President of Ukraine signed the Law on functioning of payment systems
Ukrainian President has signed the law on the functioning of payment systems despite the protests of the Visa international payment service provider.
"Ukrainian President Viktor Yanukovych has signed law No. 5284-VI on amendments to some Ukrainian legislative acts on the functioning of payment systems and development of non-cash accounts," the president's press service reported.
As reported, Visa has expressed deep disappointment at the adoption of a law on the functioning of payment systems (No. 10656) and has asked Ukrainian President Viktor Yanukovych to veto the law.
Visa said the adoption of the law would hinder the development of electronic payment industry in Ukraine due to the establishment of monopoly on the Ukrainian payment market.
Visa also said that Ukrainian consumers would not be able to use their payment cards in stores and restaurants or get cash from ATMs inside the country.
The law on the functioning of payment systems approved on September 18, 2012 by parliament gives the right to the NBU to define the procedure for clearing and making cross payments between payment systems participating in transactions in Ukraine using payment cards issued by Ukrainian banks.
The Ukrainian Interbank Payment Systems Member Association (EMA) believes that the law should be revised. According to a letter of the association to the deputy governor of the National Bank of Ukraine (NBU), the realization of the law is leading to an increase in the cost of services for clients by 1.2 times due to the foreseen transfer to tariffs in hryvnias in Ukraine. The requirement is leading to the fact that value added tax (VAT) will be added to expenses of banks in paying for services of payment systems.
Moreover, according to the EMA, after the adoption of the law, the pin-codes of payment cards, non-permanent (for example SMS) passwords for online-banking systems and other non-digital e-signatures, will no longer be acceptable and legitimate means of client identification.