§ 4-47. When do the payment rules apply across borders?

This section decides when the Act's rules on payment transactions (transfers of money) apply across borders. The main rule is that the rules apply when both banks in the payment, both the payer's and the payee's, are established in the EEA, and the payment is made in the currency of an EEA state. If the currency is a different one, the rules apply only to the part of the payment that takes place in the EEA. Certain rules are then excluded: the requirement to provide information about the maximum execution time and selected paragraphs of § 4-11, § 4-12 and § 4-13.

If only one of the banks is established in the EEA, the rules again apply only to the part that takes place in the EEA. In that case several rules fall away, including § 4-27 on refunds for direct debits (direktebelastninger), § 4-28 and § 4-29 on liability for transactions, and § 4-33 on the service provider's (tjenesteyter) right to compensation (erstatning) for expenses. Parts of § 4-11 and § 4-13 and one letter of § 3-31 are also excluded. Example: a payer in Norway sends money to a payee whose bank is outside the EEA. Then only one bank is in the EEA, and the rules apply to the part that is carried out here.

The exceptions make sense when you look at what the excluded rules say. § 4-11 sets deadlines for transfers: the same business day (virkedag) for domestic payments in kroner, the fourth following business day for other payments to a payee in the EEA, and the seventh business day for payments to a payee outside the EEA, unless otherwise agreed. § 4-12 deals with interest calculation and crediting, and § 4-13 with the right of retention and set-off (motregning) against account balances.

The third paragraph allows the Government to lay down separate rules in regulations on payments to and from countries outside the EEA, and on domestic currency transactions in currencies other than that of an EEA state. This section is the first in a series of special rules that conclude Chapter 4, and § 1-2 refers to it.