Payment Accounts Directive (PAD)

The PAD aims at improving the transparency and comparability of fee information on payment accounts, helping people switch payment accounts and ensuring access to a basic bank account for every EU resident.

Under PAD, member states have to ensure that consumers have access to websites that compare fees charged by PSPs. Prices of packaged services or products will also have to be reported to consumers, if the products/services in the package can be bought separately.

PAD came into effect in September 2014 and is expected to contribute to the objectives of ensuring an appropriate level of consumer protection and promoting effective competition in the interests of consumers. The EU member countries must transpose the directive in national laws within two years of its coming into effect with a current regulatory deadline of September 2016. 18 September 2016 is the main date, further elements are getting into force at other dates.

For the Netherlands the dates still to come are:

  • 31 October 2018 to use standardised terminology in contractual, commercial and marketing information. And the requirement to supply standardised information to prospects.
  • 31 October 2019 at the latest for the delivery of a yearly overview of costs.


Implementation / enforcement 07/2011 - 05/2013
Discussion / consultation 05/2013 - 09/2014
Implementation / enforcement 09/2014 - 09/2016
In effect 09/2016 -

Member States are required to implement the PAD by 18 September 2016.

In some countries, switching payment accounts is enabled e.g. in the Netherlands through the ‘overstapservice.’ However, other payment service providers (PSPs) of banks would still be forced to make changes that include producing a standard form fee information document and a glossary using the EBA terminology and updating marketing materials and account statements according to the EBA terminology. All PSPs should consider whether to offer accounts that fall within the scope.

Under PAD, basic bank accounts will have to be offered that include basic features. The EU Commission has provided a list, but member states are entitled to add services to the list of basic features in their jurisdiction.

Further information:
European Commission: Bank Accounts

Martijn Berghuijs Director
Categories: Financial Market Organisation