FEES 9.1 Application and purpose

Application

FEES 9.1.1 R 27/10/2015

1This chapter applies

to operators 2 of regulated payment systems and direct payment service providers 2.

Purpose

FEES 9.1.2 G 27/10/2015

This chapter sets out the fee payable by a direct payment service provider 2 to establish and fund the PSR.

Introduction

FEES 9.1.3 G 01/04/2015

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

FEES 9.1.4 G 27/10/2015

(1)
Paragraph 9 of Schedule 4 of FSBRA allows the FCA to make rules requiring participants 2 in regulated payment systems 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)
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.
(3)
The amounts in (1) may include the expenses of the FCA in collecting PSR fees.

FEES 9.1.5 G 01/04/2015

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

FEES 9.1.6 G 01/04/2015

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)
expenses under FEES 9.1.4G (2)(b) to (d); and
(2)
collection costs, referred to in FEES 9.1.4G (3).

Annual budget and annual plan

FEES 9.1.7 G 01/04/2015

(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)
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 01/04/2015

(1)
PSR fees will vary from year to year, depending on the PSR's annual plan and budget.
(2)
These details are in FEES 9 Annex 1 R.
(3)
The FCA will prepare and consult on new details for each fee year.

FEES 9.2 PSR fees

Obligation to pay PSR fees

FEES 9.2.1 R 27/10/2015

A direct payment service provider, acquirer or card issuer 2 must pay the PSR fees applicable to it and calculated as set out2 in FEES 9 Annex 1 R:

(1)
in full and without deduction; and
(2)
in accordance with this chapter, subject to FEES 9.2.1AR2.

FEES 9.2.1A R 27/10/2015

2If either of the following tests is met by an acquirer or card issuer in any given fee year, the transaction volumes attributable to that acquirer or card issuer are not be included in the payment system denominator for that card payment system for that fee year, and that acquirer or card issuer is not required to pay any PSR fee for that fee year where:

(1)
the PSR fee for that acquirer or card issuer calculated as set out in FEES 9 Annex 1 R would be less than £50 for the current fee year if FEES 9.2.1AR were not applied; or
(2)
for an acquirer, less than 100,000 transactions by an acquirer operating in the United Kingdom were realised in the relevant time period; or
(3)
for a card issuer, less than 100,000 transactions by a card issuer operating in the United Kingdom were realised in the relevant time period.

Time of payment

FEES 9.2.2 R 27/10/2015

If the PSR fee paid by a direct payment service provider 2 for the previous fee year for a particular regulated payment system 2 was at least £20,0002, that direct payment service provider 2 must pay:

(1)
an amount equal to 50% of the PSR fee payable for the previous fee year, by 152 April in the current fee year; and
(2)
the balance of the PSR fee due by 15 August2 in the current fee year.

FEES 9.2.2A R 27/10/2015

2The operator of each regulated payment system must pay the amounts collected (as collection agent for the FCA) under FEES 9.2.2R to the FCA by the following dates:

(1)
30 April in the current fee year;
(2)
1 September in the current fee year.

FEES 9.2.3 R 27/10/2015

If the PSR fee paid by a direct payment service provider for a particular regulated payment system 2 for the previous fee year was less than £20,0002, the direct payment service provider 2 must pay its PSR fee in full:

(1)
by 152 August in the current fee year; or
(2)
if later, within 30 days of the date of the invoice2.

FEES 9.2.3A R 27/10/2015

2The operator of each regulated payment system must pay the amounts collected (as collection agent for the FCA) under FEES 9.2.3R to the FCA by the following date:

(1)
30 August in the current fee year; or
(2)
if later, within 15 days of the date payment of an amount in respect of PSR fees is received by the operator from a direct payment service provider.

[Note: Transitional provisions apply to FEES 9.2.2R to FEES 9.2.3AR inclusive: see FEES TP 12.]

Method of payment and invoicing2

FEES 9.2.4 G 27/10/2015

A direct payment service provider 2 should pay its fees by electronic credit transfer and should notify the operator to whom it is paying the relevant PSR fee 2 if it intends to pay in another way.

FEES 9.2.4A R 27/10/2015

2A direct payment service provider must pay its PSR fees to the operator (acting as collection agent for the FCA) of the regulated payment system to which the fee relates.

FEES 9.2.4B R 27/10/2015

2The operator of a regulated payment system, acting as collection agent for the FCA, must pay to the FCA the amounts it receives from or on behalf of direct payment service providers under FEES 9.2.4AR.

FEES 9.2.4C R 27/10/2015

2With respect to invoices for PSR fees:

(1)
the operator of each regulated payment system must issue invoices to its direct payment service providers for the amount of the PSR fee relating to each direct payment service provider for their participation in that regulated payment system;
(2)
invoices must be separate invoices which include only the amount of the PSR fee applicable to each direct payment service provider, and must include no other charges, fees, administrative or handling fees;
(3)
invoices must be issued by the operator on a sufficiently timely basis to enable the direct payment service providers to pay PSR fees to the operator (acting as collection agent for the FCA) by the dates specified in FEES 9.2.2R and 9.2.3R.

FEES 9.2.4D R 27/10/2015

(1)
2The operator of a regulated payment system must provide to the PSR, for each of its direct payment service providers, a copy of:
1. (a)
  its calculations (as specified in column 3 of Table A of FEES 9 Annex 1R); and
2. (b)
  the underlying data (as specified in column 5 of Table A of FEES 9 Annex 1 R).
(2)
The operator of a regulated payment system
must provide the information in (1) no later than the date it issues invoices to direct payment service providers in accordance with FEES 9.2.4CR.

FEES 9.2.4E G 27/10/2015

2An operator of a regulated payment system should pay the amounts due to the FCA under FEES 9.2.4BR by electronic credit transfer and should notify the FCA if it intends to pay in another way.

Ceasing to be designated as a regulated payment system and ceasing to be a direct payment system provider of a regulated payment system2

FEES 9.2.5 G 27/10/2015

The FCA will not relieve or refund a PSR fee if a payment system ceases to be a regulated payment system, or if a person ceases to be a direct payment service provider of a regulated payment system,2 regulated payment system after the start of that fee year.

FEES 9.2.6 R 27/10/2015

If a payment system ceases to be a regulated payment system, all direct payment service providers 2 of that system must pay any outstanding PSR fees before the system2 ceases to hold that status

FEES 9.2.6A R 27/10/2015

2If a person ceases to be a direct payment service provider of a regulated payment system, 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.

Late payments

FEES 9.2.7 R 27/10/2015

If a direct payment service provider 2 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 FCA 2:

(1)
an administrative fee of £250; plus
(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 27/10/2015

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

Reduction, remission and repayment of fees

FEES 9.2.8 G 01/04/2015

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 01/04/2015

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 27/10/2015

The FCA will not consider a claim to refund a PSR fee due to a mistake of fact or law by the fee paying direct payment service provider 2 if the claim is made more than two years after the beginning of the fee year to which the fee relates.

VAT

FEES 9.2.11 R 01/04/2015

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

FEES 9 Annex 1 PSR fees for the period 1 April 2015 to 31 March 2016

R 27/10/2015

1The table below shows the PSR fee applicable to the direct payment system providers, acquirers and card issuers 2 of each regulated payment system.

Table A

2 Regulated payment system (column 1)	Payment system allocation for 2015/16 (£) (column 2)	Calculation methodology for PSR fee payable by direct payment service providers, acquirers and card issuers of regulated payment systems (column 3)	Relevant time period (column 4)	Relevant transaction volumes or shareholdings, as applicable (column 5)	Payment system denominator (column 6) (rounded to the nearest ‘000)
Bacs	4,014,300	The PSR fee is calculated for each individual direct payment service provider proportionally to the transaction volumes processed on behalf of that direct payment service provider through the regulated payment system in question during the relevant time period. The calculation formula is: payment system allocation multiplied by direct payment service provider’s transaction volumes divided by payment system denominator.	1 January to 31 December 2014	All transactions processed through the Bacs regulated payment system.	5,840,932,000
C&C	3,905,400		1 October 2014 to 31 March 2015	All transactions including ‘in clearing’ and ‘out clearing’ transactions for GBP, USD and EUR processed through the C&C regulated payment system.	471,660,000
CHAPS	4,014,300		1 January to 31 December 2014	All MT103 and MT202 transactions processed through the CHAPS regulated payment system.	36,454,000
FPS	4,014,300		1 June 2014 to 31 May 2015	All transactions processed through the FPS regulated payment system.	1,154,701,000
LINK	4,014,300		1 January to 31 December 2014	All transactions issued and acquired under the LINK regulated 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.	6,298,014,000
MasterCard	4,014,300	The PSR fee is calculated for each individual acquirer and card issuer proportionally to the relevant transaction volumes under the regulated card payment system in question during the relevant time period. The calculation formula is: payment system allocation multiplied by acquirer or card issuer’s relevant transaction volumes divided by payment system denominator. The PSR fee is calculated for each direct payment service provider proportionally to its shareholding in the operator of the NICC regulated payment system during the relevant time period. The calculation formula is: payment system allocation multiplied by direct payment service provider’s shareholding in the capital of the Belfast Bankers’ Clearing Company Ltd (expressed as a percentage).	1 January to 31 December 2014	All transactions by acquirers and card issuers operating in the United Kingdom under the MasterCard regulated 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).	4,612,855,000 (prior to any adjustment resulting from the application of FEES 9.2.1AR)
Visa	4,014,300		1 January to 31 December 2014	All transactions by acquirers and card issuers operating in the United Kingdom under the Visa regulated 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).	21,843,411,000 (prior to any adjustment resulting from the application of FEES 9.2.1AR
NICC	108,900		31 December 2014	All shareholdings held in Belfast Bankers’ Clearing Company Ltd, the operator of the NICC regulated payment system.	Not applicable

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