The Draft Regulation Amending the Regulation on Bank Cards and Credit Cards ("Draft Regulation") was published on the website of the Banking Regulation and Supervision Agency ("BRSA") on 28/10/2022 to receive sector and public opinions.
What Is the Purpose of the Draft Regulation?
The Draft Regulation aims to promote card issuers ("Card Institutions") to obtain operating licenses in Turkey, to expand the number of card system institutions that have obtained or will obtain operating licenses in Turkey, to increase the diversity of services in the card payment ecosystem and to develop the card payment ecosystem.
What Does the Draft Regulation Bring?
With the Draft Regulation,
- Some expressions in the Regulation on Bank Cards and Credit Cards ("Regulation") regarding the operations of Card Institutions that may lead to misunderstandings have been amended, and the definition of Card Scheme has been added;
- Card Institutions are prohibited from issuing cards to be used domestically that are defined in the card scheme of a card system institution that does not have a license to be used in Turkey;
- Registration of cards to be used domestically in the card scheme of a card system institution that does not have a license to operate in Turkey is subject to the condition that the relevant card is defined in the card scheme of a card system institution that has obtained a license to operate in Turkey;
- The inclusion of a specific card scheme brand on the card is conditional upon the involvement of all card scheme brands for which the card is defined;
- An obligation was imposed on Card Institutions to inform their customers about the functions, costs, rights, and security features of all card scheme options for domestic and international use;
- Card Institutions are now obliged to approve transaction confirmation requests from POS-allocated workplaces located abroad for operations carried out by workplaces located abroad for residents in Turkey, provided such requests come only from the POS of an institution authorized to make card acceptance agreements in Turkey.
- Cards issued by Card Institutions before the effective date of the Draft Regulation are exempted from the obligations and limitations except for renewals after the effective date.
If the Draft Regulation is regulated in its current form, there will be significant changes in the Turkish card payment ecosystem, and companies will be expected to adapt to the relevant changes as soon as possible and continue their payment services and operations without slowing down.
By Serkan Pamukkale, Senior Partner, and Deniz Yontuk, Associate, Moral, Kinikoglu, Pamukkale, Kokenek