Bank Cards and Credit Cards Law

BANK CARDS AND CREDIT CARDS LAW*

Law No. : 5464

Date of Enactment : 23.2.2006

Official Gazette : March 1, 2006 and no. 26095

Purpose

Article 1: The purpose of this Law is to ensure efficient and effective functioning

of the card payments system by setting down the principles and procedures

applicable to the issuance, use, clearing and settlement of bank cards and credit

cards.

Scope

Article 2: Organizations and entities which establish a card system, issue cards

and enter into merchant agreements, as well as merchants and card holders are

subject to and governed by the provisions of this Law.

The persons or entities which issue cards or establish a system for forward sales of

goods or services and for tracing of accounts payable and accounts receivable

solely within their own workplace, or the persons or entities which issue cards up

to a certain predetermined amount or level without any crediting transaction or

without being subject to any account, will be excluded from the provisions of this

Law.

Definitions

Article 3: For the purposes of this Law:

(a) "Board" refers to the Banking Regulation and Supervision Board;

(b) "Agency" refers to the Banking Regulation and Supervision Agency;

(c) "Bank" refers to deposit banks and participation banks and development

and investment banks;

(d) "Bank card" refers to a card enabling its holder to have access to the

banking services, including use of deposit accounts or special current

accounts;

(e) "Credit card" refers to a printed card or only a card number without any

physical existence which enables its holder to purchase goods or services

without using cash or to withdraw cash funds;

* This translation has no legal value.

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(f) "Card system organization" refers to an organization which establishes a

bank card or credit card system and grants authorization to issue cards or

enter into merchant agreements according to the said system;

(g) "Card issuing organization" refers to banks and other organizations

authorized to issue bank cards or credit cards;

(h) "Organizations entering into merchant agreements" refers to the banks

or institutions which enter into agreements with merchants so as to ensure

acceptance of bank card or credit card by them;

(i) "Merchant" refers to a person or entity who agrees and accepts to sell

goods and services or to provide cash to the card holder within the

framework of agreement signed with the organizations entering into

merchant agreements;

(j) "Card holder" refers to a person or entity who makes use of the bank card

or credit card services;

(k) "Expenditure document" refers to a document issued by the merchant

with respect to the transactions effected by using a bank card or credit

card, showing the debt of the card holder arising out of the transaction, and

other required information, and signed by the card holder except for the

cases where the identity of the card holder is determined by a code

number, a cipher or any other identification method;

(l) "Cash payment document" refers to a document issued by banks or

authorized merchants for cash payments to the bank card or credit card

holder, and signed by the card holder except for the cases where the

identity of the card holder is determined by a code number, a cipher or any

other identification method;

(m) "Last payment date" refers to the last day up to when the card holder is

expected to pay his debts of the period or the minimum amount required to

be paid by him so as not to fall in default;

(n) "Debts of the period" refers to the total sum of the balance of payables

and receivables recorded until the account cutoff date and of the balance of

the previous account statement;

(o) "Minimum amount" refers to the minimum amount of the debts of the

period required to be paid;

(p) "Crediting document" refers to a document issued by the merchant for

the amount to be credited to the account of the card holder in the case of

return of the goods or rescission of the services purchased by using a bank

card or credit card, or in the case of cancellation of the underlying

transaction;

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(r) "Notices, requests, complaints and objections" refers