Credit

According to Article 18.4 PSD2, Payment institutions may grant credit relating to payment services as referred to in point (4) or (5) of Annex I only if all of the following conditions are met: (a)  the credit shall be ancillary and granted exclusively in connection with the execution of a payment transaction; (b)  notwithstanding national rules on providing credit by credit cards, the credit granted in connection with a payment and executed in accordance with Article 11(9) and Article 28 shall be repaid within a short period which shall in no case exceed 12 months; (c)   such credit shall not be granted from the funds received or held for the purpose of executing a payment transaction; (d)  the own funds of the payment institution shall at all times and to the satisfaction of the supervisory authorities be appropriate in view of the overall amount of credit granted. As no further limitations are provided in this provision, it is to be understood that payment institutions may grant credit related to payment services, as referred to in points (4) or (5) of Annex I, to any payment service users who, in accordance with Article 4(10) of PSD2, are defined as natural or legal persons using a payment service in the capacity of payer, payee, or both. Disclaimer: The answer clarifies provisions already contained in the applicable legislation. It does not extend in any way the rights and obligations deriving from such legislation; nor does it introduce any additional requirements for the concerned operators and competent authorities. The answer is merely intended to assist natural or legal persons; including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.