Decree No. 18/2009 (VIII. 6.) MNB of the Governor of the National Bank of Hungary. on Payment Services Activities CHAPTER I GENERAL PROVISIONS.

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1 Decree No. 18/2009 (VIII. 6.) MNB of the Governor of the National Bank of Hungary on Payment Services Activities Pursuant to the authorization conferred under Paragraph a) of Subsection (2) of Section 60 of Act LVIII of 2001 on the Magyar Nemzeti Bank I hereby decree the following: CHAPTER I GENERAL PROVISIONS Scope Section 1 (1) This decree shall apply to: a) bodies engaged in the business of providing payment services as defined in Paragraph d) of Subsection (1) of Section 3 of Act CXII 1996 on Credit Institutions and Financial Enterprises (hereinafter referred to as CIFE ), subject to the exceptions set out in Subsections (2)-(4); b) persons making use of the payment services referred to in Paragraph a). (2) In addition to what is contained in Subsection (3), this Decree applies to the Magyar Nemzeti Bank (hereinafter referred to as MNB ) solely in respect of the payment services it provides outside the implementation of the monetary policy and apart from carrying the single Treasury account. (3) As regards the current account specified in Paragraph b) of Subsection (1) of Section 14 of Act CCVIII of 2011 on the Magyar Nemzeti Bank (hereinafter referred to as MNB Act ) carried by the MNB, this Decree shall apply to the MNB only in respect of the credit transfers executed according to the provisions pertaining to official transfer orders and remittance summons. (4) This Decree applies to the Treasury as regards the payment services provided under the sphere of the Treasury as defined by Act CXCV of 2011 on Public Finances, only to the credit transfers executed according to the provisions of this Act pertaining to official transfer orders, credit transfers on the basis of a remittance summons, collections based on a letter of authorization and deferred payment documentary collection orders. Section 2 (1) For the purposes of this Decree: 1. domestic credit transfer means the payment transactions where both the payer s payment service provider and the payee s payment service provider operate to provide payment services within the borders of the Republic of Hungary; 2. intra-eea payment transaction means the payment transactions where both the payer s payment service provider and the payee s payment service provider, or the sole payment service provider involved operate to provide payment services within the territory of the EEA, and where the payment services provided are denominated in euro or the currency of an EEA Member State outside the euro area; 3. authentication chart means a list the MNB publishes to payment service providers and operators of internal payment systems containing information on persons directly and indirectly involved in the national payment transfer system for the proper execution of payment orders within the internal payment transfer system;

2 4. IBAN (International Bank Account Number) means an international bank account number used to identify payment accounts in international transactions; 5. cut-off time means a reference point in time in a business day established by the payment service provider within which any payment order shall be deemed to have been received or executed; 6. paper-based payment order means a payment order given in writing, that was executed by a signature by means other than electronic; 7. current account number means a unique identifier specified according to Schedule No. 1 to this Decree to identify unambiguously the payment account; 8. authorized signatory means the account holder, the person entitled to act on his behalf pursuant to the relevant legislation, as well as other persons authorized by such persons to dispose of the account; 9. account holder means a party to an agreement with the account carrier payment service provider; 10. debit day means the day when the sum indicated on the payment order is deducted from the balance available on the payer s payment account carried by the payment service provider. 11. intermediary payment service provider shall mean a payment service provider that carries an account for another payment service provider with a view to executing payment transactions on behalf of its clients; (2) As regards the terminology used in this Decree: a) the definition of transfer of funds, direct debit, EEA Member State, unique identifier, value date, payment order, payment transaction, payment account, payer, consumer, payee, framework contract, low value cash-substitute payment instrument, micro-enterprise, business day, current account, payment services, payment service provider, queuing and payment service user is contained in Act LXXXV of 2009 on the Pursuit of the Business of Payment Services (hereinafter referred to as Payment Services Act ); b) the definition of payment system and money remittance is contained in Act LXXXVI of 2009 on the Amendment of Act CXII of 1996 on Credit Institutions and Financial Enterprises Relating to Payment Institutions and Payment Services. CHAPTER II IDENTIFICATION OF PAYMENT ACCOUNTS Section 3 (1) Payment service providers shall identify the payment accounts they carry by the unique account identification number assigned to each account, and the full or abbreviated name (corporate name) of the account holder (hereinafter referred to collectively as name ). (2) Payment service providers shall create the account identification numbers according to the rules set out in Schedule No. 1 to this Decree. (3) In domestic forint transactions the account identification number used to identify the payment accounts is comprised of a string of digits consisting of 16 (2x8) or 24 (3x8) numeric characters, created by the account carrier payment service provider according to the rules set out in Point 1 of Schedule No. 1. (4) The identification code referred to in Paragraph a) of Point 1 of Schedule No. 1, to be used by the payment service provider, is issued upon the payment service provider s request by the MNB. 2

3 (5) The international bank account number (IBAN) is a string of digits consisting of 28 alphanumeric characters, created by the account carrier payment service provider according to the rules set out in Point 2 of Schedule No. 1. CHAPTER III THE AUTHENTICATION CHART Section 4 (1) The MNB shall register the following particulars of payment service providers in the authentication chart: a) the master codes of branches and satellite locations (hereinafter referred to as branch ) as defined in Paragraph a) of Point 1 of Schedule No. 1; b) the branch s name; c) the branch s address; d) the length of the account identification numbers used by the branch; e) the data and information required for forwarding payment messages in internal payment systems. (2) Payment service providers shall notify the MNB of any changes in the particulars contained in the authentication chart according to Subsection (1) by the fourth business day of the month preceding the effective date of the change. CHAPTER IV GENERAL RULES RELATING TO THE EXECUTION OF PAYMENT TRANSACTIONS Receipt and Identification of Payment Orders Section 5 (1) Payment service providers shall specify the time of opening and closing during a business day, within which payment orders are accepted, including a reference to the cut-off time up until which the payment service provider is committed to perform its duties pertaining to payment orders received by that time, unless a later time is specified by the payment service user or unless otherwise provided for by an act or this Decree. Payment orders received past the cut-off time but before the end of a business day, and payment orders received on non-business days shall be deemed to have been received and shall be executed by the payment service provider on the following business day, unless a later time is specified by the payment service user or unless otherwise provided for by this Decree. (2) In addition to the information contained in the payment order, the payment service provider is required to register and store at the time of receipt of the orders the point in time (day, month, year, hour, minute) of receipt of the orders. (3) Payment service providers shall accept payment orders in the sequence they are received. Payment orders shall be accepted without delay on business days between the opening and the cutoff time. Payment service providers shall accept payment orders deposited on business days between 3

4 the opening and the cut-off time into the collecting box installed for the submission of payment orders within sixty minutes from the time of submission. (4) Payment orders may be submitted in batches, if the connection between the payment orders can be clearly established. (5) Unless otherwise instructed by the account holder or otherwise prescribed by law, the payment service provider shall execute orders for debiting payment accounts in the order they are received. The order of receipt of payment orders shall be determined based on the records of the payment service provider. (6) Where a payment service provider is unable to carry out a payment order received by way of electronic means from another payment service provider due to any error in or lacking the data identifying the credit or debit transaction, or due to any other reason, the payment service provider shall: a) in connection with domestic forint transactions, refuse the payment order, b) in connection with other payment orders, notify the payment service provider sending the payment order by refusing the payment order or by other means, and shall communicate the grounds for refusal on the business day following the day of receipt at the latest. Setting the Cut-Off Time Section 5/A. Payment service providers may set different times for receiving payment orders and for crediting the funds transferred, as the cut-off time, moreover, such cut-off time may be set differently in accordance with the criteria defined in the framework contract, such as the means of payment, type of currency and the conversion of currencies. Receipt of Payment Orders Section 6 Refusal of a Payment Order Notified to the Payment Service User Section 7 (1) In the event where a payment order fails to comply with the requirements laid down in regulations, the payment service provider - with the exception set out in Subsection (2) - shall refuse to execute the payment order. (2) Where a payment order fails to comply with the content requirements laid down in the provisions contained in Schedule No. 2 to this Decree on the completion of payment orders, the payment service provider may nevertheless execute such payment order for his own client, if the payment service provider is able to ascertain compliance with the regulations relating to the drawing up (contents) of payment orders without having to refuse payment order. (3) Unless otherwise provided by law or unless otherwise agreed with the account holder, the payment service provider shall refuse the payment order that cannot be executed due to a lack of sufficient funds on the payment account. (4) Where a payment order has been queued under statutory provision or by agreement with the account holder, the payment service provider shall refuse the payment order in question if queuing did not bring the results desired. 4

5 (5) The payment service provider shall refuse any payment order filled out and submitted not in compliance with the conditions set out in the framework contract or in the agreement concluded with the payment service user. (6) Where the payment service provider refuses to execute a payment order, the refusal and, if possible, the reasons for it and the procedure for correcting any factual mistakes that led to the refusal shall be notified to the payment service user, unless otherwise provided for or prohibited by the relevant legislation. (7) Unless otherwise provided for in this Decree, the payment service provider shall provide or make available the notification referred to in Subsection (6): a) immediately, but not later than the business day following the time of receipt of the payment order as specified in Subsection (1) of Section 5; b) at the latest on the business day following the debit day, where one has been indicated; c) at the latest following the last day of queuing in the case of expiry of queuing; to the payment service user by way of the means fixed in the framework contract. If the payment service provider refuses a payment order, submitted on paper and bearing a counter-signature, on the strength of law or under agreement, or a payment order submitted with any supporting documents, the payment order and the said documents shall be returned to the payment service user. (8) Where the execution of a direct debit is refused, the payer s payment service provider shall comply with the requirements set out in Subsections (6) and (7) through the payment service provider carrying the payee s payment account the same way as the direct debit request was submitted. (9) Where the execution of a transaction is refused, charges may be imposed as agreed in the framework contract, where those charges shall be appropriate and in line with actual costs, and if refusal is objectively justified according to Subsection (6). (10) In cases where all the conditions set out in the framework contract between the payer and the payment service provider are met, the payer s payment service provider shall not refuse to execute an authorized payment order irrespective of whether the payment order is initiated by a payer or by or through a payee, unless otherwise provided for by the relevant legislation. (11) A payment order of which execution has been refused shall be deemed not to have been received. Queuing and Partial Payment of Payment Orders Section 8 (1) In connection with any transfer of funds and direct debit that cannot be executed due to the lack of sufficient funds, and which the payment service provider did not refuse pursuant to the provisions of law or under an agreement with the account holder, the payment service provider shall queue them for a maximum period of thirty-five days, unless otherwise provided for by an act or this Decree. The period of queuing shall commence on the day following the day when the payment order is received. (2) An automatic debit transfer that cannot be executed due to the lack of sufficient funds may - by agreement with the account holder - queued for a maximum period of four business days reckoned from the debit day. (3) The payment service provider carrying the payer s account shall forthwith notify the payee concerning the queuing of any direct debit - exclusive of automatic debit transfers - that cannot be executed due to the lack of sufficient funds on the payment account through the payment service 5

6 provider carrying the payee s payment account. The notification shall contain the particulars of the original direct debit and the last day of queuing. (4) Where a payment order cannot be executed in full owing to insufficient funds, the payment service provider shall provide partial payment up to the funds available if permitted by law or if so agreed with the account holder, save where Subsection (5) applies. (5) No partial payment is allowed in connection with transfer orders submitted in batches, nor with automatic debit transfers. Specific Provisions Relating to Official Transfer Orders and Remittance Summons Section 9 (1)-(2) (3) Where the execution of an official transfer order initiated by the payee through his payment service provider is refused, the payer s payment service provider shall proceed in accordance with Subsection (8) of Section 7. (4) Where execution of a remittance summons, or an official transfer order submitted by the payee directly to the payment service provider carrying the payer s account is refused, the payer s payment service provider shall notify the party initiating the remittance summons, or the payee directly in accordance with Subsection (6) of Section 7 and - by way of derogation from Subsection (7) of this Section - with Subsection (7) of Section 7. (5) The payment service provider carrying the payer s account shall notify - at the latest on the first business day of queuing - the payee and the party initiating the remittance summons concerning the queuing of any official transfer order and remittance summons that cannot be executed due to the lack of sufficient funds on the payment account. The notification shall contain the particulars of the original payment order and the last day of queuing. (6) Concerning the queuing of an official transfer order initiated by the payee through his own payment service provider, the notification referred to in Subsection (5) shall be sent by the payer s payment service provider through the payee s payment service provider. (7) The payer s payment service provider shall send the notifications the same way as the official transfer order and the remittance summons was submitted. Time Limit for the Execution of Payment Orders Section 10 (1) In connection with intra-eea payment transactions the payment service provider shall carry out his end for the execution of the payment order according to the time limits specified in Chapter V. (2) The payer s payment service provider shall carry out his end for the execution of any transfer order: a) in any currency to a non-eea Member State, or b) in the currency of a non-eea Member State to Hungary or another EEA Member State, on the business day following the point in time of receipt of the transfer order, unless there is an agreement to the contrary. (3) The payee s payment service provider shall make available the funds transferred in the currency of a non-eea Member State to the payee on or before the business day following the day when the funds transferred are placed at the payment service provider s disposal. 6

7 (4) If conversion is required between the currencies during the execution of a payment order, where either of the currencies involved is that of a non-eea Member State, the time limit for execution may be extended by two business days. Time of Execution of Payment Orders Section 11 (1) Unless otherwise provided for by law or this Decree, or unless otherwise agreed by the parties, a payment order shall be deemed executed on the day when the funds are credited to the payee s payment account. (2) Withdrawal from a payment account and money remittance shall be considered executed when the money is given to the payee or if the payment service provider makes available the funds to the intended recipient. Guarantee Certificates Section 12 (1) The guarantee certificate shall be issued by the account carrier payment service provider at the account holder s request. The certificate shall, in particular, specify the amount tied up as cover and removed from the free disposition of the account holder, the purpose of tying it up, the name of the beneficiary and the duration for which the funds are tied up, including the means of appropriation. (2) The payment service provider shall keep the amount indicated on the certificate in a discretionary account. (3) In connection with a guarantee certificate the parties shall also agree in the means of payment. Standard Forms for Financial Transactions Section 13 (1) The payment service user shall submit the payment order in accordance with the framework contract concluded with the payment service provider. (2) Within the framework of payment services, the payment service provider shall not refuse to receive a paper-based payment order on the grounds that the payment service user: a) has submitted the transfer order, official transfer order, direct debit request and deferred payment documentary collection order denominated in forint on PFNY 11, PFNY 71, PFNY 41 and PFNY 51 financial transaction forms shown in Schedule No. 3 to this Decree; b) has submitted the direct debit request denominated in a foreign currency on form PFNY 41 financial transaction form. (3) The technical specifications and visual image of the financial transaction forms listed in Subsection (2) are contained in Models 1-3 and 5-7 of Schedule No. 3 to this Decree. (4) Financial transaction forms other than those illustrated under Models 1-3 and 7 of Schedule No. 3 and payment orders transmitted by way of electronic means may be used if they inter alia contain the data required for the PFNY 11, PFNY 71, PFNY 41 and PFNY 51 financial transaction forms and the fields in the same length given therein. (5) Financial transaction forms other than those illustrated under Models 5 and 6 of Schedule No. 3 may be used if they inter alia contain the data, featured in Points 1-6 of the PFNY 31 and PFNY 7

8 31/A financial transaction forms, including the guidelines for completion. The guidelines for completion is not required for the PFNY 31 financial transaction form if the payment service provider that participated in filling out the financial transaction form, or failing this the one that received the financial transaction form from the payer, or the payee, informed the payer as to the contents of the guidelines in a verifiable manner. (6) Payment service providers shall be able to design their own financial transaction forms for payment orders, including the formula to be used if the payment order is submitted electronically, subject to the restrictions set out in this Decree. (6a) Payment service providers and clients using automatic debit transfer forms shall be able to design their own financial transaction forms for the execution, modification and termination of automatic debit transfers, and payment service providers shall be able to design the certificate concerning the standing authorization relating to any automatic debit transfer, subject to the restrictions set out in Subsection (5). (7) The rules for filling out payment orders and financial transaction forms described in Schedule No. 3 are contained in Schedule No. 2. CHAPTER V SPECIAL PROVISIONS RELATING TO THE EXECUTION OF INTRA-EEA PAYMENT TRANSACTIONS Time of Receipt of Payment Orders Section 14 (1) For the purposes of calculation of the execution times specified in Subsection (1) of Section 17 and Section 18 - subject to the exceptions set out in Subsections (2)-(3a) -, the point in time of receipt of a payment order is the time when the payment order transmitted directly by the payer or indirectly by or through a payee is received by the payer s payment service provider. If the point in time of receipt is not on a business day for the payer s payment service provider, the payment order shall be deemed to have been received on the following business day. (2) Where a payment order is queued by the payer s payment service provider by virtue of law or under agreement with the account holder, for the purposes of calculation of the execution times specified in Subsection (1) of Section 17 and Section 18, the point in time of receipt of a payment order shall - in consideration of what is contained in Subsection (4) - mean the time when the funds necessary for execution (partial payment) are available on the payer s payment account. (3) For the purposes of calculation of the execution times specified in Subsection (1) of Section 17, the point in time of receipt of a remittance summons shall - in consideration of what is contained in Subsection (4) - mean the time when the transfer obligation of the payer s payment service provider takes effect in accordance with the remittance summons. This provisions also applies to payments made and sums withheld on the basis of remittance summons. (3a) For the purposes of calculation of the execution times specified in Subsections (2) and (3) of Sections 17, the point in time of receipt of a payment order shall - in consideration of what is contained in Subsection (4) - mean the time when the payer s payment service provider received the payment order and the funds necessary for execution (partial payment) are available on the payer s payment account. If the payment order is submitted with the debit day indicated, the point in time of receipt of a payment order is the time when the funds necessary for execution (partial payment) of the payment order are available on debit day on the payer s payment account. 8

9 (4) The payer s payment service provider may establish a cut-off time preceding the end of a business day by not more than two hours, beyond which any payment order received shall be deemed to have been received on the following business day. (5) If the payment service user initiating a payment order and his payment service provider agree that execution of the payment order shall start: a) on a specific day; b) at the end of a certain period; c) on the day on which the payer has set funds required for execution of the transaction at his payment service provider s disposal; the point in time of receipt for the purposes of Subsection (1) is deemed to be the agreed day. If the agreed day is not a business day for the payer s payment service provider, the payment order received shall be deemed to have been received on the following business day. Protection of the Amounts Transferred Section 15 (1) The payment service provider of the payer shall ensure to transfer the full amount of the payment transaction to the payment service provider of the payee, or to the intermediary payment service provider used by the payment service provider of the payee and refrain from deducting any commissions, fees and other payment obligations from the amount transferred. The payment service provider of the payee shall, subject to the exception set out in Subsection (2), ensure to make available the full amount of the payment transaction it or its intermediary payment service provider has received, to the payee, and refrain from deducting any commissions, fees and other payment obligations from the amount transferred. (2) By way of derogation from Subsection (1) above, the payee and his payment service provider may agree that the payment service provider deduct its own commissions, fees and costs from the amount transferred before crediting it to the payee. In such a case, the full amount of the payment transaction and the commissions, fees and costs deducted from this amount shall be separated in the information given to the payee. (3) If any charges other than the commissions, fees and costs referred to in Subsection (2) are deducted from the amount transferred, the payment service provider of the payer shall ensure that the payee receives the full amount of the payment transaction initiated by the payer. In cases where the payment transaction is initiated by or through the payee, his payment service provider shall ensure that the full amount of the payment transaction is received by the payee. Execution Time Scope of Application of the Provisions on Execution Time Section 16 (1) The provisions contained in Sections 17 and 23 shall apply to: a) internal payment transactions in forint that does not involve any currency conversion; b) payment transactions in euro that does not involve any currency conversion; c) internal payment transactions involving only one currency conversion between the euro and the forint; 9

10 d) intra-eea payment transactions involving only one currency conversion between the euro and the forint, provided that the conversion is carried out in Hungary and the intra-eea transfer takes place in euro; with no exceptions permitted. (2) The provisions contained in Section 22 shall apply to: a) internal payment transactions in forint; b) payment transactions in euro; with no exceptions permitted. (3) Within the framework of Section 18, the payment service user and his payment service provider may agree in the conditions for intra-eea payment transactions other than what is contained in Subsections (1) and (2) by way of derogation from Sections 17 and (4) The provisions contained in Subsection (1) of Section 20, apart from intra-eea payment transactions, shall also apply to payment transactions in euro and the currency of an EEA Member State outside the euro area, where the payee s payment service provider is engaged in providing payment services outside the EEA. (5) The provisions contained in Subsection (2) of Section 20 and in Section 21, apart from intra- EEA payment transactions, shall also apply to payment transactions in euro and the currency of an EEA Member State outside the euro area, where the payer s payment service provider is engaged in providing payment services outside the EEA. Execution of Payment Transactions to a Payment Account Among Payment Service Providers Section 17 (1) The payer s payment service provider shall ensure that, after the point in time of receipt in accordance with Section 14, the amount of the payment transaction is credited to the payee s payment service provider s account at the latest by the end of the next business day. These periods may be extended by a further business day for paper-based payment transactions. (2) Where, in the case of a payment transaction under Paragraph a) of Subsection (1) of Section 16, the payer s payment service provider shall - by way of derogation from Subsection (1) - ensure that the amount of the payment transaction is credited to the payee s payment service provider s account at the latest within four hours after the point in time of receipt in accordance with Subsection (3a) of Section 14, if: a) the payment order is for the execution of a transfer under Subparagraph aa) of Paragraph a) of Section 25, not including official transfer orders and remittance summons; b) the payer submitted the payment order by means other than paper; and c) the payer s payment service provider is directly connected to the national payment system where the payment order is settled. (3) The execution time referred to in Subsection (2) shall be six hours, if the payer s payment service provider is indirectly connected to the national payment system where the payment order is settled. Section 18 In connection with the payment transactions under Subsection (3) of Section 16, the payer and his payment service provider may agree that the amount of the transaction is credited to the payee s 10

11 payment service provider s account at the latest by the end of the fourth business day following the time of receipt of the payment order. Section 19 (1) The payee s payment service provider is required to transmit a payment order initiated by or through the payee to the payer s payment service provider within the time limits agreed between the payee and his payment service provider. (2) In the case of direct debit, the transaction shall be executed within the time limits agreed between the payee and his payment service provider according to Subsection (1) above, enabling the payee s payment service provider to debit the payer s payment account for settlement at the agreed due date. Value Date Section 20 (1) The payer s payment service provider may not use a debit value date for the payer s payment account that is earlier than the point in time at which the amount of the payment transaction is debited to that payment account. (2) The payee s payment service provider may not use a credit value date for the payee s payment account that is later than the business day on which the amount of the payment transaction is credited to the payee s payment service provider s account. (3) If the payment transaction between the payer and the payee is carried out within the same payment service provider, the payment service provider is required to execute the debiting and the crediting transactions using the same value date. Availability of Funds Transferred to the Payee Section 21 (1) The payment service provider of the payee is required to value date the amount of the payment transaction and shall ensure that the amount of the payment transaction is at the payee s disposal immediately after that amount is credited to the payee s payment service provider s account. (1a) As regards the payment transaction referred to in Paragraph a) of Subsection (1) of Section 16, the payment service provider of the payee shall establish the cut-off time so as to ensure that the requirement set out in Subsection (1) is satisfied on the business day when the amount of the payment transaction is credited to the payment service provider s account. (1b) As regards the payment transaction referred to in Paragraph b) of Subsection (1) of Section 16, the payment service provider of the payee may not set the cut-off time before 18:00 hours. The payment service provider of the payee may establish a reference time by not more than one hour before the cut-off time with respect to the time of receipt of notice of credit of the amount transferred to its own account, as a precondition for having the amount transferred credited to the payee s payment account. (2) If the point in time when the amount transferred is credited to the payee s payment service provider s account is not on a business day, the payment service provider shall make available the funds transferred to the payee at the latest on the next business day. 11

12 Section 21/A. The intermediary payment service provider shall credit the amount of the payment transaction: a) on the business day when the funds are credited to its account in the case of payment transactions under Paragraph a) of Subsection (1) of Section 16, b) on the business day when receiving notice on the funds credited to its account in the case of payment transactions under Paragraph b) of Subsection (1) of Section 16, to the payment account of the payee s payment service provider, and shall disclose the particulars of the payment transaction so as to allow the payee s payment service provider to meet its obligation delegated under Subsection (1) of Section 21 on the same business day. Section 21/B. If the payment transaction between the payer and the payee is carried out between accounts carried by the same payment service provider, the payment service provider: a) shall execute the debiting and the crediting transactions on the same business day in connection with automatic debit transfers and payment transactions where any currency conversion is involved; b) shall make available the amount of the payment transaction to the payee immediately after the payer s payment account is debited in the case of other payment transactions. Section 22 (1) Where any cash is placed with a payment service provider on the account holder s payment account, the payment service provider shall ensure that the amount is made available to the payment service user and value dated - subject to the exceptions set out in Subsections (2) and (3) - immediately after the point of time of the receipt of the funds if the cash is provided: a) in forint, b) in the currency of the account holder s payment account, if the account holder is a consumer or micro-enterprise. (2) If the account holder is not a consumer or micro-enterprise, and the cash is placed with the account carrier payment service provider in the currency - other than forint - of the payment account, the payment service provider shall carry out the functions referred to in Subsection (1) above at the latest on the next business day after the receipt of the funds. (3) Where making a cash deposit through an automated teller machine, the payment service provider shall credit the funds transferred to the payee s payment account on the business day when having the deposited amount checked within three business days from the date of deposit, value dated on the same business day when credited. Section 23 (1) Where the payee does not have a payment account with the payment service provider who receives the funds for the payee within the framework of his payment services, the payment service provider shall - subject to the exception set out in Subsection (2) - credit or make available by other means the funds transferred to the payee at the latest on the next business day. (2) In connection with the cash disbursement vouchers specified in Section 46 and in the case of money remittance under Paragraph b) of Subsection (1) of Section 47, the time limits may be extended by a further business day if delivery is carried out by the postal services. (3) 12

13 Low Value Cash-Substitute Payment Instruments Section 24 In the case of a framework contract pertaining to a low value cash-substitute payment instrument the parties may agree that: a) by way of derogation from Subsection (6) of Section 7, the payment service provider is not required to notify the payment service user of the refusal of a payment order, if the non-execution is apparent from the context for the payment service user; b) by way of derogation from Sections 17 and 23, other execution periods apply. CHAPTER VI DETAILED REGULATIONS ON MEANS OF PAYMENT Section 25 The following means of payment shall be recognized according to the Payment Services Act: a) means of payment between payment accounts, such as in particular: aa) credit transfer, ab) direct debit, ac) payment initiated by the payer through the payee, ad) documentary credit (letter of credit); b) means of cash payment to or from a payment account, such as in particular: ba) transactions with cashier s checks (issue and acceptance), bb) cash placed on a payment account, bc) cash withdrawn from a payment account; c) means of payment in the absence of a payment account, such as in particular: ca) money remittance. Section 26 The provisions laid down in this Chapter for means of payment between payment accounts shall apply if the payer s payment service provider executes the payment transaction where the funds are covered by a credit line rather than from the funds available on the payer s payment account. General Rules for the Transfer of Funds Section 27 (1) A payment order for the transfer of funds (transfer order) means any instruction by a payer to his payment service provider requesting the execution of a payment transaction for the transfer of a specific amount from his payment account to the payee s payment account. (2) The payer shall give the transfer order to the payment service provider carrying his payment account. (3) If so agreed with the payment service provider, the transfer order may be submitted with the debit day indicated. (4) If the debit day indicated is not a business day or if there is no such day in the given month, the following business day shall be deemed as the debit day. 13

14 Transfer of funds shall, in particular, mean: a) group transfer; b) periodic credit transfer; c) official transfer and remittance summons. Special Provisions Relating to the Transfer of Funds Section 28 Group Transfer Section 29 (1) Group transfer means any instruction by a payer under agreement with his payment service provider requesting the execution of payment transactions by giving - at the place and in the manner specified in the framework contract - transfer orders of the same title codes in batches for the transfer of specific amounts to different payees. (2) The payment service provider carrying the payment account of the payee shall notify the payment service provider carrying the payer s payment account of non-payment of the group transfer order (failure of crediting), indicating the reason as well. The payment service provider carrying the payment account of the payer shall transmit these notifications (non-executed transfer orders) to the payer in the manner agreed in the framework contract. Periodic Credit Transfer Section 30 (1) Periodic credit transfer means any instruction by a payer to his payment service provider requesting the execution of a payment transaction for the transfer of a specific amount on specific days (debit days) periodically. (2) The payment service provider shall continue to execute a periodic credit transfer order until it is withdrawn by the payer or until the last debit day indicated on the transfer order. Official Transfer Order and Remittance Summons Section 31 (1) As regards the money claims to be enforced by official transfer orders or remittance summons the provisions of this Section shall apply in addition to what is contained in Section 64 of the Payment Services Act. (2) In connection with an official transfer order initiated by the payee through his payment service provider, the payment service provider carrying the payee s payment account shall proceed after receipt of the official transfer order to verify that the account identification number does in fact belong to the payee indicated in the official transfer order as the account holder, and shall check the signature of the authorized signatory as registered with the payment service provider. (3) The payment service provider carrying the payee s payment account shall forward the information contained in the official transfer order - after the verification as per Subsection (2) - to the payment service provider carrying the payer s payment account. 14

15 (3a) The payer s payment service provider shall proceed immediately upon receipt of the official transfer order and remittance summons to verify the account identification number of the payer indicated in the payment order as the account holder. (4) The payment service provider carrying the payer s payment account is not allowed to notify the account holder - shown as the payer - of the official transfer order and remittance summons before executing it (whether in full or part), or queuing it as prescribed by law. (5) The payment service provider shall notify the payer in writing concerning the execution (partial payment), or queuing of the official transfer order and remittance summons at the time of execution or queuing, and shall simultaneously transmit the information contained in the payment order. If the beginning of queuing of the official transfer order and remittance summons falls on a day other than a business day, the payment service provider shall dispatch the above-specified notice on the next business day. General Rules Concerning Direct Debit Section 32 (1) A direct debit means any instruction by a payee to the payment service provider carrying his payment account for debiting a payer s payment account with a specific amount and credit this amount to his payment account. (2) The payee shall give the direct debit request to the payment service provider carrying his payment account. (3) The payment service provider carrying the payee s payment account shall check upon receipt of the direct debit request the payee s particulars (cross-referencing the payee indicated in the document enclosed with the direct debit request, where one is requested, or the payee indicated as the account holder and the account identification number, and the signature of the authorized signatory as registered with the payment service provider). (4) The payment service provider carrying the payee s payment account shall forward the information contained in the direct debit request - after the verification as per Subsection (3) - to the payment service provider carrying the payer s payment account. (5) The payee s payment service provider shall submit the direct debit request directly to the payment service provider carrying the payer s payment account. (6) Where a specific document is to be enclosed with the direct debit request, or if it has to be countersigned by virtue of law or under agreement, the payment service provider carrying the payee s payment account shall forward such direct debit request, together with the requested enclosures, or the payee if entitled to submit the request directly under Subsection (5), by certified mail with recorded delivery to the payment service provider carrying the payer s payment account. Direct debit shall, in particular, mean: a) collection based on a letter of authorization; b) bill collection; c) check clearing; d) automatic debit transfer; e) deferred payment documentary collection; Special Provisions Relating to Direct Debit Section 33 15

16 f) documentary collection. Collection Based on a Letter of Authorization Section 34 (1) In the power of attorney (letter of authorization) the payer (account holder) gives consent - in the manner notified to the payment service provider - to the payee to execute the direct debit payment transaction. The letter of authorization may also lay down conditions for submission if so agreed between the payer and his payment service provider. (2) The letter of authorization shall contain: a) the payer s name and the account identification number of his payment account to which the authorization pertains; b) name of the payee authorized to execute the collection based on a letter of authorization, and the account identification number of his payment account; c) the period of validity of the authorization; d) where enclosure of a specific document is required, description of this document. (3) The letter of authorization may, furthermore, contain: a) the upper limit of payment; b) the frequency of submission; c) the period of queuing in the event of lacking sufficient funds, the possibility of partial payment and the minimum amount thereof; d) procedure for withdrawal. (4) Unless otherwise provided for by the letter of authorization, the payment service provider shall receive and execute a collection order based on a letter of authorization until the payer withdraws the authorization in writing. (5) If the payer or his payer payment service provider terminates the framework contract, respectively, under Subsection (1) of Section 17 of the Payment Services Act or Subsection (4) of Section 17 of the Payment Services Act, the payer s payment service provider shall - by way of derogation from Subsection (4) - be liable to execute a collection order based on a letter of authorization at the latest up to the day of termination of the framework contract. (6) The payment service provider of the payer may exercise his right to terminate the framework contract before the expiry of the letter of authorization. (7) The payer s payment service provider shall notify the payee without undue delay concerning the termination of the framework contract according to Subsections (5)-(6), if the payee s written consent is required for the withdrawal of the authorization. (8) The text of the letter of authorization is contained in Model 4 of Schedule No. 3. Bill Collection Section 35 (1) Where a direct debit request is for the collection of a claim based on a bill of exchange, consent of the original drawee is embodied by the bill itself. (2) With a collection order based on a bill of exchange the original draft shall be enclosed. (3) A collection order for a claim arising from a bill of exchange can only be used against the guarantors and bill debtors (acceptors) if a letter of authorization (as shown in Model 4 of Schedule No. 3) has been executed. 16

17 (4) If the payee presents the bill of exchange when submitting a collection order and it cannot be executed or can only partially be executed due to lack of sufficient funds, the payment service provider marked on the bill of exchange as the place of payment shall require a statement in lieu of the act of protest in accordance with the regulations on bills of exchange, unless the issuer has prescribed a protest in the text of the bill of exchange or released the holder from requiring a protest. If the payment service provider holding the bill and the one carrying the payment account to be debited is one and the same, it shall not be entitled to require a statement in lieu of the act of protest. Check Clearing Section 36 (1) Where a direct debit request is for cashing a check, consent of the issuer of the check is embodied by the check itself. (2) With a check clearing order the original copy of the check shall be enclosed. Automatic Debit Transfer Section 37 (1) By authorization of the payers concerned, if agreed between the payee and payment service provider carrying his account, the payee shall submit direct debit requests of the same title codes for the transfer of sums from the payment accounts of a large number of payers on a specific debit day, grouped in batches. (2) The payment service provider carrying the payer s payment account shall notify the payee - through the payment service provider carrying the payee s account - upon receipt of authorization from the payer for the execution of automatic debit transfer, including any amendment to or the withdrawal thereof - within four business days of receipt. Where the transaction amount is limited, the payment service provider shall be authorized to notify the payee concerning such amount limit only upon the payer s prior consent. (3) The payee shall inform the person engaged under contract and the payment service provider carrying the payer s payment account of accepting the authorization. From the standpoint of the payment service provider carrying the payer s payment account, the authorization shall be deemed accepted by the payee in the event the payee initiates collection. (4) The payee shall inform the payment service provider carrying the payer s payment account of refusing the authorization within four business days of receipt of the notice referred to in Subsection (2) and the person engaged under contract with the payment service provider, if such person can be identified relying on the notice referred to in Subsection (2). (5) The payee shall transmit the authorization, including any amendment to or the withdrawal thereof, received from the payer within four business days of the date of receipt to the payment service provider carrying the payer s payment account. Where authorization is made out together with a contract proposal, the payee shall satisfy the obligation of notification without delay upon accepting the proposal or after making a counter proposal. The payment service provider carrying the payer s payment account shall proceed in accordance with Subsection (2) as regards the authorizations received. (6) The payment service provider carrying the payer s payment account shall, at the payer s request, make out a certificate concerning the authorization relating to any automatic debit transfer affecting the payer s payment account. The payer may submit the certificate to another payment service 17

18 provider as a new authorization, however, this shall not entail the withdrawal of the previous authorization in absence of the payer s instruction therefor. (7) Upon the payee accepting the new authorization, the previous authorization made out for the same purpose shall be considered withdrawn. (8) Unless otherwise agreed upon by the parties, the authorization shall be submitted on a PFNY 31 financial transaction form, and the certificate referred to in Subsection (5) shall be submitted on a PFNY 31/A financial transaction form. Section 37/A. (1) Requests for automatic debit transfers may be submitted according to the framework contract concluded between the payee and his account carrying payment service provider at least five business days before the debit day. The payee shall select a debit day so as to ensure - in accordance with Subsection (1) of Section 11 - that the transaction can be executed by the payment deadlines shown in the invoice or other similar document. If the debit day indicated is not a business day, the following business day shall be recognized as the debit day. (2) The payee shall submit the automatic debit transfer in the amount shown in the invoice underlying the transfer request, or on any other document made in the absence thereof. (3) The payee s payment service provider shall carry out his end for the execution of the automatic debit transfer according to Subsection (1) of Section 5, not later than on the business day following the day of receipt. (4) In connection with automatic debit transfers, the payee shall notify the persons engaged in a contractual relationship with the payee by way of the invoice or other document underlying the payment requested at the latest six business days before the debit day. Where direct debit is submitted for the same amount over some extended period of time, the payee shall satisfy the obligation of notification when such amount is altered, or failing this at least on a yearly basis. (5) The payment service provider shall have the option to notify the payer concerning the automatic debit transfer before it is executed. (6) The payer may instruct the payment service provider carrying his payment account by the end of the business day preceding the debit day to stop payment for an automatic debit transfer. Payment may be stopped for the full amount only. The payment service provider shall not be required to assess whether payment is stopped for legitimate and tenable reasons. The stop payment order shall not affect the authorization. (7) The payment service provider carrying the payer s payment account shall notify the payment service provider carrying the payee s payment account of the execution or non-execution of the automatic debit transfer, in the latter case giving the reasons as well. The payment service provider carrying the payee s payment account shall transmit these notifications and the particulars of executed transactions to the payee in the manner agreed in the framework contract. (8) The payer s payment service provider shall inform the payer of non-executed automatic debit transfers at the latest together with the subsequent information provided under the Payment Services Act. Deferred Payment Documentary Collection Section 38 (1) Deferred payment documentary collection order means the payee s instruction to the payment service provider carrying his payment account to have a specific amount collected and credit the said 18

19 amount to his payment account from a payer who has an account at the Treasury for the purpose of enforcing a contractual payment obligation. (2) On the deferred payment documentary collection order the payee shall set a deadline for the payer within which to file an objection against the payment collection (hereinafter referred to as objection deadline ). The last day of the time limit for objection shall be set past the tenth business day following the date upon which the payee submits the order to the payment service provider carrying his current account. (3) The Treasury shall notify the payer regarding the deferred payment documentary collection order prior to execution and shall execute the order in accordance with the payer s instructions. For the purposes of this provision, the payer s failure to exercise his right of objection within the objection deadline shall be construed as such instruction. (4) The payer may file an objection against the execution of the deferred payment documentary collection order, in part or in full, at the Treasury before the business day preceding the last day of the time limit for objection in the form and in the manner specified by the Treasury. (5) If the payer has failed to file an objection in connection with the execution of the deferred payment documentary collection order, it shall be construed as consent for the execution of the transaction. (6) If an objection is filed, the Treasury shall proceed in compliance with the objection, however, it shall not be required to assess the reasons or the legitimacy of the objection. Documentary Collection Section 39 The beneficiary of the underlying transaction shall submit to his payment service provider carrying his payment account the documentary collection order and the documents on which the claims are based, to be released to the payer (addressee) only upon payment, acceptance of a bill of exchange or upon the satisfaction of other conditions. Payment Transaction Initiated by the Payer Through the Payee Section 40 (1) Where any payment is transacted by way of bank card in Hungary, if the currency in which the receipt is denominated corresponds with the currency of the payment account to which the bank card is linked or the line of credit linked to the credit card, the amount charged to the payment account or the line of credit shall in all cases be the same as the amount indicated on the receipt. (2) The payer s payment service provider shall identify the payment transaction executed in Hungary by way of the country code disclosed by the payee s payment service provider, assigned to the payee in connection with the given payment transaction as specified in the payment order statement. Documentary Credit (Letter of Credit) Section 41 (1) Documentary credit means the payment service provider s (the opening payment service provider s) commitment - on the basis of the order submitted by the payer of the underlying 19

20 transaction - made in his own name for paying the amount specified in the documentary credit if the payee submits the required documents within the deadline specified, provided that they are acceptable and in compliance with other conditions set out in the letter of credit. (2) The payee shall forward the documents required for the documentary credit transaction to the opening payment service provider directly or through his account carrier payment service provider, together with a proof of claim form. (3) The opening payment service provider shall pay the amount of the documentary credit transaction to the payee by transferring it to the payment account indicated in the documentary credit or in the proof of claim form. Issue and Acceptance of Cashier s Checks Section 42 (1) The account holder may issue a cashier s check if he has concluded a check contract with his account carrier payment service provider. (2) Unless otherwise agreed, the payment service provider shall accept (clear) a check made out to the payment service provider up to the amount covered by the payment account indicated on the check by the account holder issuing it. (3) When a payment account is terminated, the account holder shall return all unused checks (the check book) in his possession to the issuing payment service provider. (4) When cashing a cashier s check the payment service provider shall verify the identity of the bearer of the check (payee) by the following procedures: a) when cashing a registered check - unless the check has a blank endorsement - the payment service provider shall examine as to whether the bearer is the same as the payee shown on the check for the cash can only be paid to the person whose name is shown on the check; b) the payment service provider shall pay the amount of the check payable at call to the bearer of the check. (5) The payment service provider shall require the payee whose name is shown on the cashier s check or the bearer to sign the back of the check, acknowledging receipt of the money. Cash Deposits to Payment Accounts Section 43 (1) Apart from the account carrier payment service provider, other payment service providers may also accept cash deposits to payment accounts on the basis of an agreement between the payment service providers involved. (2) Cash may be deposited to payment accounts at any of the designated tellers of the payment service provider referred to in Subsection (1) by using a cash deposit form or by signing the cash desk voucher. (3) The cash deposit form or the cash desk voucher shall inter alia contain the name and account identification number of the account holder who is the intended final recipient of the transferred funds, and reference enabling the payee to identify the payer and any other information transferred with the payment transaction. Cash Withdrawal from Payment Account 20