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Zuora's understanding of co-badged card compliance in the EU

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Zuora's understanding of co-badged card compliance in the EU

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Regulation overview

The Regulation 2015/751 of the European Payments Initiative (EPI) requires that cardholders with co-badged cards be clearly informed of their payment scheme options if the service they are signing up for supports both schemes. The regulation emphasizes the following principles:

  • Transparency: Cardholders must see all available payment schemes.
  • Simplicity: The selection mechanism is straightforward and user-friendly.
  • Autonomy: Cardholders can choose their preferred scheme without merchant interference.

Merchant applicability

  • Accepted scheme disclosure: Merchants must clearly display which payment schemes they accept before a transaction begins.
  • Default scheme: If a merchant accepts only one scheme of a co-badged card, the payment page must default to that scheme, though the consumer should be informed of their choice.
  • Non-applicability: Article 10 of the regulation states that if a merchant does not offer both schemes of a co-badged card, the merchant only needs to default the scheme choice to the supported option. This regulation does not require merchants to introduce support for additional brands. It indicates that merchants offering both must allow the consumer to choose which scheme to use for the transaction.

Example of a co-badge card

A typical example of a co-badge card is a German Girocard co-badged with Visa. This card can be used within Germany under the Girocard scheme and internationally under the Visa scheme.

Zuora's position

  • Current status: Zuora does not support co-badge cards at present and therefore our Hosted Payment Pages 2.0 and Payment Forms do not offer an option to select a scheme. For example, the Girocard co-badged with Visa can only be processed as Visa by Zuora's current payment system.
  • Future support: Zuora will ensure its payment framework can handle co-badge cards. Once support is launched for a co-badge scheme, consumers will be able to select their preferred payment scheme in compliance with the new regulations.

This approach ensures that Zuora stays compliant with the EPI regulation while planning for future capabilities. This strategy aligns with the broader objectives of the European Commission's Competition Policy.