Regulatory Alerts2023-01-01
Instructions No. (8) of 2023 Regarding the Issuance of QR Codes
The Palestine Monetary Authority issued Instructions No. 8 of 2023 to regulate the issuance and use of QR codes by payment service providers under unified technical standards. The Instructions mandate that issuing members provide automatic, instant QR code issuance without charging fees, while ensuring data protection and risk management. Furthermore, the regulations cover static and dynamic QR codes for electronic payments, cash transactions, and paper check issuance, applying to all members within sixty days of publication.
Palestine Monetary Authority PALESTINE MONETARY AUTHORITY
Instructions No. (8) of 2023 Regarding the Issuance of QR Codes
Pursuant to the provisions of Law No. (41) of 2022 concerning National Payments, particularly Articles (7 and 18) thereof, and based on what was approved by the Board of Directors of the Palestine Monetary Authority in its meeting No. (262) dated 14/06/2023, and in accordance with the powers delegated to us, and in pursuit of the public interest, we have issued the following Instructions:
Article (1) Definitions
The words and phrases appearing in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:
- QR Code: A technology used to store data visually in two dimensions in an efficient format that is machine-readable.
- Payment Service Provider: All banks and payment service companies.
- Issuing Member: A payment service provider that issues QR codes to its customers.
Article (2) Objective and Scope of Application
- The provisions of these Instructions aim to regulate the issuance of QR codes within unified specifications and standards for the purpose of accepting them in electronic payment transactions and issuing paper checks.
- The provisions of these Instructions apply to all Issuing Members.
Article (3) Obligations of the Issuing Member
- The Issuing Member shall comply with the following: a. Providing the environment and infrastructure to issue QR codes automatically and instantly upon request, and maintaining their continuity and availability. b. Adopting specific operating procedures for issuing QR codes and providing them to customers. c. Providing the necessary mechanisms to ensure the protection of data and information of issued QR codes. d. Taking all necessary procedures and measures to manage the various risks arising from the issuance and use of QR codes in electronic payment transactions.
- The Issuing Member is prohibited from collecting any commissions or fees from customers for issuing QR codes.
Article (4) Unified Technical Specifications and Standards
The Issuing Member shall comply with the unified technical specifications and standards for issuing QR codes as stipulated in Annex No. (1) to these Instructions.
Article (5) Types of QR Codes
The Issuing Member shall comply with issuing the following types of QR codes according to customer request:
- Static QR Code.
- Dynamic QR Code.
Article (6) Use Cases
- A payment service provider that offers its customers the services listed below shall provide them with the ability to use QR codes, provided compliance with the technical specifications stipulated in Annex No. (2): a. Electronic payment or transfer. b. Cash withdrawal. c. Cash deposit. d. Issuing paper checks.
- The Issuing Member may use QR codes in cases other than those listed in paragraph (1) of this Article, subject to obtaining prior approval from the Palestine Monetary Authority.
Article (7) Exemptions
The provisions of these Instructions exempt all check papers containing QR codes issued by banks prior to the effective date of these Instructions.
Article (8) Implementation and Enforcement
All competent authorities shall implement the provisions of these Instructions within their respective jurisdictions, and they shall be applied within (60) sixty days from the date of issuance.
Issued in Ramallah on 21/06/2023
Dr. Firas Malham Governor (Signature)