(1) Regulations 86 to 88 apply to any payment transaction -
(a) executed wholly within the qualifying area in euro under a payment scheme which operates across the qualifying area;
(b) executed wholly within the United Kingdom in sterling; or
(c) executed wholly under a payment scheme which operates across the qualifying area and involving only one currency conversion between the euro and sterling, provided that -
(i) the currency conversion is carried out in the United Kingdom; and
(ii) in the case of cross-border payment transactions, the cross-border transfer takes place in euro.
(2) In respect of any other payment transaction, the payment service user may agree with the payment service provider that regulations 86 to 88 (except regulation 86(3)) do not apply.
(3) In paragraph (1), "the qualifying area" means the area of the United Kingdom and the EEA States.