LAW OF OBLIGATION ACT, PART 8, CHAPTER 40, DIVISION 2, SUBDIVISION 4

Subdivision 4

Obligations Related to Payment Instruments and Specifications for Low Value Payment Instruments and E-money

[RT I 2010, 2, 3 – entry into force 22.01.2010]

  • 73310. Obligations related to holding of payment instrument

The holder of a payment instrument shall:

1) use the payment instrument in accordance with the conditions governing the issue and use thereof, which includes taking, as from receipt of the payment instrument, all reasonable steps to keep the payment instrument and the means which enable it to be used, including personalised security features, safe;

2) notify promptly the payment service provider that has issued the payment instrument, or a third party designated by the payment service provider for this purpose, of loss or theft of the payment instrument and of unauthorised or incorrect use of the payment instrument after becoming aware thereof.

[RT I 2010, 2, 3 – entry into force 22.01.2010]

  • 73311. Obligations related to issue of payment instrument

(1) A payment service provider that has issued a payment instrument shall:

1) ensure that only the client entitled to use the payment instrument has access to personalised security features of the payment instrument, considering also the obligations in relation to the holder of the payment instrument provided for in § 73310 of this Act;

2) refrain from sending a payment instrument to its user without the user having required it, except if an existing payment instrument is being replaced;

3) ensure technical means to the user of a payment instrument for giving a notice in accordance with the provisions of clause 73310 2) of this Act and for filing a request for unblocking provided for in subsection (5) of this section;

4) at the request of a client of the payment service provider, provide the client with necessary means enabling the client to prove the performance of the obligations provided for in clause 3) of this subsection for 18 months from performance of the obligation;

5) prevent the use of a payment instrument after receipt of the notice specified in clause 73310 2) of this Act.

(2) A payer and a payment service provider of the payer may agree on the limits of transactions to be made through the payment instrument.

(3) If agreed in the payment service contract, the payment service provider has the right to block the payment instrument for objectively justified reasons related to the security of the payment instrument or if use of the payment instrument without the payer’s consent or its fraudulent use is suspected or, in the case of a payment instrument with a credit line, there is a significantly increased risk that the payer may lack funds to fulfil the liability to pay.

(4) In the case provided for in subsection (3) of this section the payment service provider shall, if possible, notify the payer of blocking the payment instrument and its reasons in the manner agreed on in the contract, if possible, before blocking the payment instrument or promptly after blocking the payment instrument. The requirement provided for in this subsection need not be complied with if giving such information would compromise objectively justified security reasons or if it is not permitted due to other reasons provided by law.

(5) A payment service provider shall unblock the payment instrument or replace it with a new payment instrument once the reasons for blocking no longer exist.

(6) The risk of sending a payment instrument or any personalised security features to the payer shall be borne by the payment service provider.

[RT I 2010, 2, 3 – entry into force 22.01.2010]

  • 73312. Specifications for low value payment instruments and e-money

(1) A payment service contract may include an obligation to issue a low value payment instrument to the client of the payment service provider. Low value payment instrument means an instrument which meets at least one of the following conditions:

1) the value of single payment transactions made through its use does not exceed 30 euros;

2) the limit for its use is up to 150 euros;

3) the amount kept on it never exceeds an amount equalling 150 euros.

(2) The parties may agree with regard to the payment instrument specified in subsection (1) that:

1) the provisions of subsections 711 (1) to (3) and (5) and 727 (1) of this Act do not apply and the payment service provider shall provide its client only with a general description and information concerning the provided payment services, including the manner of use of the means of payment, a description of liability, fees and other significant information as well as a reference as to how the information and conditions specified in subsection 711 (1) of this Act can be accessed;

2) a payment service provider is not required to give notice of amendments to the payment service contract in the procedure provided for in § 7191 of this Act;

3) the provisions of subsections 727 (2) to (4) of this Act do not apply and the payment service provider shall, after execution of a payment order, provide or make available to the client only a reference on the basis of which the client can ascertain the payment transaction, the paid amount and the fees payable for the execution of the payment transaction per each payment or a set of payments;

4) a payment service provider shall not have the obligation to provide information or make it available as specified in clause 3) of this subsection if the user of the payment instrument cannot be ascertained or if the payment service provider lacks technical capabilities to make such information available. A payment service provider shall provide the client of the payment service provider with a possibility to verify the amount of funds stored in the payment instrument;

5) subsections 7338 (3) and (4) and clauses 73310 2), 73311 (1) 4) and 5) of this Act do not apply if the low value payment instrument cannot be blocked or if its further use cannot be restricted;

6) §§ 7332 and 7334 and subsections 7338 (1) and (2) of this Act do not apply if the use of a low value payment instrument cannot be attributed to any client of the payment service provider or if the payment service provider cannot ascertain the authorisation of the use of the payment instrument due to another reason related to the low value payment instrument;

7) a payment service provider is not required to give a notice of refusal to execute a payment order in the procedure provided for in subsections 7243 (1) to (3) of this Act if, considering the circumstances, it is unreasonable to expect the payment service provider to give a notice;

8) a payer cannot withdraw a payment order whereby it has given consent to a payment or it has given consent for a payee to make payment, differently from § 726 of this Act;

9) a payment transaction is executed within a different term than designated in § 728 of this Act.

(3) The provisions of §§ 7332 and 7338 of this Act do not apply to e-money if the payment service provider of the payer cannot block the payment account or the low value payment instrument.

[RT I 2010, 2, 3 – entry into force 22.01.2010]

(4) The parties may agree that the provisions of subsection (2) of this section are applied to e-money.

[RT I, 08.07.2011, 6 – entry into force 18.07.2011]

Disclaimer:

The information contains in this web-site is prepared for educational purpose. This site may be used by the students, faculties, independent learners and the learned advocates of all over the world. Researchers all over the world have the access to upload their writes up in this site. In consideration of the people’s participation in the Web Page, the individual, group, organization, business, spectator, or other, does hereby release and forever discharge the Lawyers & Jurists, and its officers, board, and employees, jointly and severally from any and all actions, causes of actions, claims and demands for, upon or by reason of any damage, loss or injury, which hereafter may be sustained by participating their work in the Web Page. This release extends and applies to, and also covers and includes, all unknown, unforeseen, unanticipated and unsuspected injuries, damages, loss and liability and the consequences thereof, as well as those now disclosed and known to exist.  The provisions of any state’s law providing substance that releases shall not extend to claims, demands, injuries, or damages which are known or unsuspected to exist at this time, to the person executing such release, are hereby expressly waived. However the Lawyers & Jurists makes no warranty expressed or implied or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product process or service by trade name, trade mark, manufacturer or otherwise, does not necessarily constitute or imply its endorsement, recommendation or favouring by the Lawyers & Jurists. The views and opinions of the authors expressed in the Web site do not necessarily state or reflect those of the Lawyers & Jurists. Above all, if there is any complaint drop by any independent user to the admin for any contents of this site, the Lawyers & Jurists would remove this immediately from its site.