In Turkey, principles and details as to the authorization and
operations of payment institutions and electronic money
institutions are covered by the Regulation on Payment Services and
Electronic Money Issuance and Payment Institutions
("Regulation") introduced by the Banking Regulation and
Supervision Agency ("BRSA").
On December 26th 2015, the Regulation Amending the Regulation on
Payment Services and Electronic Money Issuance and Payment
Organizations and Electronic Money Organizations ("Amendment
Regulation") has been published on the Official Gazette. The
Amendment Regulation has amended a total of 12 articles in the
Regulation, most of which pertain to one-off payment transactions
and frame contracts.
The definition of "invoice payment" in Article 3 of
the Regulation has been amended. With the amendment made in Article
3, taxes, fees, social security support contributions and penalties
due to these payments are removed from the definition of
A sub clause has been inserted to Article 5 of the Regulation
titled "payment services", specifying that sub clause 6
of Article 5 will not be applied in cases where
institutions outsourcing from banks for provision of invoice
payment services are clearly authorized through an agreement
between the bank and the invoicing authority, for collecting
payments on behalf of such invoicing authority.
Article 8 (2) of the Regulation, listing the documents required
for license application to be made by companies having banks or
financial institutions established abroad as shareholders directly
or indirectly holding more than 10 % of the shares and as managing
shareholders, has been amended.
In this respect, the companies fulfilling the foregoing
qualifications will no longer be obliged to submit (i) activity
schedule and business plan prepared in accordance with Article 8
(1) (b), (ii) power of attorney copies for shareholder
representatives, if any and (iii) information listed in Article 18,
related to the board members and the general manager.
Board of Director's authority to determine the conditions
for deputy general manager's attendance to board meetings in
the absence of general manager, is removed from Article 16 (1) of
the Regulation. Same as before, the board will have to be
constituted of at least 3 members and the general manager is a
natural member of the BoD.
Article 5 of the Amendment Regulation amends Article 24 (2) of
the Regulation, on the calculation of shareholders equity for
companies holding shares in banks or financial institutions.
With the amendment made in Article 29 of the Regulation, the
requirement as to the form of contracts to be
executed for one-off payment transactions has been removed and a
wording allowing one-off payment transactions to be conducted
through a receipt or similar documents instead of contracts, has
been added. Also, through the amendment, the contracts for one-off
transactions will have to include the customer's consent and a
copy of the text including the consent of the user is sought for
one-off payment transactions made remotely.
Article 30 of the Regulation governing the pre-information
requirement of users by payment service providers, has also been
amended. Accordingly, payment service providers are obliged to
publish in their workplaces, in a visible manner, maximum period
for the transaction to be completed, total service fees and if any,
exchange rates to be implemented.
Certain cosmetic changes have been made on Article 31 governing
the information to be placed on contracts, receipts or similar
documents to be issued for one-off payment transactions, in a
manner to be consistent with the changes made in Article 30.
With the amendment made in Article 57, in frame contracts
between payment service users which are consumers and the payment
service providers, parties will be allowed to decide on not
implementing the rule under sub clause (g) of Article 35 (9) or on implementing such rule in a
Lastly, provision excluding one-off payment transactions from
the obligation to execute a contract in case the payment
transaction falls under TL 300 or limit of the payment instrument
is or under TL 500 or the fund amount of the payment instrument at
any time do not exceed TL 500, has been removed from Article
III Last Note
According to Article 13, the Amendment Regulation has entered
into force on the publication date. Therefore all of the foregoing
amendments became effective as of December 26th 2015.
 In services for invoice payment
mediations, Article 5 (6) of the Regulation obliges payment and
electronic money institutions to execute contracts with invoicing
 e.g. requirement as to
the font size of at least 12.
 i.e. inclusion of
breakdown of the service fee into the frame contract.
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.
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