Recent Developments
Presidential Decree No. 2025/1 on the Use of Cards Issued by Local Card Schemes ("Decree"), issued by the president of the Republic of Türkiye, was published in the Official Gazette on January 16, 2025.
You can access the Decree here.
What's New?
Under the Decree, the following government offices will principally need to make the following payments through the use of cards issued by card schemes that are resident and licensed in Türkiye.
Government Offices: Public administrations and affiliated, related and associated public institutions and organizations, special provincial administrations, municipalities and their affiliated organizations, unions, institutions and enterprises established by them, state economic enterprises subject to Decree Law No. 233 dated June 8, 1984 and their subsidiaries, organizations, institutions, unions, enterprises and companies in which they hold more than half of the capital, organizations subject to private law provisions with more than half of their shares owned by the public, funds, revolving funds and all other public institutions and organizations
Payments: Personnel payments, retirement pensions, advance payments, social aid payments, scholarships and loans to students, support and incentive payments to farmers, tradespersons, etc., payments to cards such as public transportation, meals, identity and student cards, other payments subject to bank protocols and made to beneficiaries not listed above
According to the Decree, in the case of the establishment and renewal of bank protocols for the purpose of the abovementioned public payments, for bank cards and associated credit cards, as well as prepaid cards to be issued or renewed for the real or legal person to whom the payment will be made, unless otherwise requested by the user, it is essential to use cards issued by card system institutions that are resident and licensed in Türkiye, in accordance with Law No. 5464 on Bank Cards and Credit Cards.
Additionally, institutions subject to the Decree must prioritize card system projects with card system institutions that are resident and licensed in Türkiye when working with institutions authorized to issue cards.
Lastly, for bank cards, prepaid cards and credit cards to be issued or renewed by state-owned banks (even if not related to public payments), unless otherwise requested by the user, priority will be given to using the infrastructures of card system institutions that are resident and licensed in Türkiye.
Conclusion
The Decree will expand the use of the cards issued by local card schemes. We can conclude that the authorities are prioritizing the use of these cards particularly considering this legal development together with the Banking Regulatory and Supervisory Authority's draft regulation from 2022 (you can access our legal alert here). Currently, the only local card scheme is TROY of Bankalararası Kart Merkezi A.Ş.
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.
