Turkey: New QR Code Era for Cheques in Turkey!

Last Updated: 30 June 2015
Article by Serap Zuvin and Melis Oget Koc

With the introduction of a QR Code system on June 15, 2015, a new era for cheque users started. This system is expected to provide much transparency for the cheque users in their trade and ultimately decrease the number of bounced cheques and eliminate check frauds.

The QR Code system for cheques came into scene with the cooperation of Turkish Banking Institution, Credit Reference Bureau (CRB) (Kredi Kayıt Bürosu) and Turkish Union of Chambers and Commodity Exchanges. The system basically enables the cheque holders to be able to review data on the credibility of a cheque issuer.

How Will It Work in Practice?

Cheques are irreplaceable instruments in the global commercial life. Due to its nature, the ultimate holder of a cheque does not necessarily know the identity of the  issuer of the cheque.  Therefore, it is usually not possible to know the credibility of its issuer or whether the cheque is fake or it will be bounced, etc.

Cheque bearing a QR Code can be defined as a cheque printed by banks including a QR Code indicating the name/surname of the issuer, details of the bank and the branch, the bank account number of the issuer and the cheque number. For enjoying the benefits of QR Code cheques, necessary technical settings must be maintained. The technical infrastructure for using this innovative finance tool is developed by the CRB[1], yet needless to say the cooperation of banks and integration of the banks' internal systems is essential in order for QR Code cheques to be effectively used in practice. The banks' involvement in this respect comes into scene, given that the QR Code cheques will be provided by the banks to their customers. In Turkey, Şekerbank has become the first bank that launched QR Code Cheque for the use of its customers[2].

The technical infrastructure as established by the CRB for using QR Code cheques will involve a digital platform called Findeks. Findeks is established with the cooperation of certain banks in Turkey and the CRB. Findeks enables its users to pursue their credit ratings, credit debts and limits before the financial institutions and banks and this time it will be used as the digital platform for enjoying the benefits of QR Code cheques[3].

By using Findeks application on their smart phones and being subscribed with Findeks, the cheque holders will be able to scan the QR Code on each cheque leaf.  After scanning the QR Code on the cheque leaf that they hold, cheque holders will be able to reach to the data on the accuracy and originality of the cheque and the former cheque payment performance of the issuer. 

The consent of the issuers enabling the potential cheque holders to review the summarized QR Cheque report will be given by the issuers to the bank for each separate cheque leaf, at the time of their application to the bank to receive a QR Code cheque. In other words, because a prior permission have been given for each cheque by its issuer at the outset, no further consents of the issuer will be required to be obtained for the cheque holder to review the summary cheque report via the QR Code.

What Does the Summary Cheque Report Say?

The cheque report which will be accessed through the QR Coded Cheque via Findeks application will basically provide for the date of the very first and last cheque as issued by the issuer of the cheque, ratio by % of the number and amount of the cheques which are paid by the issuer of the cheque on presentation, ratio by % of the number and amount of the cheques which are endorsed, defaulted on payment or still not paid by the issuer[4]. Accordingly, by review of such report, the cheque holder will be able to understand/determine on whether there has been any forgery made on the cheque or not.

The summary report to be provided via Findeks application will be composed of details dated after 2009 for bounced cheques, and 2007 for paid cheques by issuers. Because this report is provided by Findeks based on the data that it receives from Turkish banks for each issuer, the issuer is expected to communicate with the banks directly in order to resolve on disputes or records that such issuer disagrees or objects[5].

Is Using a QR Code Cheque Mandatory?

Absolutely not. Although the use of this new innovative tool will bring an important convenience to the trade, its use is not obligatory. Therefore, merchants may enjoy the benefits of a QR Code cheque or use regular cheques in their transactions, depending on their preference and needless to say the request of their creditor.

In any case, the expectation is that the majority of the merchants will be forced to use this newly introduced method in the future since the demand of their creditors will be as such, considering the reliability of QR Code cheques when compared to the regular ones. 

Expectations...

This newly introduced QR Code cheque system is aimed to provide transparency and give extra ease for determination of cheque fraud cases or prohibition of the same to a certain extent, if at all possible.  Needless to say QR Code cheques will not guarantee the payment of cheques by their issuers or eliminate bounced cheques completely; since the payment performance/credibility of the cheque issuers cannot ensure their future payment performances. In other words, the summary QR Code cheque reports only give an indication on the payment habits of the issuer and validity of the subject cheque. In practice, certain practitioners even claim that the QR Code cheque model is only a more straightforward version of the existing method on investigation by cheque number in digital.

Well, although QR Code cheques have officially become available as of June 15, 2015, implementation of the same in practice will still take some time due to the necessary integration period on both the banks' and the merchants' side.   In any case, the amount of cheques presented to banks for the period of January-May 2015 has increased by 11% since the corresponding period in 2014 and has reached to an amount of 247 billion Turkish Liras[6].  The number of bounced cheques has increased by 12% for the period of January-May 2015 when compared to the corresponding period in 2014[7]. Therefore, considering this high cheque traffic in domestic market, any innovative method which will reduce the risks with respect to cheques is important and thus the QR Code cheques.

What is Next?

There have been news in Turkish media recently, stating that as a follow up to the QR Code method for cheques, now letters of credits are also contemplated to be used in electronic format in the near future as part of the future prospects of the CRB.  So, we all will wait and see.


[6] http://www.riskmerkezi.org/tr-TR/istatistikiBilgiler.aspx

[7] http://www.riskmerkezi.org/tr-TR/istatistikiBilgiler.aspx

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Serap Zuvin
Melis Oget Koc
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions