{"release":{"id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","published":"2026-11-01T16:41:30Z","pinned":false},"limits":{"coverage":{"history":"current_only","held_since":"2019-09-06","gaps":[],"covered":["EBA Q&A 2018_4030 — Q&A — Geographical scope of application of the RTS on strong [Final Q&A] L3"],"not_covered":["national guidance","court decisions"]},"freshness":{"release_id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","release_published":"2026-11-01T16:41:30Z","checked_at":"2026-10-26","checked_against":"the EBA publication"},"truncation":null,"failures":[],"incomplete":[]},"page":{"path":"/psd2/level-3/q-and-a/eba/eba-qa-2018-4030-geographical-scope-of-application-of-the-rts-on-strong","url":"https://www.headlesslaw.com/psd2/level-3/q-and-a/eba/eba-qa-2018-4030-geographical-scope-of-application-of-the-rts-on-strong","title":"EBA Q&A 2018_4030 — Q&A — Geographical scope of application of the RTS on strong [Final 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prepared by the European Commission, published in the EBA Q&A tool · not legislation · published 6 Sep 2019 [Final Q&A]","attribution":{"prepared_by":"European Commission","published_by":"EBA","published_in":"EBA Single Rulebook Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2019-09-06","question_submitted_on":"2018-06-28","locators":{"published_on":"EBA Q&A register entry 2018_4030, field 'Final publishing date'","question_submitted_on":"EBA Q&A register entry 2018_4030, field 'Submission date'"}},"adoption":null}},"provenance":{"official_url":"https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2018_4030","check":{"result":"matched","checked_at":"2026-10-26","against":"the EBA publication"},"repo_path":"spaces/psd2/level-3/q-and-a/eba/eba-qa-2018-4030-geographical-scope-of-application-of-the-rts-on-strong.md","body_sha256":"27e835466da3fc95c3c45e9756efb6b081081df153ceee36c6f186e814471d7f"},"units":[],"markdown":"---\ntitle: \"EBA Q&A 2018_4030 — Q&A — Geographical scope of application of the RTS on strong [Final Q&A]\"\nshortTitle: \"EBA Q&A 2018_4030 — Q&A — Geographical scope of application of the RTS on strong [Final Q&A]\"\nanswer_id: EBA_QA_2018_4030\nstatus: \"Final Q&A\"\ntype: qa\ninstrument_type: qa\nauthority: EBA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"PSD2\"\npsd2_level3: true\nmica_level2: false\nlegal_basis: \"Article 97 PSD2\"\ndate: 6 September 2019\nsource_link: https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2018_4030\nlifecycle: \"Final Q&A\"\ntext_version: \"EBA Q&A register, 6 September 2019\"\nsource_url: \"https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2018_4030\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the EBA publication\"\nsource:\n  prepared_by: \"European Commission\"\n  published_by: \"EBA\"\n  published_in: \"EBA Single Rulebook Q&A tool\"\n  evidence:\n    prepared_by: \"Answer prepared by the European Commission because it is a matter of interpretation of Union law.\"\n    locator: \"EBA Q&A register entry 2018_4030, field 'Answer prepared by'\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2019-09-06\"\n  question_submitted_on: \"2018-06-28\"\n  locators:\n    published_on: \"EBA Q&A register entry 2018_4030, field 'Final publishing date'\"\n    question_submitted_on: \"EBA Q&A register entry 2018_4030, field 'Submission date'\"\nlifecycle_label: \"Final Q&A\"\n---\n\n**Answer prepared by the European Commission, published in the EBA Q&A tool · not legislation · published 6 Sep 2019 [Final Q&A]**\n\n*Final Q&A · EBA Q&A register, 6 September 2019 · Checked against the EBA publication on 26 Oct 2026 · [Official source](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2018_4030)*\n\n| | |\n|---|---|\n| **Full title** | EBA Q&A 2018_4030 — Q&A — Geographical scope of application of the RTS on strong \\[Final Q&A\\] |\n| **Prepared by** | European Commission |\n| **Published by** | EBA, in the EBA Single Rulebook Q&A tool |\n| **Reference** | EBA_QA_2018_4030 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 6 September 2019; question submitted 28 June 2018 |\n| **Legal basis** | Article 97 PSD2 |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the EBA publication |\n\n**Geographical scope of application of the RTS on strong customer authentication (SCA) and secure communication requirements – ‘Two-leg’ transactions**\n\n### Question\n\nIs it necessary that issuer, acquirer, cardholder and merchant be all located in the EEA for the RTS on SCA requirements to apply to two-leg transactions?\n\nMay the issuer use the merchant’s location as a proxy (in lieu of the acquirer’s location)?\n\n### Background\n\nThe PSD2 applies to payment transactions where both the issuer and the acquirer are located within the EEA (‘two-leg’ transactions). The location of the cardholder and the merchant is not relevant.\n\nThis is because only the location of the ‘payer’s payment service provider’ (i.e., in the case of card transactions, the issuer) and of the ‘payee’s payment service provider’ (i.e., in the case of card transactions, the acquirer) is relevant to determine whether a transaction is subject to the PSD2 requirements (Article 2 PSD2).\n\nOther industry players argue that the location of the cardholder and the merchant is relevant and the RTS apply only if all the parties involved in the transaction (i.e., not only the issuer and the acquirer, but also the cardholder and the merchant) are located in the EEA.\n\nIn our view, the location of the merchant may only be taken into account if the issuer is technically unable to determine the location of the acquirer. In this case, the issuer should be allowed to take the location of the merchant as a proxy (in lieu of that of the acquirer).\n\n***\n\n### Answer\n\nArticle 2(1) PSD2 states that the Directive applies to payment services provided within the Union. According to Article 2(2) PSD2 Title IV, including Article 97 PSD2, applies to payment transactions in the currency of Member State where both the payer's payment service provider (PSP) and the payee's PSP are, or the sole PSP in the payment transaction is, located within the Union (two-leg transaction).\n\nIt follows that where both PSPs are, or the sole PSP in a payment transaction is, located within the Union, strong customer authentication (SCA) has to be applied in accordance with Article 97 PSD2 and the Commission Delegated Regulation (EU) 2018/389.\n\nIn regards to the geographical scope as defined in Article 2(2) PSD2 the location of the payer and/or the payee is not relevant. The PSPs are the obliged entities in regards to SCA.\n\nDisclaimer:\n\nThis question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Financial Stability, Financial services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.\n\n***\n\n**Source:** [EBA original document](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2018_4030)\n\n## Related Level 1 articles\n\n- [Article 97 — Authentication](../../../articles/97.md)\n"}