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FEES 9.1 Application and purpose

Application

FEES 9.1.1 R RP

Purpose

FEES 9.1.2 G RP

This chapter sets out the fee payable by PSR fee payers will be calculated5,6 to establish and fund the PSR.

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Introduction

FEES 9.1.3 G RP

Section 40(1) of FSBRA (The Payment Systems Regulator) requires the FCA to establish the PSR.

FEES 9.1.4 G RP
  1. (1)

    Paragraph 9 of Schedule 4 of FSBRA and the 2015 Interchange Regulations applying FSBRA in a modified form and the Payment Services Regulations applying FSBRA in a modified form6 allow3 the FCA to make rules requiring participants2 in regulated payment systems and IFR card payment systems6 to pay the FCA specified amounts or amounts calculated in a specified way to:

    1. (a)

      meet the relevant costs referred to in (2) below; and

    2. (b)

      enable the PSR to maintain adequate reserves.

  2. (1A)

    [deleted]6

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  3. (2)

    The relevant costs in (1)(a) means:

    1. (a)

      the expenses incurred, or expected to be incurred, by the PSR in connection with the discharge of its functions;

    2. (b)

      the expenses incurred by the FCA in establishing the PSR;

    3. (c)

      any other expenses incurred by the FCA in connection with the discharge of its functions under Part 5 of FSBRA; and

    4. (d)

      any expenses incurred, or expected to be incurred, by the FCA in connection with the discharge of the PSR's functions by an officer or member of staff of the FCA under arrangements made under paragraph 5 of Schedule 4 of FSBRA.

  4. (3)

    The amounts in (1) may include the expenses of the FCA in collecting PSR fees.

FEES 9.1.5 G

FEES 9 sets out the rules referred to in FEES 9.1.4 G

FEES 9.1.6 G RP

The FCA must pay to the PSR the amounts that it receives as PSR fees, apart from the following amounts (which it may keep):

  1. (1)

    expenses under FEES 9.1.4G (2)(b) to (d); and

  2. (2)

    collection costs, referred to in FEES 9.1.4G (3).

Publication of fees information

FEES 9.1.7 G RP
  1. (1)

    Paragraph 4(1) of Schedule 4 of FSBRA requires the PSR to adopt an annual budget which has been approved by the FCA.

  2. (2)

    Paragraph 6(1) of Schedule 4 of FSBRA requires the PSR to prepare an annual plan which has been approved by the FCA.

FEES 9.1.8 G RP
  1. (1)

    PSR fees will vary from year to year, depending on the PSR’s AFR and the transaction volumes and transaction values in the relevant time period5.

  2. (2)

    The PSR will publish each year the PSR’s AFR along with the total transaction volumes and transaction values for the relevant time period to enable PSR fee payers to apply the methodology in FEES 9 Annex 1R if they wish.5

  3. (3)

    [deleted]5

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FEES 9.2 PSR fees

Obligation to pay PSR fees

FEES 9.2.1 R RP

A PSR fee payer8 must pay to the FCA8 the PSR fees applicable to it and calculated by the FCA in accordance with8FEES 9 Annex 1 R:

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  1. (1)

    in full and without deduction; and

  2. (2)

    in accordance with this chapter, subject to:4

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    1. (a)

      FEES 9.2.1AR;4

    2. (b)

      FEES 9.2.1CR;4 and8

    3. (c)

      FEES 9.2.1DR.8

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FEES 9.2.1A R RP
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  1. (1)

    A PSR fee payer is not required to pay any PSR fee in accordance with FEES 9.2.1R where, in the opinion of the FCA and PSR, the costs of collection would be disproportionate to the amount payable.8

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  2. (2)

    If (1) applies in any given fee year, the transaction volumes and transaction values attributable to that PSR fee payer are not to be included in the sum of all PSR fee payers’ relevant transactions set out in columns 4 and 5 of the table in FEES 9 Annex 1R for that fee year.8

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  3. (3)

    [deleted]3

FEES 9.2.1B R RP
  1. (1)

    3If a payment service provider (A) acquires all or part of the business of another payment service provider which includes transaction volumes (B), whether by merger, acquisition or transfer, during the course of a fee year, the liability for paying the PSR fee in the following fee year in relation to B shall rest with A.

  2. (2)

    FEES 9.2.1BR(1)4 also applies when the business acquired, transferred or merged is not a legal entity but is an unincorporated business, or is in the form of assets and/or contracts.

FEES 9.2.1C R RP
FEES 9.2.1D R RP

Where FEES 9.2.1CR applies, no other acquirers or card issuers are required to pay any PSR fee for that card payment system or IFR card payment system in accordance with FEES 9.2.1R.8

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FEES 9.2.1E R RP

[deleted]8

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FEES 9.2.1F R RP

[deleted]8

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FEES 9.2.1G G RP

[deleted]8

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Time of payment

FEES 9.2.2 R RP

PSR fee payers falling within the scope of FEES 4.3.6R(1C) – (1E)7 must pay to the FCA:6

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  1. (1)

    an amount equal to 50% of the PSR fee payable for the previous fee year, by 1 April in the current6fee year or, if later, within 30 days of the date of the invoice6; and

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  2. (2)

    the balance of the PSR fee due by 16 September4 in the current fee year or, if later, within 30 days of the date of the invoice.

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FEES 9.2.2A R

[deleted]6

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FEES 9.2.2B R RP

[deleted]8

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FEES 9.2.3 R RP

If FEES 9.2.2R does not apply7, the PSR fee payer8 must pay its PSR fee in full to the FCA6:

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  1. (1)

    by 16 August8 in the current fee year; or

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  2. (2)

    if later, within 30 days of the date of the invoice2.

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FEES 9.2.3A R

[deleted]6

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FEES 9.2.3B R RP

[deleted]8

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2Method of payment

FEES 9.2.4 G RP

A PSR fee payer8 should pay its fees to the FCA6 by direct debit,6 electronic credit transfer, cheque, Maestro, Visa Debit or by credit card (Visa/MasterCard only)6.

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FEES 9.2.4A R RP

[deleted]8

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FEES 9.2.4B R

[deleted]6

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FEES 9.2.4C R

[deleted]6

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Provision of information

FEES 9.2.4D R RP
  1. (1)

    2The operator of a regulated payment system or IFR card payment system4 must provide to the FCA and6PSR, for each of its direct payment service providers (and for itself, where it is an operator acting as an acquirer or card issuer)4:8

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    1. (a)

      a copy of the data setting out the transaction volumes and transaction values required by the FCA to calculate the PSR fees as set out in FEES 9 Annex 1R; and8

    2. (b)

      the following information (which is either in the operator’s possession or to which it has reasonable access) to enable and/or assist the FCA to issue invoices to PSR fee payers and/or collect PSR fees:8

      1. (i)

        telephone and/or e-mail contact information (including named point of contact);8

      2. (ii)

        billing address;8

      3. (iii)

        FCA firm reference number (where applicable);8

      4. (iv)

        company name, registered address and company number; and8

      5. (v)

        any other information which in the opinion of the operator would assist the FCA in issuing invoices to the relevant PSR fee payers within the operator’sregulated payment system or IFR card payment system.8

  2. (2)

    The operator of a regulated payment system or IFR card payment system4 must:3

    1. (a)

      provide the information in (1) to the PSR and FCA6 as soon as practicable, but no later than 1 March each year6; and

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    2. (b)

      provide such other data to the FCA and PSR on request to enable6 the individual PSR fees to be verified6.

      3
  3. (3)

    [deleted]6

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FEES 9.2.4E G

[deleted]6

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FEES 9.2.4F G RP

[deleted]6

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FEES 9.2.4G G

8The FCA will use the data provided by the relevant operators in FEES 9.2.4DR to calculate the PSR fees. Before being submitted to the FCA, if requested by a PSR fee payer, the operator should confirm with the relevant PSR fee payer the accuracy of the data it proposes to submit. In the event of a dispute raised by a PSR fee payer over the accuracy of the data provided to the FCA, the FCA will continue to use the data as originally provided. Any later dispute should be directed to the relevant operator of the regulated payment system or IFR card payment system responsible for the provision of the data to the FCA.

2Ceasing to be designated as a regulated payment system, ceasing to be a direct payment system provider of a regulated payment system or IFR card payment system, and ceasing to be subject to the IFR

FEES 9.2.5 G RP

The FCA will not relieve or refund a PSR fee if after the start of that fee year:4

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  1. (1)

    4a payment system ceases to be a regulated payment system; or4

  2. (2)

    4an IFR card payment system ceases to be subject to the IFR;4 or

  3. (3)

    4a person4 ceases to be a direct payment service provider of a regulated payment system or an IFR card payment system4.

FEES 9.2.6 R RP

If a payment system ceases to be a regulated payment system, or an IFR card payment system ceases to be subject to the IFR4, all direct payment service providers of that system, and the operator of that IFR card payment system,4 must pay any outstanding PSR fees before the system ceases to hold that status.

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FEES 9.2.6A R RP

If a person4 ceases to be:4

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  1. (1)

    4a direct payment service provider of a regulated payment system or of an IFR card payment system4, it must pay any outstanding PSR fees in respect of that system, before it ceases to be a direct payment system provider of the system; or4

  2. (2)

    4the operator of a IFR card payment system, it must pay any outstanding PSR fees in respect of that system before it ceases to be the operator of that IFR card payment system4.

Late payments

FEES 9.2.7 R RP

If a PSR fee payer8 does not pay the total amount of its PSR fees before the end of the date on which it is due, it must pay to the FCA2:

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  1. (1)

    an administrative fee of £250; plus

  2. (2)

    interest on any unpaid part of the fee at an annual rate of 5% above the Official Bank Rate from time to time in force, accruing daily from the date on which the amount concerned became due.

FEES 9.2.7A G RP
  1. (1)

    2The FCA may recover a PSR fee as a debt owed to it under paragraph 23 (8) of Schedule 1ZA of the Act.

  2. (2)

    The FCA will consider taking action for the recovery (including interest) through the civil courts.

  3. (3)

    In addition, the FCA or PSR may be entitled to take regulatory action in relation to the non-payment of PSR fees. What action, if any, that is taken by the FCA or PSR will be decided upon given the particular circumstances of the case.8

Reduction, remission and repayment of fees

FEES 9.2.8 G RP

The FCA may reduce or remit all or part of a PSR fee, if it appears to the FCA, having consulted the PSR, that in the exceptional circumstances of a particular case paying all or part of it would be inequitable.

FEES 9.2.9 G RP

The FCA may refund all or part of a PSR fee if it appears to the FCA, having consulted the PSR, that in the exceptional circumstances of a particular case the FCA or the PSR retaining all or part of it would be inequitable.

FEES 9.2.10 G RP

The FCA will not consider a claim to refund a PSR fee due to a mistake of fact or law by the PSR fee payer8 if the claim is made more than two years after the beginning of the fee year to which the fee relates.

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VAT

FEES 9.2.11 R RP

PSR fees payable are stated net of VAT. Where VAT is applicable this must also be included.

FEES 9 Annex 1 PSR fees methodology783636

R

The table below shows the methodology used by the FCA to determine the PSR fee applicable to PSR fee payers for each fee year.8

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8 Regulated payment system or IFR card payment system

(column 1)

Relevant transactions

(column 2)

Relevant time period

(column 3)

Volume block (“Vo”)

(column 4)

Value block (“Va”)

(column 5)

Calculation methodology for PSR fee payable

(column 6)

Bacs

All transactions processed through the BACSregulated payment system. Transactions include both the initiation of the transfer of the funds, and the receipt of transferred funds.

The full calendar year (1 January to 31 December) before the start of the relevant fee year.

For example this would be 1 January to 31 December 2017 for the 2018/2019 fee year.7

7 FEES 9 Annex 1

7

7 FEES 9 Annex 1

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Fees allocated to a PSR fee payer

=

its fees under the volume block (Vo) + its fees under the value block (Va)

C&C

All transactions 7processed through the C&C regulated payment system. This includes ‘in clearing’ and ‘out clearing’ transactions in paper clearing, and the payment and the receipt of the transfers of funds in image clearing.7

CHAPS

All MT103 and MT202 transactions processed through the CHAPSregulated payment system. Transactions include both the initiation of the transfer of the funds, and the receipt of transferred funds.

FPS

All transactions processed through the FPSregulated payment system. Transactions include both the initiation of the transfer of funds, and the receipt of transferred funds.

LINK

All transactions issued and acquired under the LINKregulated payment system, including GBP cash withdrawals, foreign currency dispenses, balance enquiries, PIN management, charity donations, non-cash transactions and mobile payment transactions but excluding ‘on us’ transactions. Both issuing and acquiring transactions are taken into account.

Mastercard

All transactions by acquirers operating in the United Kingdom and transactions by card issuers operating in the United Kingdom under the Mastercardregulated payment system, including point of sale transactions, merchant sales volumes, and cash purchase transactions on cards, but excluding cash-only withdrawals. All Mastercard branded transactions are included irrespective of the processing entity (Mastercard itself, a third party processing entity or ‘on us’ transactions). Both issuing and acquiring transactions are taken into account.

NICC

All transactions including ‘in clearing’ and ‘out clearing’ transactions for GBP, USD and EUR processed through the NICCregulated payment system.

Visa

All transactions by acquirers operating in the United Kingdom and transactions by card issuers operating in the United Kingdom under the Visaregulated payment system, including point of sale transactions, merchant sales volumes, and cash purchase transactions on cards, but excluding cash-only withdrawals. All Visa branded transactions are included irrespective of the processing entity (Visa itself, a third party processing entity or ‘on us’ transactions). Both issuing and acquiring transactions are taken into account.

AmEx

All IFR transactions by acquirers operating in the United Kingdom and IFR transactions by card issuers operating in the United Kingdom (or by the operator of that IFR card payment system acting as such an acquirer or card issuer) under that IFR card payment system, including point of sale transactions, merchant sales volumes, and cash purchase transactions on cards, but excluding cash-only withdrawals. All transactions under the brand of that IFR card payment system are included irrespective of the processing entity (the operator or the IFR card payment system itself, a third party processing entity or ‘on us’ transactions). Both issuing and acquiring transactions are taken into account for each IFRcard payment system.

Diners Club

JCB

UPI

Notes:

*7 The PSR will publish this figure annually. The figure represents the sum of all PSR fee payers’ relevant transaction volumes across all systems in the relevant time period.

**7 The PSR will publish this figure annually. This figure represents the sum of all PSR fee payers’ relevant transaction values across all systems in the relevant time period.

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