This law matters most for fintechs, platforms, marketplaces and businesses that do more than simply accept card payments through a standard provider. If customer money moves through your product, you need to know whether you are providing a regulated payment service or relying on a partner that is.
Main laws
United Kingdom Regulation
Payment Services Regulations 2017
The Payment Services Regulations 2017 regulate many UK payment services, including authorisation, conduct, information and safeguarding...
In forceUnited KingdomPlain-English guide4 practical checks
Plain-English explainers, not legal advice. Use the linked official source for section-level detail, and get advice for your situation.
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Quick read
- This law matters most for fintechs, platforms, marketplaces and businesses that do more than simply accept card payments through a standard provider.
- If customer money moves through your product, you need to know whether you are providing a regulated payment service or relying on a partner that is.
Likely relevant if
- Fintech startups
- Marketplaces and platforms handling payments
- Payment facilitators and wallet products
Check first
- Check whether the business provides a regulated payment service
- Use the right authorisation, registration or exemption analysis
- Set customer information, complaint and security processes
What this means in practice
Key points
- Payment flow diagrams are often the fastest way to spot regulatory risk.
- Calling a payment movement a pass-through does not decide the legal position.
- Partner contracts should say who handles authorisation, safeguarding, refunds and complaints.
When this law usually matters
Most businesses do not need to memorise the whole law. The useful starting point is to know when it is likely to affect a contract, customer journey, employee process, data flow or company decision.
Key points
- Fintech startups
- Marketplaces and platforms handling payments
- Payment facilitators and wallet products
- Businesses embedding payment flows into software
What to check first
Sense check
- Check whether the business provides a regulated payment service
- Use the right authorisation, registration or exemption analysis
- Set customer information, complaint and security processes
- Keep partner, safeguarding and funds-flow arrangements documented
Documents and workflows to review
Key points
- Funds-flow diagram
- Payment provider agreement
- Customer payment terms
- Complaints process
- Safeguarding or settlement records