1. This Regulation lays down uniform technical and business requirements for card-based payment transactions carried out in the United Kingdom, where both the payer's payment service provider and the payee's payment service provider are located in the United Kingdom.

2. This Regulation does not apply to services based on specific payment instruments that can be used only in a limited way, that meet one of the following conditions:

(a) instruments allowing the holder to acquire goods or services only in the premises of the issuer or within a limited network of service providers under direct commercial agreement with a professional issuer;

(b) instruments which can be used only to acquire a very limited range of goods or services;

(c) instruments valid only in the United Kingdom provided at the request of an undertaking or a public sector entity and regulated by a national or regional public authority for specific social or tax purposes to acquire specific goods or services from suppliers having a commercial agreement with the issuer.

3. Chapter II does not apply to the following:

(a) transactions with commercial cards;