1. This Regulation lays down rules for credit transfer and direct debit transactions denominated in euro within the qualifying area, where -

(a) the payer’s payment service provider and the payee’s payment service provider are both located in the United Kingdom,

(b) either of those payment service providers is located in the United Kingdom and the other is located in another qualifying State, or

(c) the sole payment service provider (PSP) involved in the payment transaction is located in the United Kingdom.

2. This Regulation does not apply to the following:

(a) payment transactions carried out between and within PSPs, including their agents or branches, for their own account;

(b) payment transactions processed and settled through large-value payment systems, excluding direct debit payment transactions which the payer has not explicitly requested be routed via a large-value payment system;