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You're reading: Visa asking president to veto law on functioning of payment systems

Visa has expressed deep disappointment at the adoption of a law on the functioning of payment systems drawn up by the National Bank of Ukraine (NBU) by the Ukrainian parliament and has asked Ukrainian President Viktor Yanukovych to veto the law. 

“The law was passed without taking into account the position of industry players, who expressed serious alarm at its key clauses, and despite over 300 recommendations and amendments being drawn up by the banking and financial community,” reads a company statement issued on September 27, 2012.

The company said that the law sets non-transparent rules for the whole industry, puts great pressure on business, and considerably narrows the rights of some market players to operate in Ukraine, and thus, it hinders the further development of the sector on the basis of principles of open competition.

Visa also said that due to the absence of clear regulatory mechanisms, the endorsement of the law could hamper the development of the electronic payment industry in Ukraine by establishing a monopoly on the Ukrainian payment market de facto, which will result in negative consequences.

“Ukrainian consumers will not be able to use their payment cards in stores and restaurants or get cash from ATMs inside the country,” the company warns.

The company said that expenses on the realization of the law would be imposed on Ukraine’s banking industry, which will lead to the withdrawal of funds that could have been used for the development of innovations in the interests of consumers and business. In addition, Ukraine will create a precedent of interference by the state in the development of payment systems, and the country will violate some of its international agreements and obligations, reads the statement.

As reported, a law on functioning of payment systems passed on September 18, 2012 by the 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 bill authorizes the NBU to set limitations on settlements in cash both for individuals and companies, as well as for individual entrepreneurs.

In addition, the law regulates the issue of electronic payment tools inside Ukraine. 

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