LAW OF UKRAINE

of June 30, 2021 No. 1591-IX

About payment services

This Law determines concept and general procedure for accomplishment of payment transactions of Ukraine, establishes the exclusive list of payment services and procedure for their provision, category of payment service providers and condition of authorization of their activities, determines the general principles of functioning of payment systems in Ukraine, the general principles of release and use in Ukraine of electronic money and electronic money of the National Bank of Ukraine, establishes the rights, obligations and responsibility of participants of the payment market of Ukraine, determines general procedure of supervision of activities of payment service providers, suppliers of limited payment services, procedure of oversight of payment infrastructure.

Section I General provisions

Article 1. Determination of the main terms

1. In this Law the stated below terms are used in such value:

1) authentication - the procedure allowing the payment service provider to establish and confirm the personality of the user of payment services and/or accessory to the user of payment services of certain payment instrument, availability at it of the bases for use of the specific payment instrument including by verification of individual accounting information of the user of payment services;

2) activities authorization - the procedure of the admission determined by this Law to implementation of activities for rendering payment services, limited payment services, support services which are performed by licensing and/or inclusion in the Register of payment infrastructure;

3) clearing settlements - money transfer from accounts of payers into accounts of receivers, and also transfer by payment service providers of funds deposited by payers cash for accounts of receivers;

4) vulnerable payment data - data (their set), including individual accounting information by means of which fraudulent actions can be made;

5) value date - the date specified by the payer in the payment instruction since which the means constituting the amount of payment transaction and translated by the payer to the receiver carry over the receiver. The procedure for application of value date by payment service providers is determined by the National Bank of Ukraine. The procedure for application of value date in payment system is determined by rules of payment system according to requirements of this Law;

6) the debit translation - payment transaction which is performed from the account of the payer based on the payment instruction provided by the receiver, on condition of receipt of consent of the payer to execution of the payment transaction provided to them to the receiver, the payment service provider of the receiver or the payer or based on the payment instruction of the claimant without receipt of consent of the payer;

7) the holder of the payment instrument - physical person which on legal causes uses the payment instrument for initiation of payment transaction from the corresponding account for accomplishment of payment transactions or performs other transactions using the specified payment instrument;

8) remote payment transaction - the payment transaction performed using means of remote communication;

9) goodwill - the information provided by the National Bank of Ukraine on compliance of activities of legal entity or physical person, including heads of the legal entity and owners of essential participation in the legal entity, to requirements of the law, business practice and professional ethics, and also data on decency, professional and managerial capabilities of physical person;

9-1) access to account - possibility of obtaining by the third-party payment service provider of information amount determined by the user concerning the account and the user of the account which upon the demand of and with the consent of such user shall provide provision of services on servicing of the account for the purpose of provision by such third-party payment service provider to such user of services in initiation of payment transaction and/or on provision of data from accounts. Such opportunity is provided by interaction of information systems of the specified payment service providers;

10) acquiring of payment instruments (further - acquiring) - payment service which consists in acceptance of payment instruments of which money transfer to the receiver and/or issue of means in cash form is result;

11) acquiring organization (further - ekvayr) - the payment service provider who provides service of acquiring of payment instruments and has the license for provision of such service;

12) e-wallet - accounting record for accounting, storage of electronic money and implementation of transactions with them;

13) electronic means of payment - the payment instrument realized on any medium, containing electronically the data necessary for initiation of payment transaction and/or implementation of other transactions determined by the contract with the issuer;

14) electronic money - cost units which are stored in electronic form issued by the issuer of electronic money for accomplishment of payment transactions (including with use of prepaid payment cards of multi-purpose use) which are accepted as instrument of payment by other persons, than their issuer, and are monetary commitment of such issuer of electronic money;

15) issue of payment instruments - the payment service provided by the payment service provider on a contract basis with the payer which consists in release (provision) to the payer of the payment instrument for initiation and processing of payment transactions;

16) the issuer of electronic money - organization of electronic money or other legal entity determined by this Law who provides payment services on release of electronic money and accomplishment of payment transactions with them including opening and servicing of e-wallets, and has the right to provision of such payment service according to this Law;

17) the issuer of payment instruments (further - the issuer) - the payment service provider who provides service of issue of payment instruments and has the right to provision of such service according to this Law;

18) means of remote communication - the communication medium used in the course of the conclusion of transactions on provision of payment services (including for sending and receipt of all of documents and data necessary for this purpose) and/or initiation of payment transactions without physical presence of the payment service provider and the user;

19) considerable influence on management or activities of the legal entity - immediate and/or indirect possession by one person independently or together with other persons voting shares, share in authorized (share, share) the capital or voting power according to shares, share in authorized (share, share) the capital of the legal entity in the amount of 10 to 50 percent and/or opportunity, independent of formal ownership, which signs are established by regulatory legal acts of the National Bank of Ukraine, implementation of equivalent influence on management or activities of the legal entity;

20) individual accounting information - individualized set of information provided by the payment service provider to the user or his authorized representative for the purposes of authentication;

21) the initiator - person who on legal causes initiates payment transaction by forming and/or submissions of the corresponding payment instruction, including using the payment instrument. The payer, the receiver, the claimant, obremenitel treat initiators;

22) foreign payment organization / foreign organization of electronic money (further - foreign payment organization) - the legal entity - the nonresident which according to the legislation of the state in which it is registered has the right to provide payment services;

23) essential participation - immediate and/or indirect possession by one person independently or together with other persons 10 and more percent of the authorized capital and/or voting power, shares, shares, shares of the legal entity or possibility of considerable influence, independent of formal ownership, and/or decisive influence (control) on management or activities of the legal entity;

24) heads of the payment service provider (except bank) - sole executive body or members of collegiate executive body of the legal entity and members of the supervising, supervisory board (in the presence) the payment service provider;

25) clearing - the mechanism including collection, sorting, rekonsilyation and carrying out offset of demands in reconvention of members of payment service provider, and also calculation on each of them of total balance for certain period of time between total amounts of requirements and obligations;

26) the key member of the legal entity - any:

a) physical person which owns share in authorized (share, share) the capital (shares) of such legal entity, at the same time:

if the legal entity has more than 20 participants - physical persons, 20 participants - physical persons which shares are the greatest are considered as key members of the legal entity;

if identical by the size of share (blocks of shares) in authorized (share, share) the capital of the legal entity belong to more than 20 participants - physical persons, all physical persons which own shares (block of shares) in the amount of 2 and more percent in authorized (share, share) the capital of such legal entity are considered as key members of the legal entity;

b) the legal entity who owns share (block of shares) in the amount of 2 and more percent in authorized (share, share) the capital of such legal entity.

It is considered that the public company has no key members of the legal entity;

27) the commercial agent (agent) - the legal entity or physical person entrepreneur which acts on behalf, in interests, under control and at the expense of person who it represents, during provision of payment services based on the relevant agreement;

28) the user of payment services (further - the user) - the physical person or the legal entity who receives or has intention to receive payment service as the payer or the receiver (or both at the same time) and/or the owner of electronic money (digital money of the National Bank of Ukraine), and in case of provision of services by bank - the client of bank;

29) the credit translation - payment transaction from the account of the payer based on the payment instruction provided by the payer or the service provider on initiation of payment transactions on condition of receipt of consent of the payer to execution of the payment transaction provided to the payment service provider of the payer;

30) credit transfer - the payment instrument in the form of set of the procedures provided by regulatory legal acts of the National Bank of Ukraine which is used for initiation of the credit translation;

31) the license for provision of financial payment services (further - the license) - the license provided by the National Bank of Ukraine to the legal entity according to this Law and certifying the right of the legal entity to implementation of activities for provision of all or separate financial payment services;

32) small payment organization - payment organization which activities provide payment services with observance of the restrictions determined by this Law and regulatory legal acts of the National Bank of Ukraine;

33) routing - data exchange between members of payment service provider during accomplishment of payment transactions;

34) international standards of oversight - the documents accepted by Committee on payment systems and market infrastructure of International settlements bank and Technical committee of International Organization of Securities Commissions which determine standards of oversight for infrastructure of the financial market;

35) the irrevocability moment - certain timepoint after which approach the initiator cannot withdraw the payment instruction and the consent to accomplishment of payment transaction;

36) the payment service provider on servicing of the account - the payment service provider in whom the account of the payer for accomplishment of payment transactions is opened;

37) the payment service provider on initiation of payment transaction - the legal entity who in the procedure established by this Law and regulatory legal acts of the National Bank of Ukraine acquired the right to rendering services in initiation of payment transaction;

38) the payment service provider on provision of data from accounts - the legal entity who in the procedure established by this Law and regulatory legal acts of the National Bank of Ukraine acquired the right to rendering service in provision of data from accounts;

39) unaccepted payment transaction - the payment transaction executed by the payment service provider of the payer based on the payment instruction provided by the initiator without receipt of consent of the payer (except forced write-off (collection) or after withdrawal of such consent;

40) the non-bank payment service provider - the payment service provider, not being bank. The payment service providers provided by Items 2 - 7 parts one of article 10 of this Law treat non-bank payment service providers for the purposes of this Law;

41) without delay - the shortest possible time, but no later than the next operational day, determined by internal documents of the payment service provider and provided by the contract with the user of payment services to which shall be carried out (to occur) the corresponding actions from the moment of approach of the basis for their accomplishment;

42) inadequate payment transaction - payment transaction as a result of which because of person who is not initiator or the payment service provider write-off of funds from the account of the inadequate payer and/or transfer of funds for the account of the inadequate receiver or issue of means to it in cash form is performed;

43) the inadequate receiver - person into whose account without legal causes the amount of payment transaction is credited or which received the amount of payment transaction in cash form;

44) the inadequate payer - person off whose account means without legal causes are charged (mistakenly or illegally);

45) the inadequate claimant - person who does not have the reasons of initiation of payment transaction determined by the law from the account of the payer;

46) the indirect member of payment service provider - the member of payment service provider who provides to users services in accomplishment of payment transactions based on the agreement signed with working interest owner of payment system which is granted the right to the conclusion of such agreements by the operator of payment system;

47) obremenitel - the initiator with encumbrance which subject are property rights on the means which are on the account;

48) oversight of payment infrastructure - activities of the National Bank of Ukraine concerning ensuring continued, reliable and effective functioning of payment infrastructure which includes:

a) monitoring of payment infrastructure;

b) assessment of payment infrastructure on compliance to requirements of the legislation and to international standards of oversight;

c) establishment of requirements and restrictions concerning activities of payment infrastructure;

d) provision of recommendations about enhancement of activities of payment infrastructure and/or application of corrective actions;

49) the operator of payment system - the legal entity who establishes rules of payment system performs other functions for ensuring functioning of payment system and bears responsibility for activities of this payment system according to its rules and requirements of the legislation;

50) operational day - day during which the payment service provider of the payer or the payment service provider of the receiver involved in accomplishment of payment transaction performs the activities necessary for accomplishment of payment transactions;

51) operational time - part of operational day of the payment service provider during which payment instructions and instructions on response are accepted. Duration of operational time is established by the payment service provider independently and are fixed by its internal documents;

52) the receiver - person into whose account the amount of payment transaction is credited or which receives the amount of payment transaction in cash form;

53) money transfer without opening of the account - the payment service provided to the payer for the purpose of money transfer in cash or non-cash form to the receiver or the payment service provider who acts on behalf of the receiver during which the supplier of this service does not use the account of the payer and/or receiver opened at it;

54) the payment instruction - the order of the initiator to the payment service provider concerning accomplishment of payment transaction;

55) payment infrastructure - payment service providers, payment systems, technological operators of payment services and the relation between them during accomplishment of payment transactions;

56) payment card - electronic means of payment in the form of plastic or other type of the card;

57) payment transaction - any introduction, the translation or money withdrawal, irrespective of legal relationship between the payer and the receiver which are the basis for this purpose;

58) payment service - the activities of the payment service provider for accomplishment and/or maintenance of payment transactions provided by this Law;

59) payment system - system for accomplishment of payment transactions with the formal and standardized arrangements and general rules of processing, clearing and/or accomplishment of calculations between members of payment service provider;

60) payment institute - the legal entity (except bank, financial institution which has the right to provision of payment services of the operator of mail service, public authority, local government body) who in accordance with the established procedure acquired the right to rendering all or separate financial payment services (except payment service on release and accomplishment of payment transactions with electronic money);

61) the payment application - the software placed in the hardware-software circle of electronic means of payment by means of which the payment and other transactions provided by the agreement are performed;

62) the payment application - the software which gives the chance to the user to initiate payment transaction from the account of the payer (including by means of payment instruments) and/or to make other transactions provided by the contract with the payment service provider;

63) the payment instrument - the personalized means, the device and/or set of the procedures meeting the requirements of the legislation and approved by the user and the payment service provider for provision of the payment instruction;

64) payment monitoring - obligatory activities of suppliers of financial payment services and control of payment transactions for the purpose of identification and prevention to inadequate payment transactions;

65) the payment device - the technical device (the automatic teller, the payment terminal, self-service software and hardware complex, the hardware-software circle for the mobile phone, other device) which gives the chance to the user to initiate payment transaction, and also to execute other transactions according to functionality of this device;

66) the payment account - the account opened by the non-bank payment service provider for the user on contractual basis only for the purposes of execution of payment transactions in accordance with the terms of the agreement and requirements of the legislation;

67) the payment market - set of participants of the payment market and legal relationship between them concerning provision of payment services;

68) the payer - person from whose account payment transaction based on the payment instruction is initiated or which initiates payment transaction by giving/forming of the payment instruction together with the corresponding cash amount;

69) wrong payment transaction - payment transaction as a result of which because of the payment service provider write-off of funds from the account of the inadequate payer and/or transfer of funds for the account of the inadequate receiver or issue of means to it in cash form is performed;

70) the strengthened authentication - the procedure of check of authenticity which assumes use of two or more data sets belonging to such categories:

a) knowledge (possession of information (data), only to the famous user);

b) ownership (application of physical item which only the user has);

c) typicalness (verification of biometric data or other properties (qualities, characteristics) inherent only to the user, distinguishing him from other users);

71) service of initiation of payment transaction - the non-financial payment service consisting in initiation of the payment instruction by the supplier of service in initiation of payment transaction on the payer's request from the account of the payer opened in other payment service provider;

72) service in provision of data from accounts - non-financial the payment service consisting in provision in real time of the consolidated information from one or several accounts opened addressed to the user in one or more payment service providers;

73) forced write-off (collection) - the payment transaction from the account of the payer performed by the claimant without the consent of the payer based on the executive document established by the law in cases, stipulated by the legislation or based on the judgment which took legal effect, or decisions of the head of body of collection (his deputy or the authorized person) in the cases provided by the Tax code of Ukraine;

74) processing - the activities including any of the following: accomplishment on payment transactions of authorization, monitoring, collection, processing and storage of information, provision of the processed information to participants of calculations;

75) processing organization - the legal entity performing processing;

76) direct debit - the payment instrument used for initiation of payment transaction of the debit translation;

77) working interest owner of payment system - the member of payment service provider who provides services to users on accomplishment of payment transactions based on the agreement signed with the operator of payment system;

78) prudential standard rates - quantitative indices which respect for certain value is obligatory for payment service providers who are established by the National Bank of Ukraine for the purpose of assessment of financial condition of payment service providers and identification of potential risks in their activities, minimization of such risks and timely response to possible negative consequences of activities of such persons;

79) the Register of payment infrastructure (further - the Register) - the electronic register which is kept by the National Bank of Ukraine by means of the corresponding complex of organizational technical means in which the information about payment service providers and other persons, data on whom are subject to inclusion in the Register according to this Law, is specified;

80) rekonsilyation - control procedure which consists in identification and check of accomplishment of each payment transaction by means of, at least, three certain indicators;

81) clearing bank - the bank authorized by the operator of the relevant payment service provider participating in carrying out calculations in payment system;

82) the consumer - the physical person which receives or has intention to receive payment service for satisfaction of the personal needs which are not connected with business, independent professional activity;

83) structure of property - documentary confirmed system of relations of physical persons and legal entities, trusts, other similar legal educations which allows to determine:

a) key members of the legal entity;

b) key members of each legal entity in chain of ownership of corporate laws of such legal entity;

c) all persons who directly and/or indirectly are owners of essential participation in such legal entity;

d) relations between all persons specified in subitems "a", "b", "v" and also between such persons and the supplier of financial services;

84) the claimant - person who can be the initiator of payment transaction of forced write-off (collection) from the account of the payer for accomplishment of payment transactions based on the executive documents determined by the law or based on the judgment which took legal effect, or decisions of the head of body of collection (his deputy or the authorized person) according to the Tax code of Ukraine;

85) subjects of payment transactions are users (payers, receivers) and the corresponding payment service providers;

86) the amount of payment transaction - the corresponding amount of means which as a result of accomplishment of payment transaction shall be enlisted into the account of the receiver or is issued to the receiver in cash form;

87) the scheme of accomplishment of payment transactions - single set of rules, standards and/or procedures which are developed and are used for accomplishment of payment transactions (including in payment system) and determine the procedure for initiation, accomplishment and completion of payment transactions, payment instruments used for accomplishment of payment transactions, procedure for their issue and acquiring;

88) the technological operator of payment services (further - the technical operator) - the legal entity who provides services of processing of clearing or performs the operational, information and other technological functions connected with provision of payment services without attraction of financial resources on payment transactions into the account;

89) the dealer - the subject of managing (the legal entity or physical person performing business activity, independent professional activity) who according to the contract with the payment service provider (ekvayry or to others) accepts to servicing payment instruments for payment of cost of goods or services, including services in issue of means in cash form;

90) the unique identifier - combination of letters, figures, symbols or signs which is provided to the user by the payment service provider and the allowing to identify unambiguously the user and/or his account for the purposes of accomplishment of payment transaction;

91) organization of electronic money - the legal entity who based on the obtained license entered the right to rendering payment service on release and accomplishment of payment transactions with electronic money;

92) the member of payment service provider - the legal entity who based on the contribution agreement in payment system provides to users services in accomplishment of payment transactions by means of this system and according to the legislation has the right to provide such services;

93) participants of the payment market are subjects of payment transactions (their commercial agents), suppliers of limited payment services, payment systems (operators of payment systems) and technological operators;

94) the financial institution having the right to provision of payment services - the non-bank financial institution which has no status of payment organization or organization of electronic money and according to the procedure, determined by the law has the right to provide separate financial payment services;

95) digital content - the goods or services created and delivered (provided) exclusively in electronic form, and consumed with use technical (digital, electronic) devices also do not provide use or consumption of physical goods or services;

96) digital money of the National Bank of Ukraine (further - digital money) - electronic form of monetary unit of Ukraine which issuer is the National Bank of Ukraine.

2. The terms "controller", "chain of ownership of corporate laws", "public company" are used in this Law in the values given in the Law of Ukraine "About banks and banking activity".

The terms "subscriber", "electronic communication service", "supplier of electronic communication services" are used in this Law in the values given in the Law of Ukraine "About electronic communications".

The term "operator of mail service" is used in this Law in the value given in the Law of Ukraine "About mail service".

The terms "control (decisive influence)", "corporate management", "professional judgment" are used in this Law in the values given in the Law of Ukraine "About financial services and finance companies".

The terms "resident", "nonresident" are used in this Law in the values given in the Law of Ukraine "About currency and currency transactions".

The term "cyberthreat" is used in this Law in the value given in the Law of Ukraine "About the basic principles of ensuring cyber security of Ukraine".

The paragraph of the seventh part two of Article 1 is excluded according to the Law of Ukraine of 13.12.2022 No. 2849-IX

Other terms in this Law, are used in the values given in the relevant acts of the legislation.

Article 2. The legislation regulating activities in the payment market

1. The general principles of functioning of the payment market, the relations in the sphere of provision of payment services to users are governed by the Constitution of Ukraine, this Law, other laws of Ukraine and regulatory legal acts adopted on their basis.

2. During rendering services to consumers in the payment market payment service providers shall observe requirements of the laws of Ukraine "About financial services and finance companies", "About consumer protection" and other regulatory legal acts in the sphere of consumer protection.

3. In case of contradiction of regulations of this Law to regulations of other laws of regulation of this Law have advantage.

4. In case of introduction of measures of protection by the National Bank of Ukraine according to the Law of Ukraine "About currency and currency transactions" regulations of this Law are applied during payment transactions, provision of financial payment services taking into account such measures of protection.

Article 3. Money (money) in Ukraine

1. Money (money) exists in Ukraine in cash (form of bank notes) and non-cash (form of records on accounts) forms.

2. Money (money) for the purposes of this Law includes also electronic money and digital money in the cases provided by this Law.

Electronic money and digital money exist only in non-cash form.

3. Bank notes are issued in the form of the banknotes and coins having the nominal value specified them.

4. The hryvnia as monetary unit of Ukraine is legal means of payment in Ukraine, is accepted by all physical persons and legal entities without any limit in all territory of Ukraine for carrying out payment transactions and calculations.

5. The electronic money nominated in hryvnia and digital money are used by physical persons and legal entities for carrying out payment transactions and calculations only in the cases provided by the laws of Ukraine and/or regulatory legal acts of the National Bank of Ukraine.

Article 4. The forms of calculations applied when carrying out payment transactions

1. For carrying out payment transactions means in cash or non-cash form are used.

2. Features of implementation of calculations for currency transactions are determined by the foreign exchange legislation.

Section II Payment services

Article 5. Types of payment services

1. The following services belong to financial payment services:

1) services in transfer of cash into accounts of users, and also all services in opening, servicing and closing of accounts (except e-wallets);

2) services in cash withdrawal from accounts of users, and also all services in opening, servicing and closing of accounts (except e-wallets);

3) services in accomplishment of payment transactions with own funds of the user from the account / into the account of the user (except payment transactions with electronic money), including:

a) execution of the credit translation;

b) accomplishment of the debit translation;

c) accomplishment of other payment transaction, including with use of payment instruments;

4) services in accomplishment of payment transactions from the account / into the account of the user (except payment transactions with electronic money) provided that means for accomplishment of payment transaction are provided to the user by the payment service provider on terms of credit, including:

a) execution of the credit translation;

b) accomplishment of the debit translation;

c) accomplishment of other payment transaction, including with use of payment instruments;

5) services in issue of payment instruments and/or implementation of acquiring of payment instruments;

6) services in money transfer without opening of the account;

7) services in release of electronic money and accomplishment of payment transactions with them, including opening and servicing of e-wallets.

2. Treat non-financial payment services:

1) services in initiation of payment transaction;

2) services in provision of data from accounts.

Article 6. Rules of combination

1. Combination by payment organizations and organizations of electronic money of activities for provision of financial payment services with any other types of activity is forbidden, except:

1) rendering the services which are auxiliary to payment services;

2) No. 2888-IX is excluded according to the Law of Ukraine of 12.01.2023

3) rendering services in trade in currency values for accomplishment of payment transactions taking into account the requirements established by the foreign exchange legislation;

4) provisions of other financial services in the cases provided by the law and regulatory legal acts of the National Bank of Ukraine;

5) implementation of other types of activity provided by regulatory legal acts of the National Bank of Ukraine.

The restrictions set by this part do not extend to the National Bank of Ukraine, public authorities, local government bodies and operators of mail service.

2. Banks, payment organizations, organizations of electronic money, and also branches of foreign payment organizations and branches of foreign organizations of electronic money (further - branches of foreign payment organizations) have exclusive right to combination of activities for provision of financial payment services with activities for rendering non-financial payment services.

3. Activities for provision of non-financial payment services can be combined with any other types of activity (except activities for provision of financial services) if other is not stipulated by the legislation.

4. Payment service providers (except banks) are forbidden to perform activities for attraction of financial assets with the obligation concerning subsequent their return, except the cases determined by legal acts of Ukraine and regulatory legal acts of the National Bank of Ukraine.

Article 7. The services which are auxiliary to payment services

1. Except rendering payment services, payment organizations, banks, operators of mail service, organization of electronic money, branches of foreign payment organizations have the right to render the services which are auxiliary to payment services:

1) services, stipulated in Item 8 parts one of article 9 of this Law;

2) services of the operator of payment system;

3) services of the technological operator;

4) other services determined as auxiliary to rendering payment services according to the legislation.

Article 8. Limited payment services

1. Treat limited payment services:

1) the services provided by persons who obtained the license for provision to banks of services in collection on transfer of the collected funds for own account and their further transfer to subjects of managing on their current accounts on details and in time, the legislations determined by conditions of agreements taking into account requirements;

2) services in accomplishment of the payment transactions provided by the supplier of electronic communication services, provider of audiovisual services to the subscriber - to the receiver of services for:

a) payments of digital content;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info