Due to the current emergency caused by the COVID-19 pandemic, Bank of Italy has postponed the deadline for reporting data relating to the activity carried out in 2019 by the issuers of payment instruments covered by the limited network and limited range exclusions set forth in PSD2, from 30 April to 30 June 2020 (e.g. gift cards, e-vouchers, some fuel cards).
The postponement of the notification obligation also refers to issuers which have not previously reported any data and which have to do so this year.
By 30 June 2020, issuers of payment instruments covered by the limited network exclusion shall notify Bank of Italy with the total value of payment transactions made through these payment instruments pursuant to the terms and conditions provided by the Regulation issued by Bank of Italy on 11 October 2018 ("Regulation").
All issuers of these payment instruments, both Italian and foreign, operating (at least) in Italy, are subject to this reporting obligation.
This reporting mechanism is meant to allow Bank of Italy to be made of payment instruments allegedly qualifying for the limited network and limited range exemption, so that Bank of Italy may scrutinise them and get comfortable that they indeed meet the relevant legal requirements.
The exclusion applies to (1) "instruments allowing the holder to acquire goods or services only in the premises of the issuer or within a limited network of service providers under direct commercial agreement with a professional issuer" (typically referred to as the limited network exclusion); and (2) "instruments which can be used only to acquire a very limited range of goods or services" (the limited range exclusion).
What happens next?
A) Issuers who notified Bank of Italy in 2019
If in 2019 the total value of the payment transactions carried out using payment instruments covered by the limited network and limited exclusions was greater than 1 million Euros, the issuers are required to notify Bank of Italy, by 30 June 2020, with the information provided under Annex A -1 of the Regulation.
B) Issuers who did not notify Bank of Italy in 2019
By 30 June 2020, issuers shall notify Bank of Italy with the information provided under Annex A-2 of the Regulation. This communication shall be filed with Bank of Italy even if, in 2019, the overall value of the transactions carried out using payment instruments was less than 1 million Euros.
C) In both cases above
In regard to the threshold of 1 million Euros, issuers shall refer to the total value of payment transactions made through such payment instruments in all of the different countries they operate in.
Should you have any questions about the above or in order to advise you in the subject matter, please do not hesitate to contact one of the members of the Bird & Bird global payments team.
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