service providers which do not belong to the same group as the agent is subject to supervision, if such oversight sufficiently safeguards the interests which the Financial Supervision Act (Wet op het financieel toezicht or Wft) is intended to protect.
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