What is the Bank of Spain?

The Bank of Spain (Banco de España) is the central bank of the Spanish State. It is responsible for executing monetary policy within the Eurosystem, ensuring financial system stability, and exercising banking supervision over credit institutions, payment institutions, and electronic money institutions.

For any merchant accepting card payments, the Bank of Spain is the authority that authorizes, registers, and inspects the payment service providers (PSPs) that process those transactions.

The role of the Bank of Spain in card payment processing

The Bank of Spain intervenes in the digital payment chain through specific competencies:

• Authorization and Registration of payment institutions in accordance with Royal Decree-Law 19/2018. No entity can operate without being listed in its public registry.
• Control and Inspection of payment service providers, their agents, and entities to which activities have been outsourced.
• Minimum Capital Requirements: ranging from €20,000 to €125,000 depending on the payment services provided, plus own funds linked to business volume.
• Sanctioning Power, including the revocation of operating licenses.
• Cross-border Supervision coordinated with authorities from other EU Member States.

Regulatory impact and applicable security

The regulatory framework for payments is based on three key regulations:

• Royal Decree-Law 19/2018, the transposition of the PSD2 Directive, which regulates payment services, Strong Customer Authentication (SCA), and user rights.
• Law 10/2014, on the organization and solvency of credit institutions, specifically Title III as it applies to payment entities.
• Law 10/2010, on the Prevention of Money Laundering and Terrorist Financing (AML/CFT), requiring records to be kept for at least 6 years.

This oversight ensures safeguarded funds and a formal claims channel. Check our guide on How to file a claim with the Bank of Spain?.

Operational advantages for E-commerce

• Trust in the Payment Chain: Operating with registered entities reduces the risk of working with unregulated providers.
• Safeguarding of Funds: Payment institutions must safeguard user funds, keeping them strictly separate from their own corporate assets.
• Fee Transparency: Regulations demand clear information regarding charges, execution times, and service conditions.

At PayOk, we operate under the direct supervision of the Bank of Spain. We channel acquiring and the safeguarding of funds through regulated financial entities, ensuring the highest level of compliance and fund protection for your business.