Payment Services Framework Contract (PSD2)

Version 1.0
Effective Date: [Add Date]

Introduction

This Payment Services Framework Contract outlines how Evolution Ltd provides payment services to personal and business customers. It is required under the EU Payment Services Directive (PSD2) and applies to all payment accounts, transfers, card transactions, standing orders, direct debits, and other regulated payment services offered by Evolution.

This Contract forms part of the broader legal agreement between you and Evolution and should be read together with the General Terms & Conditions, Fees and Charges Schedule, Cardholder Agreement, and any feature-specific terms.

By using Evolution payment services, you accept this Contract.

1. About Evolution and Payment Services

Evolution Ltd is a licensed European credit institution supervised by the Bank of Lithuania. Under PSD2, we are authorized to:

Provide payment accounts
Execute payment transactions
Issue payment instruments
Send and receive transfers within SEPA
Process international transfers
Provide currency exchange services connected to payments
Support direct debits and standing orders
Provide payment initiation and account information services when applicable

We may introduce or remove payment features from time to time.

2. Your Payment Account

Your Evolution account enables you to:

Hold and manage electronic money or bank deposits
Make payments within SEPA
Send and receive international transfers
Use cards for purchases and withdrawals
Access payment-related services within the Evolution app

Your payment account may support multiple currencies where available.
You must maintain a positive balance in each currency unless overdraft services are offered to you explicitly.

3. Making Payments

You may initiate payments using:

The Evolution app
Cards issued by Evolution
Digital wallets such as Apple Pay or Google Pay
Standing orders or scheduled payments
Third-party payment initiation services (where permitted)

To make a payment, you must provide accurate recipient details including:

Name
IBAN or other required account details
Amount and currency
Payment reference (optional)

We are not responsible for losses caused by incorrect payment information you provide.

4. Execution of Payments

Payments are processed according to the following general rules:

SEPA transfers normally execute on the same business day if received before cut-off
SEPA Instant transfers are processed immediately if supported by the recipient bank
International transfers may take several days depending on the payment network and country
Internal transfers between Evolution customers are normally instant

We may delay or block a payment if:

Legal, regulatory, or sanctions checks require it
We detect unusual or suspicious activity
You have insufficient funds
Information provided is incomplete or appears incorrect

Cut-off times and processing details may be published in the app or support pages.

5. Receiving Payments

You may receive:

SEPA transfers
International transfers
Internal Evolution transfers
Refunds or reversals
Merchant payouts if applicable

We may reject or hold incoming funds pending additional verification, especially when:

We need to confirm the sender
We detect possible fraud or sanctions risk
Compliance checks are required
The payment is inconsistent with your expected account activity

Funds are credited only when received and cleared.

6. Strong Customer Authentication

To comply with PSD2, most payments require strong customer authentication.
You may be required to confirm your identity using:

Passcodes
Biometric authentication
Device-binding
One-time verification codes
App confirmations

Some low-risk or low-value transactions may be exempt under PSD2 rules.

If you do not complete authentication, the payment may be declined.

7. Payment Limits

We may set limits on:

Daily or monthly transfers
ATM withdrawals
Card payments
Currency conversions
Incoming or outgoing international payments

Limits depend on your plan, account type, verification status, risk profile, and regulatory requirements.

We may raise or lower limits based on risk assessment.

8. Refusing or Blocking Payments

We may refuse or block a payment if:

Funds are insufficient
The account is restricted or frozen
You exceed applicable limits
We detect compliance or security risks
The payment appears unusual or suspicious
Sanctions rules or legal requirements apply

In most cases, we will inform you why the payment was refused unless we are legally prohibited from doing so.

9. Reversals, Returns, and Failed Payments

Payments may be reversed or returned due to:

Incorrect beneficiary details
Closed or restricted beneficiary accounts
Correspondent bank issues
Sanctions violations
Compliance holds

Returned funds will be credited back to your account, minus any intermediary fees.

We are not responsible for charges imposed by other banks.

10. Unauthorized or Incorrectly Executed Payments

If a payment is unauthorized, you must notify us immediately.

We will investigate and, where required by law:

Refund unauthorized transactions
Restore your account balance to where it would have been
Explain our decision if a refund is not granted

You may be liable up to €50 for losses before reporting the loss or theft of your device or card.

You are responsible for losses if:

You acted fraudulently
You failed to keep your credentials secure
You excessively delayed reporting unauthorized activity

If a payment was executed incorrectly by Evolution, we will refund it without delay and trace the payment where possible.

11. International Payments

International transfers may involve:

Multiple intermediary banks
Correspondent banking fees
Longer processing times
Additional compliance checks
Exchange rate movements

You are responsible for providing accurate bank details including:

Recipient name
SWIFT/BIC
Account number or IBAN
Country and bank information

We may require additional documentation for large or unusual transfers.

12. Foreign Exchange

If a payment involves currency conversion:

You will be shown or notified of the exchange rate where possible
Rates may include a markup or spread
Weekend or out-of-hours pricing adjustments may apply

Exchange rates can fluctuate and may differ from market rates available elsewhere.

Full details are provided in the FX & International Transfer Terms.

13. Direct Debits and Standing Orders

If supported in your region, you may set up:

Recurring standing orders
Direct debits authorized through a merchant

For standing orders:

You must maintain sufficient funds
We may cancel the order if repeated failures occur

For direct debits:

Refund rights follow SEPA Direct Debit rules
You may cancel mandates through the merchant or in the app

14. Third-Party Providers (PSD2: PIS & AIS)

You may authorize regulated third-party providers to:

Initiate payments on your behalf (PIS)
Access your account information (AIS)

You must:

Ensure the provider is licensed
Review permissions granted
Monitor access for suspicious activity

We may refuse access to a third-party provider for security or regulatory reasons.

15. Disputing Payments

You may dispute payments that are:

Unauthorized
Incorrectly executed
Duplicated
Processed for the wrong amount
Not received by the beneficiary

We may require documentation.
Chargeback disputes must follow card network rules.

16. Fees and Charges

Fees apply to:

SEPA transfers
International payments
Currency conversions
Card payments outside your plan limits
Returned or rejected payments
Chargeback investigations

All fees are listed in the Fees and Charges Schedule.

17. Temporary Restrictions and Freezes

We may restrict your payment services if:

Compliance checks are ongoing
We suspect fraud or unusual patterns
We need additional documents
We are required to do so by regulators or law enforcement

We will restore access when the issue is resolved.

18. Changes to This Contract

We may update this Contract for regulatory, operational, or security reasons.
Where required by law, we will give you advance notice.

Continued use of Evolution payment services means you accept the updated terms.

19. Governing Law

This Contract is governed by Lithuanian law and applicable EU regulations including PSD2.

Disputes may be resolved through:

Evolution support
Internal complaint procedures
The Bank of Lithuania dispute resolution service
Courts where applicable

20. Contact Information

Evolution Ltd
[Registered Address]
[Support Email]
[Website]