§ 1-5. Payment service, payment account and other terms for accounts and payments

Financial Contracts Act·LOV-2020-12-18-146

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§ 1-5. Definitions relating to account agreements and payment services

(1) In this Act, payment service means a service that is subject to a duty to notify or a requirement for a special licence under the Financial Institutions Act (finansforetaksloven), and that comprises one or more of the following business activities:
  1. deposits and withdrawals of cash on an account
  2. activities required to operate an account
  3. payment transactions (betalingstransaksjoner), including transfers of funds on an account carried out by
    1. direct debits initiated by the payee (betalingsmottakeren), including one-off direct debits
    2. use of a payment card or similar device
    3. the payer's (betalerens) instructions for account payments, including standing payment orders (betalingsoppdrag)
  4. execution of payment transactions as mentioned in letter c with funds covered by a credit facility (credit limit)
  5. issuing of payment instruments and acquiring of payment transactions
  6. transfer or receipt of funds without an account agreement
  7. payment initiation services
  8. account information services (kontoinformasjonstjenester).
(2) In this Act, payment instrument means a personalised device or a set of procedures agreed between the customer (kunden) and the payment service provider (betalingstjenesteyteren) and used to initiate payment orders.
(3) In this Act, payment account means an account in the name of one or more customers that is used to execute payment transactions.
(4) In this Act, funds means banknotes and coins as well as deposits and credit on an account and electronic money as defined in the Financial Institutions Act § 2-4 second subsection or rules laid down pursuant to the Financial Institutions Act § 2-4 third subsection.
(5) In this Act, payment order means a request from a payer or payee to a payment service provider to carry out a payment transaction.
(6) In this Act, payment transaction means an act initiated by the payer or on the payer's behalf or by the payee to pay in, transfer or withdraw funds, irrespective of any underlying obligations between the payer and the payee.
(7) In this Act, direct debit means a payment service for debiting the payer's account where the payment transaction is initiated by the payee on the basis of consent given to the payer's own payment service provider, the payee's payment service provider or the payee.
(8) In this Act, account agreement means an agreement governing the future execution of payment transactions in connection with a payment account in the name of one or more customers, as well as an agreement on a deposit account in a bank.
(9) In this Act, payment service provider means a service provider (tjenesteyter) offering financial services (finansielle tjenester) covered by Chapter 4.
(10) In this Act, account provider (kontotilbyder) means a service provider that offers and maintains a payment account for a payer.
Source: Lovdata — Finansavtaleloven (the Financial Contracts Act) § 1-5

What does this mean?

This section brings together the definitions on which Chapter 4 on accounts and payments is based. The first subsection says what a payment service is. The service must be subject to a duty to notify or require a licence under the Financial Institutions Act, and it must fall under one of several specifically listed types of activity. Among them are cash deposits and withdrawals. The list is so broad that money transfers without an account agreement are also included.

Both are therefore payment services.

The other subsections give shorter definitions. A payment instrument is a personalised device or agreed procedure, for example a bank card, used to initiate payments. A payment account is in the name of one or more customers and is used for payments. Funds are notes, coins, deposits, credit on an account and electronic money. For electronic money, the Act refers to the Financial Institutions Act § 2-4, which describes it as electronically stored monetary value, a claim on the issuer, which is issued in return for funds paid in and accepted as a means of payment by others than the issuer. A payment order is a request from the payer or payee to carry out a payment transaction, and a payment transaction is the act itself that pays money in, moves it or withdraws it. A direct debit is when the payee initiates the debit from the payer's account on the basis of consent. An account agreement governs future payments on a payment account, and a deposit account in a bank is also included. Payment service providers and account providers are service providers: the former provides services under Chapter 4, the latter maintains the payment account for the payer.

This section is the starting point for several other rules. It is referred to in § 1-2 (the scope of Chapters 2 to 6), § 4-48 (exception for certain consumer agreements) and § 4-49 (cash withdrawals from cash machines). Consumer (forbruker) and customer are defined in § 1-4, and credit agreement (kredittavtale) in § 1-7.

Related sections
All sections of the Financial Contracts Act →