The Law defines e-money as “monetary value that is issued in exchange for funds accepted by the e-money issuing institution, stored electronically, used to carry out the payment transactions defined in this Law, and also accepted as a payment instrument by natural and legal persons other than the e-money issuing institution”. An e-money institution is a legal entity authorized under the Law to issue e-money. According to the Law, this legal entity must be established as a joint stock company, and the company and its shareholders must meet the conditions specified in the second paragraph of Article 18 of the Law. An e-money institution granted an operating license under Article 18 of the Law will be able to carry out, in addition to issuing e-money, the payment services listed in the first paragraph of Article 12 of the Law.
Article 12 of the Law is provided below:
ARTICLE 12 – (1) Payment services under this Law;
a) All transactions necessary for operating a payment account, including services that enable funds to be deposited into and withdrawn from a payment account,
b) Money transfers, including direct debit transactions (including one-off ones), payment transactions made with a payment card or similar instrument, and standing payment orders, involving the transfer of funds in a payment account held by the payment service user with a payment service provider,
c) The issuance or acceptance of payment instruments,
c1) Money remittance,
d) Payment transactions where the sender's consent to the execution of the payment transaction is given by means of an information technology or electronic communication device, and the payment is made to an information technology or electronic communication operator acting only as an intermediary between the payment service user and the supplier of goods or services,
e) Services for intermediating bill payments,
f) (Added: 12/11/2019-7192/Art. 8) Payment order initiation services provided, at the request of the payment service user, in respect of a payment account held with another payment service provider,
g) (Added: 12/11/2019-7192/Art. 8) Provided that the consent of the payment service user is obtained, the service of presenting, on online platforms, consolidated information on one or more payment accounts of the payment service user held with payment service providers,
g1) (Added: 12/11/2019-7192/Art. 8) Other transactions and services in the field of payments that reach a level, in terms of total size or sphere of impact, to be determined by the Bank,
means the above.
(2) The following transactions and services are not considered payment services under this Law:
a) Payment transactions made directly in cash to the payee without the use of an intermediary
b) Payment transactions made through a commercial agent authorized to negotiate or conclude the sale or purchase of goods or services on behalf of the sender or the payee
c) Payment transactions made by collecting and delivering cash as part of non-profit or charitable activities
c1) Services in which, at the express request of the payment service user immediately before the execution of a payment transaction arising from the purchase of goods or services, cash is given by the payee to the sender as part of the transaction
d) Foreign currency purchase and sale transactions carried out in cash that are not linked to a payment account
e) Payment transactions carried out by means of any of the following: negotiable instruments under Law No. 6102, foreign bank checks, traveler's checks and paper postal money orders
f) Payment transactions carried out in systems among the Bank, settlement institutions, central counterparties, clearing houses, payment service providers and other participants of the system, on their own behalf and account
g) Payment transactions of the legal entities referred to in subparagraph (f) of this paragraph and of capital market institutions relating to capital market activities under Capital Markets Law No. 6362 dated 6/12/2012
g1) Services provided by technical service providers that support the performance of authorization transactions in payment services and that cover data processing, storage, security, confidentiality protection and verification, as well as the supply and maintenance of information technology, communication networks and instruments used for payment services, and in which the technical service providers do not at any point of the transaction own the funds transferred
h) Transactions relating to instruments that can be used to purchase goods or services only at the premises of the issuer of the payment instrument, within a limited network of service providers, or for a limited range of goods or services under a commercial agreement with the issuer
i1) Payment transactions carried out by means of an information technology or electronic communication device, where the information technology or electronic communication operator does not act only as an intermediary between the payment service user and the supplier of goods or services, and where the purchased goods or services are delivered to and used through the information technology or electronic communication device
i2) Payment transactions carried out on their own behalf and account between payment service providers and their agents or branches
j) Payment services carried out between a parent company and its subsidiaries, or among subsidiaries themselves, in which no payment service provider other than a company of the same group acts as an intermediary
k) Cash withdrawal services through ATMs operated by a service provider that does not offer any of the payment services and is not a party to a framework contract with the customer withdrawing money from the payment account, and that acts on behalf of one or more card-issuing institutions
l) Other transactions and services to be determined by the Bank 1
(3) (Amended: 12/11/2019-7192/Art. 8) The procedures and principles regarding payment services, the rights and obligations of the parties within the scope of payment services, the information and conditions to be provided regarding the payment service, and framework contracts shall be determined by a regulation to be issued by the Bank after obtaining the opinion of the Financial Crimes Investigation Board.
(4) (Added: 12/11/2019-7192/Art. 8) The Bank is authorized to determine the nature and the maximum amounts or rates of fees, expenses, commissions and other benefits, under any name, received by one of the parties to a transaction for a specific type of transaction within the scope of payment services, and to fully or partially liberalize them.
(5) (Added: 12/11/2019-7192/Art. 8) If the transactions in subparagraphs (b) and (h) of the second paragraph reach a level, in terms of total size and sphere of impact, to be determined by the Bank, the Bank may decide that they be considered payment services under this Law.
(6) (Added: 12/11/2019-7192/Art. 8) The legal relationships to which payment service providers are party due to their activities subject to this Law are monitored by the Bank. If the Bank determines that there are practices that may adversely affect the development of the payments field within the scope of the legal relationships to which payment service providers are party due to their activities subject to this Law, it is authorized to determine the procedures and principles to be followed regarding those legal relationships.
(7) (Added: 12/11/2019-7192/Art. 8) If the Bank determines that there are situations and practices that may adversely affect the development of the payments field within the scope of the activities subject to this Law, it is authorized to establish working committees on the matter, to determine the working procedures and principles of these committees by taking the views of the relevant parties, and to carry out the work and transactions necessary for implementing the decisions taken in these committees.
You can access the details of the Law at the link below:
https://www.tcmb.gov.tr/wps/wcm/connect/TR/TCMB+TR/Main+Menu/Banka+Hakkinda/Mevzuat/6493/
