Payment Services/Instruments

     

    What does the term payment service imply?

     

    The first paragraph of Article 13 of the Law of Georgia on Payment System and Payment Services defines the list of payment services. Payment services are:

     

    • Services that provide for the deduction of funds from the payer's account and related operations;
    • Services that ensure the transfer of funds to the recipient's account and related operations;
    • Making payment by direct debit (including one-time order), payment card or other electronic means, or credit transfer (including standing order), with the payment service user's own amount or loan;
    • Issuance and/or acquiring of payment instruments, including electronic money instruments;
    • money transfers;
    • Issuance of electronic money, payment operations through electronic money, using mobile phone, internet or other electronic means;
    • Payment operations with the consent of the payer through telecommunication, digital or information technology device towards or for the benefit of the telecommunication, information technology system or network operator acting as an intermediary between the payer and the recipient - the user and the provider of goods or services.

     

    Which services are not covered by the Law of Georgia on Payment System and Payment Services?

     

    The second paragraph of Article 13 of the Law of Georgia on Payment System and Payment Services and the Regulation on Registration and Regulation of the Payment Service Providers define the list of services to which the law does not apply:

     

    • Cash payment transaction between the payer and the recipient without intermediaries;
    • Payment transaction through a commercial intermediary between the payer and the recipient;
    • Collection services related to the transportation of banknotes and coins, including their collection, processing and delivery;
    • Cash-to-cash exchange service that is not provided through bank accounts;
    • An operation performed between system participants across the payment system;
    • Services rendered by a technical, telecommunications, digital or information technology service provider that deliver technical support for payment services and in which the transfer amount is not in the possession of that service provider. Such services entail the processing and storage of data, the protection of privacy, the authentication of data and entities, telecommunications or information technology coverage, the supply and maintenance of technical facilities for payment services;
    • Services based on a payment instrument or electronic money used only in its issuer’s points of sales and/or services;
    • A payment transaction effected by any telecommunications, digital or information technology device where the goods or services procured are delivered and to be used by the same telecommunications, digital or information technology device, provided that the telecommunications, digital or information technology service operator does not only act as an intermediary between the payment service user and the goods or service supplier;
    • Whenever a payment transaction related to securities operations is performed by a regulated securities market participant with client funds, and that includes the distribution of dividends and other income, buying and selling of securities;
    • Payments between companies across the group, made without the participation of the payment service provider;
    • Payment transaction performed by check in compliance with the Law of Georgia on Checks.
    • ATM cash service, rendered by the service provider on behalf of one or more payment card issuers and is not a party to the agreement with the customer (cash receiver) and also not perform other payment services defined by the first paragraph of Article 13 of the Law of Georgia on Payment System and Payment Services.

     

    Services executed by a point of sale/service in which cash is released by the recipient (point of sale/service) at the request of the payer upon recipient’s purchase of the goods or services. The cash amount to be paid represents part of the payment transaction amount that the payer pays to purchase the goods or services.