LIZ - PAYMENTS DIRECTIVE GOOD FOR CONSUMERS AND BUSINESS ALIKE

6.25.24pm BST (GMT +0100) Thu 26th Apr 2007

A key European Parliament report on the Payment Services Directive (PSD) that should make cashless payments such as card transactions, bank transfers and direct debits simpler and cheaper, was overwhelmingly backed yesterday in Strasbourg.

Commenting, Lib Dem MEP Liz Lynne said,

"This legislation will be of great benefit to small business and consumers throughout the West Midlands. It will make it easier for non-bank payment providers to expand their businesses and compete with larger banks both within the UK and across Europe. Increased competition should result in better prices and greater efficiency for all users both consumers and business."

The legislation, covering all EU nations and currencies, sets out a legal framework for the implementation of the Single European Payments Area (SEPA) and will make cross-border payments - by credit card, debit card, electronic bank transfers and any other means - much easier and safer, giving consumers new guarantees of protection should something go wrong.

Liz added

"By 2012 consumers will also have the added assurance that an electronic payment will be made within 24 hours or 48 hours if made in paper. Currently, people often have to wait up to 7 working days to complete a transfer to another European country."