Regulation on the limited network exclusion (Payment Services)
Notice no. 3 /2023 of the Bank of Portugal on the limited network exclusion established on the Legal Regime for Payment Services and Electronic Money
On 14th of March was published the Notice no. 3/2023 of the Bank of Portugal (hereinafter "Notice") on the limited network exclusion established on the Legal Regime for Payment Services and Electronic Money, approved by Decree-Law no. 91/2018, of 12th of November (hereinafter "RJSPME").
Article 5, no. 1/ k)/ i) and ii) of RJSPME exempts from its scope services based on specific payment instruments that can only be used in a limited manner and meet one of the following conditions:
- Instruments that only allow the purchase of goods or services by their holder in the premises of the issuer or in a limited network of service providers under direct commercial agreement with a professional issuer; or
- Instruments which can be used to acquire a very limited range of goods or services.
The providers of the above-mentioned services, whose total value of payment transactions executed in the previous 12 months exceeds the amount of 1 million euros, must submit to the Bank of Portugal a description of the services provided and a description of the exception of the RJSPME from which they will benefit.
The Notice clarifies the procedure for this communication to the Bank of Portugal; defines the content of the communication, as well as the publication rules of the instruments covered by the exclusion.
The communication must be made within 30 days after the date the value of the operations reaches one million euros.
Where a substantial change in any of the information previously provided to the Bank of Portugal is to occur, the issuer must communicate such change, in writing, at least 30 days before the date of its occurrence.
A transitional rule is also set out for issuers who have already communicated such an exemption to the Bank of Portugal. In that case, within 90 days, a new communication compliant with the provisions of the Notice, must be sent to the Bank of Portugal.
The Notice entered into force on 15th of March and any breach of the provisions of the Notice is punishable under the RJSPME.
To access to the entire wording of Notice of Bank of Portugal no. 3/ 2023, please click here.
For more information on this subject, please contact:
Head of the Banking and Finance Department