What the Payment Services Regulations 2017 cover
- Eight payment services, from operating payment accounts and executing transfers to card issuing, acquiring, money remittance, payment initiation and account information (Schedule 1).
- Authorisation of payment institutions by the Financial Conduct Authority, or registration as a small payment institution.
- Safeguarding of customers' funds (regulation 23).
- Information to give customers before and after a payment (Part 6).
- Rights and obligations: consent, execution, refunds and liability (Part 7).
- Strong customer authentication (regulation 100).
A person may not provide a payment service in the UK without being one of the listed kinds of payment service provider (regulation 138).
Key figures in the Payment Services Regulations 2017
- Initial capital of an authorised payment institution: EUR 20,000 for money remittance, EUR 50,000 for payment initiation and EUR 125,000 for the other services, set in euro (Schedule 3).
- Small payment institution: payment transactions of no more than EUR 3 million a month on average, agents included (regulation 14).
- Unauthorised payment: refunded by the end of the business day after the provider becomes aware of it (regulation 76).
- Lost or stolen payment instrument: the payer may be made liable for up to £35 (regulation 77).
When the regulations took effect, and what comes next
Most of the regulations came into force on 13 January 2018, and the provisions on strong customer authentication on 14 September 2019. They remained UK law after the UK left the EU, so UK and EU payment law now change separately.
The Financial Services and Markets Act 2023 lists the regulations for revocation. On 13 October 2026, legislation.gov.uk showed that revocation as commenced for regulation 158 only.
PSRs 2017, PSD2 or the Payment Systems Regulator?
- PSD2
- The EU directive the regulations implemented. Some figures differ: the payer's liability for a lost or stolen instrument is capped at EUR 50 in PSD2 and at £35 in the UK.
- Electronic Money Regulations 2011
- The UK's law on issuing e-money. An e-money institution follows both sets of regulations when it provides payment services.
- Payment Systems Regulator
- A UK regulator, also shortened to PSR, with functions under Part 10 of the regulations. It is a body, not a law.
Where the Payment Services Regulations 2017 shows up in a platform
Modules that do the work
- Accounts & IBANsCustomer accounts with their own IBANs, on the partner bank and the rails you choose.
- PayoutsMoney out to bank accounts, cards and wallets, on the rail that fits each payment.
- AuthenticationSign-in, passkeys and second factors for customers and staff, on your identity provider or ours.
- Compliance reportingTransaction monitoring, the Travel Rule and regulatory reports, ready for your regulator.
Platforms that need it
Guides that go deeper
Where it is written
The laws and standards this page's facts come from.
- Payment Services Regulations 2017 (legislation.gov.uk)
- Directive (EU) 2015/2366, PSD2, consolidated (EUR-Lex)
General information, not legal advice: what applies to you depends on your services and your market.