Harmonisation with EU Regulations
“The National Bank of Serbia has invested significant efforts to harmonise national regulations in the field of payment systems with those of the EU. As a result of these efforts, on 18 December 2014 the National Assembly of the Republic of Serbia adopted the new Law on Payment Services. The Law introduces significant improvements to the existing system, modernises it and aligns it with the directives of the European Union (Directive 2007/64/EC on payment services in the internal market, Directive 98/26/EC on settlement finality in payment and securities settlement systems and Directive 2009/110/EC on the taking up, pursuit and prudential supervision of the business of electronic money institutions), creating a harmonised, modern and comprehensive set of rules for the provision of payment services at EU level. The most notable improvements are as follows:
- The Law creates the legal basis for increasing competition in the payment services market. As a rule, greater competition means higher quality services and more favourable prices.
- The Law also creates the legal basis for the establishment and operation of electronic money institutions and payment institutions.
- All types of payment services, including cutting-edge services, have been allowed for and regulated for the first time. Electronic money has been introduced and its issuance regulated.
- Furthermore, all payment service providers are now obliged to execute dinar payment transactions in the country within the same business day.
- In addition, the Law stipulates in detail the information that a payment service user must receive from a payment service provider.
- Namely, a payment service provider must submit to the natural person user, at the user’s request and free-of-charge, the statement of executed payment transactions on paper, once a month.
- In case of a dispute between a payment service user and provider, the burden of proof lies with the provider who must prove that it submitted to the user all statutory information and executed the transaction in accordance with the user’s request.
- Under the new Law, the credit/debit value date (as the moment from which interest on funds debited or credited on the payment account is calculated) may differ from the time of debiting/crediting funds in the payment account, only if this is more favourable for a payment service user.
- A payee (e.g. a trader) may offer a discount for the use of a payment card or other payment instrument.
- A payment service user must take all reasonable and adequate measures to protect personalised security features of a payment instrument. At the same time, a user must use a payment instrument in accordance with the prescribed and agreed conditions, and must notify the payment service provider of the loss, theft or misuse of a payment instrument, immediately upon becoming aware of such event.
- A payer is entitled to a refund in the case of an unauthorised or incorrectly executed payment transaction, and in the case of an authorised payment transaction where the amount is not exactly determined (e.g. payment of utilities services through direct debit), if the transaction amount exceeds the amount the payer could have reasonably expected.
- Further, the Law stipulates the assumption of liability of the payment service provider for a loss arising from the misuse of payment instruments, except where a payment service user is proven responsible (each loss above RSD 15,000).
- Besides, the Law also regulates payment systems as part of the financial infrastructure, enabling mutual connections among payment service providers for the purpose of the timely execution of payment transactions of their clients.
- Moreover, the supervision function is widened and enhanced – the NBS will supervise all payment service providers and electronic money issuers, in relation to the provision of payment services and issue of electronic money. The NBS will also supervise payment service operators.”