What are the rules applying to payment institutions on credit duration?
There is no restriction on credit duration for national rules on credit cards. (National rules may provide for a credit duration period longer or shorter than 12 months.) However, when a payment institution wishes to trade in a Member State other than the home Member State in which it is authorised, credit provided through a credit card must be repaid within a short period which must not exceed 12 months. So if an authorised payment institution wishes to start marketing credit cards to users in other Member States, the maximum credit duration period is 12 months. This situation must be clearly distinguished from the use of a national credit in other Member States. For example, if a user is entitled to a credit duration period exceeding 12 months for national payments, this extended credit period will also apply to payments carried out by the same user when using the credit card in other Member States.
