Payment account definition

Does an account provided by a payment service provider, linked to a payment instrument that can be used to make payment transactions to [certain] third parties (e.g. merchants) from that account, as well as to withdraw cash from that account (e.g. from an ATM) and receive incoming payments in the respective account from the same payment users to which the funds were transferred (i.e, refunds from merchants) fall under the definition of a payment account in accordance with PSD2, even if the respective account cannot receive funds from third parties via credit transfers?

Article 4, point (12) PSD2 states that “a ‘payment account’ means an account held in the name of one or more payment service users which is used for the execution of payment transactions”. The European Court of Justice has clarified in Case C-191/17 that a payment account must enable the execution of payment transactions to qualify as a payment account (e.g., transfers, direct debits, card payments).  The EBA stated in Q&A 2019_4856: “To determine whether an account where funds are covered by a credit line qualifies as payment account, one must assess whether the account can be used for the execution of payment transactions in conformity with the definitions above as interpreted by the European Court of Justice in its ruling in Case C-191/17. The account should allow for sending and receiving funds to and from a third party.” The EBA further clarified in Q&A 2019_4856 that “if an account where funds are covered by a credit line can be used to send and receive payment transactions to and from a third party, and provided that the account is accessible online, it shall be made available to account information service providers, payment initiation service providers and issuers of card-based payment instruments in accordance with Articles 65, 66 and 67 PSD2.” Furthermore, Article 4(5) of PSD2 defines a payment transaction as ‘an act, initiated by the payer or on his behalf or by the payee, of placing, transferring or withdrawing funds, irrespective of any underlying obligations between the payer and the payee’. As regards refunds from merchants, the EBA also clarified in Q&A 2019_4855 that “the refund initiated by a merchant, which in this case acts in its capacity as a payer, is an electronic payment transaction initiated by the payer”, which means that a refund from a merchant can be deemed as a separate payment transaction within the meaning of Article 4(5) of PSD2.