Payment Service Directive (PSD) 2012

The European Union (EU) Payment Services Directive (PSD) came into law on 1st November 2009 and is mandatory legislation passed by the European parliament which establishes a legal framework for electronic and card payments across the European Economic Area (EEA*). It has already introduced a number of benefits and protection for customers. It ensures that all banks within the EEA provide the same minimum level of service and information about payments.

With effect from 1st January 2012, the Directive will introduce further benefits for bank customers, when it requires banks to reduce the maximum execution cycle for payments to one business day for many of their payment services. In addition, the legislation requires banks to extend the business operating day for payments.

* EEA = EU Member States and Norway, Iceland and Liechtenstein. See table 1.0 below for the full EEA country table.

*euro zone country

PSD Impacts for AIB Bank customers in the Republic of Ireland from 1st January 2012

The primary impact is a change in the maximum payment execution cycle to one day. This will impact the following payment types:

1. Payments in euro from one euro account to another euro account where both accounts are located within the EU/EEA.
For AIB Bank customers in the Republic of Ireland, this means that all national and cross border euro payments from accounts denominated in euro to countries within the EU/EEA must be executed (i.e. the funds delivered to the receiver's bank) by the close of business on the day after the payment was initiated.
Furthermore, AIB is enhancing its' payment service for all SEPA (Single Euro Payments Area) reachable payments* by extending the business operating day for Interbank transfers within the Republic of Ireland. These enhanced cut off times and new processing methods will ensure that value is given to the beneficiary bank on the next business day. Please note below the new cut off times that will be introduced on a phased basis commencing in October 2011.

• Payments made after 05:00 and before 15:30 on a business day will be credited to the beneficiary bank the next business day at circa 07:00

• Payments made after 05:00 and before 15:30 on a business day will be credited to the beneficiary bank the next business day at circa 07:00 Payments made after 15:30, and before midnight on a business day, will be credited to the beneficiary bank the next business day at circa 14:00

• Every effort will be made to ensure that payments made after midnight and before 03:00 will be credited to the beneficiary bank that same business day at circa 14:00, but no later than the next business day

The business operating day for the following payment types remains unchanged:

• Paylink Euro (Standard and Urgent) payments

• Same Day Value domestic euro payments

* Payments to non-SEPA reachable institutions located in Republic of Ireland will not be accepted after 15:30 on a business day as the beneficiary bank cannot accept the new European Payments Standard.

2. National payments in the currency of an EU/EEA member state e.g. Sterling (GBP) payments within the UK.
For AIB Bank customers in the Republic of Ireland, that maintain Sterling Current Accounts on NSC 23-85-90, there will be major changes to the payment services available on these accounts in order to ensure that the service complies with the legislation. Customers with accounts on NSC 23-85-90 will be advised in writing of these changes.

3. Cross border payments in euro involving a conversion between the euro and an EU/EEA member state currency are in scope but only where the conversion occurs in the EU/EEA member state of the respective currency.
There is no impact on AIB Bank customers in the Republic of Ireland.

Changes to Terms and Conditions for Current Accounts and Demand Deposit Accounts for Republic of Ireland customers

With effect from 19th September 2011, we will introduce a new process for dealing with standing order payments on your accounts. Clauses 5.9 to 5.11 of the AIB Terms and Conditions for Current Accounts and Demand Deposit Accounts will be amended accordingly.

Existing Clauses 5.9 and 5.11, which deal with Direct Debiting schemes, will be amalgamated and slightly amended for clarity. This does not affect the operation of your accounts. The text of the amended Terms and Conditions for Current Account and Demand Deposit Accounts is available below and will become effective from 19th September 2011:

• 5.9 In the case of a Standing Order, where the available cleared balance on your Account is insufficient or you exceed your authorised overdraft limit on the due date for the payment, we may attempt to make the payment on one or more subsequent Business Days but shall not be obliged to do so.
• 5.10 Direct Debits are subject to applicable scheme rules. Where direct debiting instructions are not provided to us in respect of a Direct Debit, we will, in accordance with applicable scheme rules, rely on the instructions received from the payee's bank in order to make a payment.
• 5.11 We may cancel a Direct Debit or Standing Order instruction if sufficient funds are not available when payment is requested or due.

The above changes do not in any way affect your entitlement to close your AIB Current Account and/or Demand Deposit Account at any time, without charge, subject to the payment of all sums owing at that time including interest, fees and charges accrued up to the date of closure. The continued operation of your AIB Current Account and/or Demand Deposit Account after the 16th September 2011 will be deemed to confirm your acceptance of these changes and no further action is required of you.

All times referred to above are GMT

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