{"release":{"id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","published":"2026-11-01T16:41:30Z","pinned":false},"limits":{"coverage":{"history":"current_only","held_since":"2019-03-01","gaps":[],"covered":["EBA Q&A 2018_4404 — Q&A — Subsequent instances of a recurring card payment [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-2018-4404-subsequent-instances-of-a-recurring-card-payment","url":"https://www.headlesslaw.com/psd2/level-3/q-and-a/eba/eba-qa-2018-4404-subsequent-instances-of-a-recurring-card-payment","title":"EBA Q&A 2018_4404 — Q&A — Subsequent instances of a recurring card payment [Final 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prepared by the European Commission, published in the EBA Q&A tool · not legislation · published 1 Mar 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":"2019-03-01","question_submitted_on":"2018-12-04","locators":{"published_on":"EBA Q&A register entry 2018_4404, field 'Final publishing date'","question_submitted_on":"EBA Q&A register entry 2018_4404, field 'Submission date'"}},"adoption":null}},"provenance":{"official_url":"https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2018_4404","check":{"result":"matched","checked_at":"2026-10-26","against":"the EBA publication"},"repo_path":"spaces/psd2/level-3/q-and-a/eba/eba-qa-2018-4404-subsequent-instances-of-a-recurring-card-payment.md","body_sha256":"b247bcf4c03d9c7a7d0253ee6ff5bf8e3d9da61eb2e3a5921bace1a8307c4982"},"units":[],"markdown":"---\ntitle: \"EBA Q&A 2018_4404 — Q&A — Subsequent instances of a recurring card payment [Final Q&A]\"\nshortTitle: \"EBA Q&A 2018_4404 — Q&A — Subsequent instances of a recurring card payment [Final Q&A]\"\nanswer_id: EBA_QA_2018_4404\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(1) PSD2\"\ndate: 1 March 2019\nsource_link: https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2018_4404\nlifecycle: \"Final Q&A\"\ntext_version: \"EBA Q&A register, 1 March 2019\"\nsource_url: \"https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2018_4404\"\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_4404, field 'Answer prepared by'\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2019-03-01\"\n  question_submitted_on: \"2018-12-04\"\n  locators:\n    published_on: \"EBA Q&A register entry 2018_4404, field 'Final publishing date'\"\n    question_submitted_on: \"EBA Q&A register entry 2018_4404, 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 1 Mar 2019 [Final Q&A]**\n\n*Final Q&A · EBA Q&A register, 1 March 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_4404)*\n\n| | |\n|---|---|\n| **Full title** | EBA Q&A 2018_4404 — Q&A — Subsequent instances of a recurring card payment \\[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_4404 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 1 March 2019; question submitted 4 December 2018 |\n| **Legal basis** | Article 97(1) PSD2 |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the EBA publication |\n\n**Subsequent instances of a recurring card payment transaction, other than the first, initial one, are transactions initiated by the payee only. This is also the case for card instalment transactions.**\n\n### Question\n\nAre the subsequent instance of card payment recurring transactions (other than the first, initial one) and of instalment transactions (again, subsequent to the initial one) transactions initiated by the payee only?\n\n### Background\n\nThe SEPA Cards Standardisation Volume of the European Cards Stakeholders Group defines for recurring card payment and for instalment card payments the initial transaction and the subsequent transactions.\n\nThe initial transactions in both cases are defined as “cardholder present” transactions. The cardholder will initiate the transaction. Cardholder Verification is required.\n\nHowever, the subsequent transactions are defined as “cardholder not present” transactions. The merchant (“payee”) will initiate these instances without any interaction with the cardholder (“payer”) and a verification of the cardholder can’t be performed and is therefore not required.\n\nThese subsequent instances of the transaction are based on an initial mandate by the payer authorizing the payee to initiate the periodic payments and a pre-existing agreement between the payer and the payee for the provision of products or services. Their functioning is identical to that of direct debits.\n\n***\n\n### Answer\n\nPSD2 distinguishes in point 3 of Annex I of PSD2 three types of electronic payment transactions, notably (a) direct debits, including one-off direct debits, (b) payment transactions through a payment card or a similar device, and (c) credit transfers including standing orders.\n\nCard-based transactions imply an action of the payer in the initiation of the transaction, involving the use of a payment card or a similar device that has been issued to the payer and that is accepted as a payment method by the payee. Card-based transactions are therefore considered as payment transactions initiated by the payer through the payee.\n\nHowever, where the payer has given a mandate authorising the payee to initiate a transaction or a series of transactions through a particular payment instrument that is issued to be used by the payer to initiate the transactions, and where the mandate is based on an agreement between the payer and that payee for the provision of products or services, the (recurrent) transactions initiated by the payee thereafter on the basis of such a mandate can be qualified as payee initiated transactions, provided that these payments are not dependent on a specific action of the payer to trigger the initiation of the payment by the payee.\n\nWhere the payer has not given a mandate to the payee, but to its own payment service provider or to initiate a transaction or a series of transactions through the use of a particular payment instrument (through the use of the card details attached to that payment instrument), the transactions cannot be equated to transactions that are only initiated by the payee.\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_4404)\n\n## Related Level 1 articles\n\n- [Article 97 — Authentication](../../../articles/97.md)\n"}