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:


    • a service that ensures debiting of funds from the payer's account and operations related to its execution;
    • a service that ensures crediting of funds to the payee's account and the operations related to its execution;
    • payment execution by direct debit (including through one-off order), payment card or other electronic means, or credit transfer (including standing order), within the amount of the payment service user's own funds or credit resource/line;
    • issuance and/or acquiring of payment instruments, including electronic money instruments;
    • money remittances;
    • issuance of electronic money, execution of payment transactions with electronic money, through using mobile phone, internet or other electronic means;
    • payment initiation services;
    • account information service.


    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:


    • a cash payment transaction without an intermediary between the payer and the payee;
    • a payment transaction made through a commercial intermediary between the payer and the payee;
    • cash collection services related to the transportation of banknotes and coins, including their collection, processing, and delivery;
    • cash exchange service, which is not provided through payment accounts;
    • an operation performed between system participants within the payment system;
    • services provided by a technical, telecommunication, digital, or information technology service provider, which renders technical support for the provision of payment services and in which case the funds to be transferred does not fall into the possession of this service provider; Such services include the processing and storage of data, the protection of confidentiality, the authentication of data and entities, the provision of telecommunication or information technologies, provision of and servicing/maintenance of technical facilities intended for payment services; The exception defined by this subsection does not include the services set out in subsections "g" and "h" of paragraph 1 of this article;
    • a payment transaction which is carried out by an electronic communications network operator or service provider, in addition to its electronic communications services for its network or service subscriber, and where all of the following provisions are met:
      • the payment transaction is executed for the purchase of digital content/information or voice services (regardless of the device used for the purchase or consumption of the digital content/information) or the payment transaction is carried out from an electronic device or through it for charity purposes or ticket purchases and fees of the latter are deducted from the abonent balance/limit of the respective subscriber t, held with the electronic communication network operator or service provider;
      • value of any single payment transaction does not exceed GEL 50;
      • the cumulative value of payment transactions for an individual subscriber does not exceed GEL 300 per month, including the case when the subscriber pre-funds its account with the provider of the electronic communications network or service;
    • payment transaction, which is related to the execution of securities transactions by the regulated participant of the securities market with the funds of the clients, including the distribution of dividends and other income, the purchase and sale of securities;
    • payments between companies of a group, which are made without the participation of the payment service provider;
    • payment transaction, which includes the cash collection and cash delivery within the framework of activities that shall not be classified as an economic activities in accordance with the Tax Code of Georgia;
    • service provided by a merchant, during which cash is provided by the merchant at the request of the payer upon purchase of goods or services from the payee, and provided cash is a part of the amount of the payment transaction made by the payer for the purchase of goods or services;
    • cash withdrawal services offered by means of ATM by a service provider acting on behalf of one or more card issuers, and which is not a party to the framework contract with the user (cash receiver) withdrawing money from a payment account, on condition that these provider does not conduct other payment services as referred to in paragraph 1 of this Article;
    • a payment transaction carried out by check in accordance with the Law of Georgia on Checks.