Thank you for contacting us.
First of all, please do allow me to apologise for the late reply to your email. We endeavour to answer every query as soon as possible, but it seems that due to the month of August, your email ‘slipped through the cracks’ and this wasn’t brought to my attention until you raised it here on our community page.
To respond to your question directly, first it is important to clarify some details:
When a user issues a transfer through the Bank section of the Revolut app, that transfer is not sent out by Revolut, but by our payment processor which is Currency Cloud LTD. That is, we are not a ‘payment service provider’ as defined and for the purposes of Directive 2007/64/EC. You can confirm this in the Terms and Conditions of our service which clearly state in item 1.1 that “Revolut Limited does not at any time (…) provide any payment service activities (as defined in the Payment Services Regulations 2009) to Users of the Revolut Service”.
It is also important to clarify that the ‘payment service user’ or ‘payer’ referred to both in the Directive and the Regulations is Revolut, and not the individual Revolut user.
This being said, as you pointed out correctly, Article 69 (1) of the Directive and Article 70 of the Regulation require that payment service provider (i.e. Currency Cloud and not Revolut) ensure that the amount of the transaction is credited to the payee’s payment service provider’s account at the latest by the end of the next business day. This must be done “after the point in time of receipt in accordance with Article 64”.
The body of Article 64 states that “(…) the point in time of receipt is the time when the payment order transmitted directly by the payer or indirectly by or through a payee is received by the payer’s payment service provider. If the point in time of receipt is not on a business day for the payer’s payment service provider, the payment order shall be deemed to have been received on the following business day. The payment service provider may establish a cut-off time near the end of a business day beyond which any payment order received shall be deemed to have been received on the following business day.”
Also, (2) of Article 64 also establishes that “If the payment service user initiating a payment order and his payment service provider agree that execution of the payment order shall start on a specific day or at the end of a certain period or on the day on which the payer has set funds at his payment service provider’s disposal, the point in time of receipt for the purposes of Article 69 is deemed to be the agreed day.” (our bold)
To translate all of this into simpler language, our payment service provider - Currency Cloud LTD - must ensure that the transfer is executed within one business day from the day that the funds for the transfer are made available to them by Revolut. Indeed, they do comply with this rule and you can review their daily cut-off times for each currency in the following link.
You can also see that at the top of that page it clearly states that: “Currency Cloud must have received cleared funds and a Settlement report (if required) before the following cut off times in order for the payments to be processed in that particular run”.
Either way, even though we endeavour to stay within this rule, if payments would take longer than the one day established it would still be within the legal scope of the Directive as Article 68 (2) states that “(…) when the payment service user and his payment service provider agree on a longer period than those laid down in Article 69, for intra-Community payment transactions such period shall not exceed 4 business days (…)” (our bold).
So the time at which a transfer issued via the Revolut app is sent out can depend on a number of factors. First, it is affected by when the user issues the transfer. If the funds will only arrive at the payment service provider after the cut-off time for the specified currency, then the transfer will only be sent out in the next run. That is, for example, if a transfer in GBP to a UK account is communicated to the payment service provider at 14:30, then that transfer will only be sent out on the next run at 14:00 of the next day. For this reason, since the actual arrival date for the transfer is dependant on factors outside of Revolut’s control, we state in our FAQs that it could take 1 to 2 days to arrive as to ensure that we inform the user of the maximum possible timeframe.
Likewise, if the transfer necessitates a conversion in currency, then it will imply a slight increase in time both to make the funds available for transfer as well as for the payee’s payment service provider (i.e. usually the beneficiary’s bank) to make the funds available if a conversion is necessary on their end. Due to this, we state in our FAQs that international deliveries can take a maximum of 5 working days to arrive (although some of these transfers are outside of the scope of the Directive).
In summary, you asked if Revolut felt that it was exempt from complying with Directive 2007/64/EC or the Payment Services Regulations 2009. Indeed, it seems that you have confused the terminology and the position of Revolut in this chain. Revolut is the payment service user and not the payment service provider, and it is up to them to be compliant with the legislation alluded to above. As I have demonstrated, our choice of third party payment service provider - Currency Cloud LTD - does in fact comply with all the relevant requirements.
Incidentally, if you are interested in this topic, I would also point out that Directive 2007/64/EC has been repealed by Directive 2015/2366 which will come into effect in January 2018.
I will also send all of this information to you via email and I might be able to help with your friend’s transfers as well if you send me some of their details to my email. I have posted it here as other users have taken an interest in this topic so I believe it to be fair that they can see it as well.
I do hope that this helped to clarify this matter a bit and please do not hesitate to let me know if you have any further queries or concerns on this issue. Many thanks.