Regulation on the establishment of requirements for credit transfers and direct debits transactions in euro

1.3.payment transactions through a payment card or similar device, including cash withdrawals, unless the payment card or similar device is used only to generate the information required to directly make a credit transfer or direct debit to and from a payment account identified by BBAN or IBAN; 1.4.payment transactions by means of any telecommunication, digital or ICT device, if such payment transactions do not result in a credit transfer or direct debit to and from a payment account identified by BBAN or IBAN; 1.5.transactions of money remittance as defined in subparagraph 1.21 of paragraph 1 of Article 4 of Law No. 08/L-328 on Payment Services; 1.6.payment transactions transferring electronic money, unless such transactions result in a credit transfer or direct debit to and from a payment account identified by BBAN or IBAN.
2. Where payment schemes are based on payment transactions by credit transfers or direct debits but
have additional optional features or services, this Regulation applies only to the underlying credit transfers or direct debits.
Article 3
Definitions

1. For the purpose of this Regulation, and unless the context otherwise requires, the following
   definitions apply:
   1.1. credit transfer - means a national or cross-border payment service for crediting a payee’s
   payment account with a payment transaction or a series of payment transactions from a payer’s payment account by the PSP which holds the payer’s payment account, based on an instruction given by the payer;
   1.2. direct debit - means a national or cross-border payment service for debiting a payer’s
   payment account, where a payment transaction is initiated by the payee on the basis of the payer’s consent,
   1.3. payment initiation channel - means any method, device or procedure through which
   payers can place payment orders with their PSP for a credit transfer, including online banking, a mobile banking application, an automated teller machine, or in any other way on the premises of the PSP;
   1.4. payment transaction - means an action, initiated by the payer or payee, or through the
   payee, consisting of the placement, transfer or withdrawal of funds, regardless of the underlying obligations between the payer and the payee;
   1.5. payment order - means an instruction from the payer or the payee to his payment service
   provider to request the execution of a payment transaction;
   1.6. 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;
   1.7. name of the payee - means, in respect of a natural person, the name and surname and, in
   respect of a legal person, the commercial or legal name;
   1.8. PSP - means a Payment Service Provider;

1.9. payer - means a natural or legal person who holds a payment account and allows a payment
order from that payment account or, where there is no payment account, a natural or legal person who makes a payment order to a payee’s payment account;
1.10. payment beneficiary/payee - means a natural or legal person who is the intended recipient
of funds that have been the subject of a payment transaction;
1.11. payment system - means a funds transfer system with formal and standardized
arrangements and common rules for the processing, clearing and/or settlement of payment transactions;
1.12. payment scheme - means a single set of rules, practices, standards and/or implementation
guidelines agreed between PSPs for the execution of payment transactions within Kosovo and across the SEPA area, and which is separated from any infrastructure or payment system that supports its operation;
1.13. PSU - or “payment service user” means a natural or legal person making use of a payment
service in the capacity of payer or payment payee;
1.14. BBAN - means a payment account number identifier, which unambiguously identifies an
individual payment account with a PSP in Kosovo, and which can only be used for national payment transactions while the same payment account is identified by IBAN for cross￾border payment transactions;
1.15. IBAN - means an international payment account number identifier, which unambiguously
identifies an individual payment account, the elements of which are specified by the International Organization for Standardization (ISO);
1.16. BIC - means a business identifier code that unambiguously identifies a PSP, the elements
of which are specified by the ISO;
1.17. ISO 20022 XML standard - means a standard for the development of electronic financial
messages as defined by the ISO, encompassing the physical representation of the payment transactions in XML syntax, in accordance with business rules and implementation guidelines of Kosovo or SEPA schemes for payment transactions falling within the scope of this Regulation;
1.18. large-value payment system - means a payment system the main purpose of which is to
process, clear or settle single payment transactions of high priority and urgency, and primarily of large amount;
1.19. settlement date - means a date on which obligations with respect to the transfer of funds
are discharged between the payer’s PSP and the payee’s PSP;
1.20. collection - means a part of a direct debit transaction starting from its initiation by the payee
until its end through the normal debiting of the payer’s payment account;
1.21. mandate - means the expression of consent and authorization given by the payer to the
payee and (directly or indirectly via the payee) to the payer’s PSP to allow the payee to initiate a collection for debiting the payer’s specified payment account and to allow the payer’s PSP to comply with such instructions;

1.22. retail payment system - means a payment system the main purpose of which is to process,
clear or settle credit transfers or direct debits which are primarily of small amount, and that is not a large-value payment system;
1.23. cross-border payment transaction - means a payment transaction processed
electronically, initiated by a payer or by the payee where one of the PSPs involved in the transaction, whether is the payer’s PSP or payee’s PSP, is located in the Republic of Kosovo and the other PSP is located in another country or territory within the SEPA area;
1.24. national payment transaction - means a payment transaction initiated by a payer or by a
payee, where the payer’s PSP and the payee’s PSP are both located in Kosovo;
1.25. reference party - means a natural or legal person on behalf of whom a payer makes a
payment, or a payee receives a payment;
1.26. CBK - means the Central Bank of Republic of Kosovo;
1.27. SEPA - means the Single Euro Payments Area;
1.28. SEPA area - means the geographical scope of the SEPA schemes as determined by the
criteria established by the EPC;
1.29. SEPA member - means a country or territory included in the SEPA area;
1.30. SEPA payment - means a payment transaction carried out using a SEPA scheme
established by the European Payments Council (EPC);
1.31. SEPA payment scheme - for the purposes of this Regulation, means a harmonised set of
rules, technical standards and procedures governing the execution of credit transfers, direct debits and instant credit transfers in euro within the SEPA area, applicable to both cross￾border and national payments;
1.32. fee - means any amount charged to a PSU by a PSP, which is directly or indirectly related
to a payment transaction, any amount charged to a PSU by a PSP or by a party providing foreign exchange services in accordance with Article 59 of the Payment Services Law, for a foreign exchange service, or a combination thereof;
1.33. national corresponding payment - means a national credit transfer, instant credit transfer
or direct debit transaction executed within the Republic of Kosovo, which corresponds to the relevant SEPA payment in terms of payment instrument, priority, amount limit, initiation channel, execution method and applicable fees;
1.34. monetary means - means banknotes and coins, cash on account and electronic money;
1.35. instant credit transfer - means a credit transfer that is executed immediately, 24 hours a
day and on any calendar day;
1.36. payee verification - means a service that ensures verification of the beneficiary to whom
the payer intends to send a credit transfer;
1.37. consumer - means a natural person acting for purposes other than his/her trade, business or
profession;
1.38. payment initiation service provider - means a payment service provider carrying out
business activities as defined in Article 4, subparagraph 1.17 of the Payment Services Law.

1.39. targeted restrictive financial measure - means Targeted Financial Sanctions, as defined
in Law 08/L-146 on Implementation of Targeted International Financial Sanctions;
1.40. EPC - means the European Payments Council;
1.41. ISO - means the International Organization for Standardization;
1.42. EBA - means the International Organization for Standardization.
1.43. Law on Payment Services - means Law No. 08/L-328 on Payment Services.
1.44. Law on the Prevention of Money Laundering and Combating Terrorist Financing -
means the legislation in force on the Prevention of Money Laundering and Combating Terrorist Financing;
2. Unless otherwise specifically provided for in paragraph 1 of this Article, for the purposes of this
Regulation and any other measure implementing it, terms used shall have the same meaning as defined in the Law on Payment Services.
Article 4
Requirements for executing credit transfer and direct debit transactions

1. PSPs shall carry out credit transfer and direct debit transactions in accordance with the following
   requirements:
   1.1. they must use the payment account identifier specified in point (1)(a) of Annex I for the
   identification of payment accounts’ regardless of the location of the PSP involved in the payment transaction;
   1.2. they must use the message formats specified in point (1)(b) of Annex I, when transmitting
   payment transactions to another PSP or via a retail payment system;
   1.3. they must ensure that PSUs use the payment account identifier specified in point (1)(a) of
   Annex I for the identification of payment accounts, regardless of whether the payer’s PSP
   and the payee’s PSP or the sole PSP in the payment transaction is located in Kosovo;
   1.4. they must ensure that where a PSU that is not a consumer or a microenterprise, initiates or
   receives individual credit transfers or individual direct debits which are not transmitted individually, but are bundled together for transmission, the message formats specified in point (1)(b) of Annex I are used.

2. Without prejudice to subparagraph 1.2 of the first paragraph, PSPsshall, upon the specific request
   of a PSU, use the message formats specified in point (1)(b) of Annex I of thisregulation in relation to that PSU.

3. PSPs shall carry out credit transfers in accordance with the following requirements, subject to any
   obligation laid down in Law No. 06/L-082 on the Protection of Personal Data:
   3.1. the payer’s PSP must ensure that the payer provides the data elements specified in point
   (2)(a) of Annex I;
   3.2. the payer’s PSP must provide the data elements specified in point (2)(b) of Annex I to the
   payee’s PSP;
   3.3. the payee’s PSP must provide or make available to the payee the data elements specified in
   point (2)(d) of Annex I.

4. PSPs shall carry out direct debits in accordance with the following requirements, subject to any
   obligation laid down in Law No. 06/L-082 on the Protection of Personal Data:
   4.1. the payee’s PSP must ensure that:
   4.1.1. the payee provides the data elements specified in point (3)(a) of Annex I with the first
   direct debit and one-off direct debit and with each subsequent payment transaction;
   4.1.2. the payer gives consent both to the payee and to the payer’s PSP (directly or indirectly
   via the payee), the mandates, together with later modifications or cancellation, are stored by the payee or by a third party on behalf of the payee and the payee is informed of this obligation by the PSP in accordance with article 44 and 45 of the Law No. 08/L-328 on Payment Services.
   4.2. the payee’s PSP must provide the payer’s PSP with the data elements specified in point
   (3)(b) of Annex I;
   4.3. the payer’s PSP must provide or make available to the payer the data elements specified in
   point (3)(c) of Annex I;
   4.4. the payer must have the right to instruct its PSP:
   4.4.1. to limit a direct debit collection to a certain amount or periodicity or both;
   4.4.2. where a mandate under a payment scheme does not provide for the right to a refund,
   to verify each direct debit transaction, and to check whether the amount and periodicity of the submitted direct debit transaction is equal to the amount and periodicity agreed in the mandate, before debiting their payment account, based on the mandate-related information;
   4.4.3. to block any direct debits to the payer’s payment account or to block any direct debits
   initiated by one or more specified payees or to authorize direct debits only initiated by one or more specified payees.
   4.5. Where neither the payer nor the payee is a consumer, PSPs are not required to comply with
   subparagraph 4.4, sub-subparagraphs 4.4.1, 4.4.2 or 4.4.3 hereunder;
   4.6. The payer’s PSP shall inform the payer of the rights referred to in subparagraph 4.4 in
   accordance with Articles 51 and 52 of the Law No. 08/L-328 on Payment Services;
   4.7. Upon the first direct debit transaction or a one-off direct debit transaction and upon each
   subsequent direct debit transaction, the payee shall send the mandate-related information to his PSP and the payee’s PSP shall transmit that mandate-related information to the payer’s PSP with each direct debit transaction.

5. In addition to the requirements referred to in paragraphs 1 and 2 hereunder, the payee accepting
   credit transfers shall communicate its payment account identifier specified in point (1)(a) of the
   Annex, when a credit transfer is requested.

6. Before the first direct debit transactions, a payer shall communicate its payment account identifier
   specified in point (1)(a) of the Annex.

7. Where the framework agreement between the payer and the payer’s PSP does not provide for the
   right to a refund, the payer’s PSP shall, without prejudice to sub-subparagraph 4.1.2 above, verify each direct debit transaction to check whether the amount of the submitted direct debit transaction

is equal to the amount and periodicity agreed in the mandate before debiting the payer’s payment account, based on the mandate-related information.
8. PSPs shall not require PSUs to indicate the BIC of the PSP of a payer or of the PSP of a payee.
9. The payer’s PSP and the payee’s PSP shall not levy additional charges or other fees on the read￾out process to automatically generate a mandate for those payment transactions initiated through
or by means of a payment card at the point of sale, which result in direct debit.
Article 5
Instant credit transfer transactions

1. PSPs that offer their PSUs a payment service for sending and receiving credit transfers must also
   offer all their PSUs the service for sending and receiving instant credit transfers.
2. PSPs defined in paragraph 1 of this Article shall ensure that all payment accounts that are
   accessible for credit transfers are also accessible for instant credit transfers 24 hours a day and on every calendar day.
3. For the purposes of executing instant payments, the time of receipt of a payment order for an
   instant credit transfer is the moment when it is received by the payer's PSP, regardless of the time or calendar day.
4. For the purposes of executing instant payments, if the payer and the payer's PSP agree that the
   execution of the payment order for an instant credit transfer is to be carried out at a specific time on a specific day, or at the moment when the payer has made the funds available to the PSP, the time of receipt of the payment order for an instant credit transfer is deemed to be the agreed time, regardless of the hour or calendar day.
5. With the exception of paragraphs 3 and 4 of this Article, the time of receipt of the payment order
   for an instant credit transfer shall be:
   5.1. for a non-electronic payment order for an instant credit transfer, the moment when the payer's
   PSP has entered the payment order information into its internal system, which must occur as soon as possible after the non-electronic order for an instant credit transfer has been placed by the payer with the payer's PSP;
   5.2. for an individual payment order for an instant credit transfer belonging to a package, as
   referred to in paragraph 9 of this Article, where the conversion of that package into individual payment transactions is carried out by the payer's PSP, the moment when the resulting payment transaction is unbundled by the payer's PSP; the payer's PSP shall commence the conversion of the package immediately after it has been submitted by the payer to the payer's PSP and complete this conversion as soon as possible;
   5.3. for a payment order for an instant credit transfer from payment accounts not denominated in
   euro, the moment when the amount of the payment transaction is converted into euro; this currency conversion must be carried out immediately after the payment order for an instant credit transfer has been submitted by the payer to the payer's PSP.
6. When carrying out instant credit transfers, PSPs, in addition to the requirements set out in Article
   4 of this Regulation, must meet the following requirements:

6.1. PSPs must ensure that payers are able to submit a payment order for an instant credit transfer
through all payment initiation channels whereby they can submit a payment order for other credit transfers;
6.2. immediately upon the receipt of a payment order for an instant credit transfer, the payer's PSP
shall verify whether all necessary conditions for processing the payment transaction have been met and whether the necessary funds are available, reserve or debit the amount of the payment transaction from the payer's account, and promptly deliver the payment transaction to the payee's PSP;
6.3. The payee's PSP shall, within 10 seconds upon the receipt of the payment order for an instant
credit transfer from the payer's PSP, make the amount of the payment transaction available to the payee's payment account in the currency in which the payee's account is denominated and confirm the execution of the payment transaction to the payer's PSP;
6.4. The payee's PSP must ensure that the credit value date for the payee's payment account is the
same as the date on which the payee's payment account is credited by the payee's PSP with the amount of the payment transaction; and
6.5. promptly upon the receipt of the confirmation of execution referred to in subparagraph 6.3 of
this paragraph, or in the event that such confirmation of completion is not received by the payer's PSP within 10 seconds upon the receipt of the payment order for an instant credit transfer, the payer's PSP shall, free of charge, inform the payer and, where applicable, the payment initiation service provider, whether the amount of the payment transaction has been made available on the payee's payment account.
7. For the purposes of executing instant payments, if the payer's PSP has not received a message from
the payee's PSP confirming that the funds have been made available on the payee's payment account within 10 seconds upon the receipt, the payer's PSP must immediately restore the payer's payment account to the state it would have been in if the transaction had not occurred.
8. Upon request by the PSU, a PSP shall offer the PSU the possibility to set a limit determining the
maximum amount that can be sent through an instant credit transfer. This limit may be either on a daily basis or per transaction, at the sole discretion of the PSU. PSPs shall ensure that PSUs are able to modify this maximum amount at any time before the submission of a payment order for an instant credit transfer. Where a PSU payment order for an instant credit transfer exceeds, or leads to the exceeding of, the maximum amount, the payer's PSP shall not execute the payment order for that instant credit transfer, shall notify the PSU thereof and shall inform it how to modify the maximum amount.
9. When providing a payment service for sending and receiving instant credit transfers, PSPs shall
offer PSUs the possibility to submit several payment orders as a package, if PSPs offer such a possibility to PSUs for other credit transfers. PSPs shall not set limits on the number of payment orders that can be submitted in a package for instant credit transfers that are lower than the limits they set for packages for other credit transfers.
Article 6
Verification of the payee in case of credit transfer

1. The payer's PSP must offer the payer a service that ensures the verification of the payee to whom
   the payer intends to send a credit transfer (verification service). The payer's PSP must perform the verification service immediately after the payer has provided the relevant information on the beneficiary and before the payer is given the opportunity to authorise that credit transfer. The payer's PSP must offer the verification service regardless of the payment initiation channel used by the payer to submit a payment order for a credit transfer. The verification service must be provided in accordance with the following:
   1.1. where the payment account identifier specified in paragraph 1 point (a) of Annex I of this
   Regulation and the name of the payee are placed in the payment order for a credit transfer by the payer, the payer's PSP shall offer a service for matching the payment account identifier specified in paragraph 1 point (a) of Annex I with the name of the payee. At the request of the payer's PSP, the payee's PSP shall verify whether the payment account identifier specified in paragraph 1 point (a) of Annex I and the name of the payee provided by the payer do indeed match. If yes, the payer's PSP shall, based on the information provided by the payee's PSP, notify the payer thereof and inform the payer that the credit transfer authorisation may lead to the transfer of funds to a payment account not held by the payee indicated by the payer. Where the name of the payee provided by the payer and the payment account identifier specified in paragraph 1 point (a) of Annex I almost match, the payer's PSP shall indicate to the payer the name of the payee associated with the payment account identifier specified in paragraph 1 point (a) of Annex I, provided by the payer.
   1.2. where the payee is a legal person and the payer's PSP offers a payment initiation channel that
   enables the payer to submit a payment order by providing the payment account identifier specified in point (1)(a) of Annex I of this Regulation together with other data elements, in addition to the name of the payee, that clearly identify the payee, such as a Unique Identification Number defined in the national legal framework, and where these same data elements are available in the internal system of the payee's PSP, the latter shall, at the request of the payer's PSP, verify whether the payment account identifier specified in point (1)(a) of
   Annex I of this Regulation and the data element provided by the payer do match. If the
   payment account identifier specified in point (1)(a) of Annex I of this Regulation and the data element provided by the payer do not match, the payer's PSP, based on the information provided by the payee's PSP, shall notify the payer thereof.
   1.3. where a payment account identified by a payment account identifier specified in paragraph
   1 point (a) of Annex I, provided by the payer, is held by a PSP on behalf of several payees, the payer may provide additional information to the payer's PSP enabling the unambiguous identification of the payee. The PSP holding that payment account on behalf of several payees or, where applicable, the PSP holding that payment account shall, at the request of the payer's PSP, confirm whether the payee indicated by the payer is among the multiple payees on whose behalf the payment account is held. The payer's PSP shall notify the payer if the payee indicated by the payer is not among the multiple payees on whose behalf the payment account is held.
   1.4. in cases other than those specified in subparagraphs 1.1, 1.2 and 1.3 of this paragraph, and
   in particular where a PSP offers a payment initiation channel that does not require the payer to establish both the payment account identifier specified in paragraph 1(a) of Annex I and the name of the payee, the PSP shall ensure that the payee to whom the payer intends to send

a credit transfer is correctly identified. To this end, the PSP must inform the payer in a manner that enables the payer to verify the payee before authorising the credit transfer.
2. Where the payment account identifier specified in paragraph 1(a) of Annex I or the name of the
payee is provided by a payment initiation service provider, and not by the payer, that payment initiation service provider shall ensure that the information relating to the payee is accurate.
3. For the purposes of paragraph 1, subparagraph 1.4, the PSPs and for the purposes of paragraph 2,
the payment initiation service providers shall maintain robust internal procedures to ensure that information about payees is accurate.
4. In case of paper payment orders, the payer's PSP must perform the service that ensures verification
at the moment of receipt of the payment order, except in cases where the payer is not present at the moment of receipt.
5. PSPs shall ensure that the performance of the service providing the verification and of the service
described in paragraph 2 does not prevent payers from authorising the credit transfer in question.
6. PSPs should offer PSUs that are not customers the opportunity to waive from receiving the service
that provides verification when submitting several payment orders as a package:
6.1. PSPs shall ensure that PSUs that have waived from receiving the verification service have
the right to choose at any time to reactivate and benefit from this service.
7. Whenever the payer's PSP notifies the payer in accordance with paragraph 1, subparagraphs 1.1,
1.2, 1.3 of this Article, that PSP shall at the same time inform the payer that the credit transfer authorisation may lead to the transfer of funds to a payment account that is not held by the payee indicated by the payer. A PSP must provide this information to a PSU that is not a consumer if this PSU chooses to waive from receiving the service that provides verification when submitting several payment orders as a package. PSPs shall inform their PSUs of the consequences regarding the PSP's liability and the PSU's reimbursement rights arising from the PSUs' decision to ignore a notification as referred to in paragraph 1, subparagraphs 1.1, 1.2, 1.3 of this Article.
8. A PSP shall not be liable for executing a credit transfer to an unintended payee on the basis of an
incorrect unique identifier, as defined in Article 88 of the Payment Services Law, provided that it has complied with the requirements of this Article:
8.1. Where the payer's PSP fails to comply with the requirements of paragraph 1 of this Article,
or where the payment initiation service provider fails to comply with the requirements of paragraph 2 of this Article, and where this failure results in an incorrectly executed payment transaction, the payer's PSP shall, without delay, reimburse the payer the amount transferred and, where applicable, restore the debited payment account to the state in which it would have been if the transaction had not taken place;
8.2. Where the non-compliance occurs because the payee's PSP, or the payment initiation service
provider, has failed to fulfil its obligations under this Article, the payee's PSP or, as the case may be, the payment initiation service provider, shall compensate the payer's PSP for the financial damage caused to it by such non-compliance;
8.3. Any other financial loss caused to the payer may be compensated in accordance with the law
applicable to the contract concluded between the payer and the relevant PSP.

Article 7
Fees related to credit transfers and verification of the payee

1. Any fees applied by a PSP to payers and beneficiaries for sending and receiving instant credit
   transfers shall not be higher than the fees applied by that PSP for sending and receiving other credit transfers of a corresponding type.
2. The services referred to in Article 6 of this Regulation must be provided to all PSUs free of charge.
   Article 8
   Screening of PSUs by PSPs offering instant credit transfers to verify whether a PSU is a person or entity subject to targeted financial restrictive measures
3. PSPs offering instant credit transfers shall verify whether any of their PSUs is a person or entity
   subject to targeted financial restrictive measures. PSPs shall carry out these screenings immediately upon the entry into force of any new targeted financial restrictive measures, as well as immediately upon the entry into force of any amendment to such measures, and at least once every calendar day.
4. When executing an instant credit transfer, the PSP of the payer and the PSP of the payee involved
   in the execution of this instant credit transfer shall not verify whether the payer or the payee, whose payment accounts are used for the execution of this instant credit transfer, are persons or entities subject to targeted financial restrictive measures, except for the screenings carried out under paragraph 1 of this Article.
5. Paragraph 2 of this Article shall not prejudice actions taken by PSPs to comply with other
   restrictive measures, as defined by the legislation in force in the country, on targeted financial sanctions, other international sanctions, and the prevention of money laundering and combating the financing of terrorism.
   Article 9
   Fees for SEPA payments and corresponding domestic payments
6. PSPs may apply fees for incoming and outgoing SEPA credit transfers, instant credit transfers and
   direct debits executed in accordance with the relevant rules of the SEPA scheme, using the shared costs principle (SCP), as provided for in Article 62, paragraph 2 of the Payment Services Law.
7. The fees applied by PSPs to payment service users shall not, under any circumstances, exceed the
   following limits:
   2.1. Any fee applied by a PSP to a PSU for outgoing SEPA payments must be the same as the fee
   applied by that PSP to a PSU for a corresponding national payment.
   2.2. The fees applied to incoming SEPA payments, if applied by the payee's PSP, shall reflect the
   relevant costs of the PSP. These fees shall, in no case, exceed the amount of EUR 3 per transaction.
8. Paragraphs 1 and 2 of this Article shall not apply to the following:
   3.1 Foreign exchange rates;

3.2 instant credit transfers, in cases where the relevant legislation requires a PSP to apply a lower
fee than the fee that would be applied for the same instant credit transfer if paragraphs 1 and 2 of this Article were applied.
Article 10
Enforcement, Improvement Measures and Penalties

1. Regarding any violation of the provisions of this Regulation, the CBK has the power to undertake
   corrective measures, impose fines and administrative penalties as defined within Article 67 of the Law on Central Bank of the Republic and Article 125 of the Law No. 10/L-026 on Payment Services.

2. Paragraphs 3 to 11 of Article 125 of the Law No. 10/L-026 on Payment Services are applicable to
   any violation of the provisions of this Regulation.
   Article 11
   Complaint and alternative dispute resolution procedures The complaint and alternative dispute resolution procedures provided for in Article 120, 121 and 122 of the Law No. 10/L-026 on Payment Services are applied in accordance with the CBK regulation on the process of handling complaints from financial institutions for any dispute regarding the rights and obligations arising from this regulation between PSUs and their PSPs.
   Article 12
   Annexes
   The integral part of this regulation is Annex I - Technical requirements.
   Article 13
   Guidelines
   PSPs shall abide, in what concerns to measures to be taken in accordance with this Regulation, unless otherwise determined by the CBK, to the relevant guidelines issued by EBA.
   Article 14
   Transitional Period

3. PSPs subject to this Regulation shall adapt their activities and operations to the provisions of this
   Regulation at least one (1) month before applying to the EPC for participation in a SEPA scheme, within the timelines determined by relevant Regulation on Payment System, but not more than a maximum period of 18 months – a period corresponding to the transitional period in Article 138 of Law No. 10/L-026 on Payment Services.

4. Notwithstanding paragraph 1 of this Article, the technical and operational infrastructure necessary
   for the implementation of Article 5 of this Regulation shall be developed and fully functional within eighteen (18) months upon the entry into force of this Regulation.

5. Notwithstanding paragraph 1 of this Article, the technical and operational infrastructure necessary
   for the implementation of Article 6 of this Regulation shall be developed and fully functional within the time limits set by the relevant Regulation on Payment Systems, but no later than twenty￾four (24) months upon the entry into force of this Regulation.

6. The CBK may issue rules, instructions or other implementing acts, whereby sets forth the rules,
   standards, procedures and operational requirements applicable to the national payment infrastructure, relating to national credit transfers, instant credit transfers and direct debit transactions.

7. The CBK shall periodically review the adequacy of the fees referred to in Article 9, paragraph 2,
   of this Regulation.
   Article 15
   Entry into force
   This Regulation shall enter into force 15 days upon its approval.
   Dr.sc. Bashkim Nurboja
   Chairperson of the Board of Central Bank of the Republic of Kosovo

ANNEX I
TECHNICAL REQUIREMENTS
(1) In addition to the essential requirements set out in Article 4, the following technical requirements shall apply to credit transfers and direct debit transactions:
(a) The payment account identifier referred to in Article 4 paragraph 1 subparagraphs 1.1 and
1.3 must be IBAN, for all credit transfers and direct debits, including national and cross￾border transactions, regardless of the location of the PSPs involved or where a sole PSP is
involved in the payment transaction.
(b) The standard for message format referred to in Article 4 paragraph 1 subparagraphs 1.2 and
1.4 must be the ISO 20022 XML standard.
(c) The remittance data field must allow for 140 characters. Payment schemes may allow for a higher number of characters, except if the device used to remit information has technical limitations relating to the number of characters, in which case the technical limit of the device applies. (d) Remittance reference information and all the other data elements provided in accordance with points (2) and (3) of this Annex I must be passed in full and without alteration between PSPs in the payment chain. (e) Once the required data is available in electronic form, payment transactions must allow for a fully automated, electronic processing in all process stages throughout the payment chain (end-to-end straight through processing), enabling the entire payment process to be conducted electronically without the need for re-keying or manual intervention. This must also apply to exceptional handling of credit transfers and direct debit transactions, whenever possible. (f) Payment schemes must set no minimum threshold for the amount of the payment transaction allowing for credit transfers and direct debits but are not required to process payment transactions with zero amount. (g) Payment schemes are not obliged to carry out credit transfers and direct debits exceeding the amount of EUR 999,999,999.99. (2) In addition to the requirements referred to in point (1), the following requirements shall apply to credit transfer transactions:
(a) The data elements referred to in Article 4 paragraph 3 subparagraph 3.1, are the following:
(i) the payer’s name and/or the IBAN of the payer’s payment account; (ii) the amount of the credit transfer; (iii) the IBAN of the payee’s payment account; (iv) where available, the payee’s name; (v) any remittance information. (b) The data elements referred to in Article 4 paragraph 3 subparagraph 3.2 are the following:
(i) the payer’s name;
(ii) the IBAN of the payer’s payment account;

(iii) the amount of the credit transfer;
(iv) the IBAN of the payee’s payment account;
(v) any remittance information;
(vi) any payee identification code;
(vii) the name of any payee reference party;
(viii) any purpose of the credit transfer;
(ix) any category of the purpose of the credit transfer.
(c) In addition, the following mandatory data elements are to be provided by the payer’s PSP to the payee’s PSP:
(i) the BIC of the payer’s PSP (if not agreed otherwise by the PSPs involved in the payment transaction); (ii) the BIC of the payee’s PSP (if not agreed otherwise by the PSPs involved in the payment transaction); (iii) the identification code of the payment scheme; (iv) the settlement date of the credit transfer; (v) the reference number of the credit transfer message of the payer’s PSP. (d) The data elements referred to in Article 4 paragraph 3 subparagraph 3.3 are the following:
(i) the payer’s name;
(ii) the amount of the credit transfer;
(iii) any remittance information
(3) In addition to the requirements referred to in point (1), the following requirements shall apply to direct debit transactions:
(a) The data elements referred to in Article 4 paragraph 4 subparagraph 4.1 sub-subparagraph 4.1.1, are the following:
(i) the type of direct debit (recurrent, one-off, first, last or reversal); (ii) the payee’s name; (iii) the IBAN of the payee’s payment account to be credited for the collection; (iv) where available, the payer’s name; (v) the IBAN of the payer’s payment account to be debited for the collection; (vi) the unique mandate reference; (vii) the date on which the payer’s mandate was signed; (viii) the amount of the collection; (ix) where the mandate has been taken over by a payee other than the payee who issued the mandate, the unique mandate reference as given by the original payee who issued the mandate;

(x) the payee’s identifier;
(xi) where the mandate has been taken over by a payee other than the payee who issued the mandate, the identifier of the original payee who issued the mandate; (xii) any remittance information from the payee to the payer; (xiii) any purpose of the collection; (xiv) any category of the purpose of the collection. (b) The data elements referred to in Article 4 paragraph 4 subparagraph 4.2, are the following:
(i) the BIC of the payee’s PSP (if not agreed otherwise by the PSPs involved in the payment transaction); (ii) the BIC of the payer’s PSP (if not agreed otherwise by the PSPs involved in the payment transaction); (iii) the payer reference party’s name (if present in dematerialized mandate); (iv) the payer reference party’s identification code (if present in dematerialized mandate); (v) the payee reference party’s name (if present in the dematerialized mandate); (vi) the payee reference party’s identification code (if present in dematerialized mandate); (vii) the identification code of the payment scheme; (viii) the settlement date of the collection; (ix) the payee’s PSP’s reference for the collection; (x) the type of mandate; (xi) the type of direct debit (recurrent, one-off, first, last or reversal); (xii) the payee’s name; (xiii) the IBAN of the payee’s payment account to be credited for the collection; (xiv) where available, the payer’s name; (xv) the IBAN of the payer’s payment account to be debited for the collection; (xvi) the unique mandate reference; (xvii) the date of signing of the mandate; (xviii)the amount of the collection; (xix) the unique mandate reference as given by the original payee who issued the mandate (if the mandate has been taken over by another payee than the payee who issued the mandate); (xx) the payee’s identifier; (xxi) the identifier of the original payee who issued the mandate (if the mandate has been taken over by a payee other than the payee who issued the mandate); (xxii) any remittance information from the payee to the payer. (c) The data elements referred to in Article 4 paragraph 4 subparagraph 4.3 are the following:

(i) the unique mandate reference;
(ii) the payee’s identifier;
(iii) the payee’s name;
(iv) the amount of the collection;
(v) any remittance information;
(vi) the identification code of the payment scheme.