A commercial agent of payee exemption refers to a type of agent who acts on behalf of a merchant to sell the merchant’s goods or services. In the European Union (EU), the Directive on Payment Services (also known as the “Payments Directive”) sets out the rules that apply to payment services and payment service providers within the EU.
According to the Payments Directive, a commercial agent of merchant exemption is not considered to be a payment service provider and is therefore not subject to the licensing requirements set out in the directive. However, this exemption applies only if the commercial agent is acting on behalf of the merchant in a purely ancillary capacity, and not providing payment services on its own behalf.
For example, if a commercial agent is selling goods or services on behalf of a merchant and also facilitating the payment for those goods or services, they would not be considered to be providing payment services and would not be subject to the licensing requirements. However, if the commercial agent is providing payment services as a standalone service, they would be subject to the licensing requirements and would need to be licensed as a payment service provider.
This page was last updated on May 29, 2023.