CJEU rules on scope of variation provisions under PSD2

Banks and other payment service providers will be relieved to hear that the CJEU in the case of DenizBank AG v Verein für Konsumenteninformation has not followed the previous Advocate General’s (AG) opinion that tacit (or passive) acceptance of changes to T&Cs in payment services contracts could only be available for 'non-essential changes'. Instead, the CJEU found that PSD2 does not restrict the type of terms that can be changed by tacit consent, but where the payment service user is a consumer the UCTD applies. However, the Court has confirmed the AG’s other finding that contactless functionality is a separate payment instrument.