Notwithstanding Article 7, Member States must require payment institutions (excluding those offering only services referred to in point (7) or (8) of Annex I) to hold own funds at all times calculated under one of three methods determined by the competent authorities. Method A: own funds of at least 10% of the preceding year’s fixed overheads (or projected fixed overheads for incomplete years), adjustable for material business changes. Method B: own funds equal to specified percentages of payment volume (PV = one twelfth of annual transactions) by tier — 4.0% up to EUR 5m; 2.5% EUR 5-10m; 1% EUR 10-100m; 0.5% EUR 100-250m; 0.25% above EUR 250m — multiplied by scaling factor k.

Method C: own funds equal to the relevant indicator (interest income; interest expenses; commissions and fees received; other operating income, each included with its positive or negative sign; excluding extraordinary or irregular items; outsourcing expenditure may reduce the indicator if incurred from an undertaking supervised under this Directive), calculated on a 12-month basis at the end of the previous financial year and not falling below 80% of the average of the previous three financial years, multiplied by the multiplication factor (10% up to EUR 2.5m; 8% EUR 2.5-5m; 6% EUR 5-25m; 3% EUR 25-50m; 1.5% above EUR 50m) and by scaling factor k. Scaling factor k is 0.5 where only the payment service in point (6) of Annex I is provided and 1 where any of services (1)–(5) are provided. Competent authorities may require up to 20% higher or permit up to 20% lower own funds based on evaluation of risk-management processes, risk loss data base and internal control mechanisms.