Regulations on the Electronic Settlement System for Credit, Debit, or Charge Cards Issued in Lebanon and Used Domestically on POS Terminals

825 / Text/Section/1 R/109 T/2025-12-31

Central Bank Circular No. 109 Also addressed to financial institutions, Lebanese and foreign companies licensed to issue debit, payment, or credit cards.

We enclose a copy of Basic Decision No. 9668 dated August 9, 2007, concerning the Electronic Settlement System for debit, payment, or credit cards issued in the Lebanese market and used domestically on Point of Sale (POS) terminals.

Beirut, August 9, 2007 Governor of Banque du Liban Riad T. Salamé

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Basic Decision No. 9668 Electronic Settlement System for Debit, Payment, or Credit Cards Issued in the Lebanese Market and Used Domestically on Point of Sale (POS) Terminals

The Governor of Banque du Liban, Pursuant to the Monetary and Loan Law, particularly Articles 70 and 174 thereof, Pursuant to Law No. 133 dated October 26, 1999, concerning the functions of Banque du Liban, Pursuant to Basic Decision No. 7299 dated June 10, 1999, and its amendments concerning the Automated Teller Machine (ATM) and credit/debit cards, particularly Article 5 thereof, Pursuant to the resolution adopted by the Central Council in its meeting held on August 8, 2007,

Decrees as follows:

Article 1: The Electronic Settlement System established at Banque du Liban and concerning debit, payment, or credit cards issued in the Lebanese market and used domestically on Point of Sale (POS) terminals, attached to this Decision, shall be implemented.

Article 2: This Decision and the attached system shall take effect as of January 1, 2008. (Amended by Article 1 of Interim Decision No. 9750 dated November 3, 2007 (Interim Circular No. 151).)

Article 3: This Decision and the attached system shall be published in the Official Gazette.

Beirut, August 9, 2007 Governor of Banque du Liban Riad T. Salamé

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Electronic Settlement System for Debit, Payment, or Credit Cards Issued in the Lebanese Market and Used Domestically on Point of Sale (POS) Terminals

Definitions: For the purposes of applying the provisions of this system, the following expressions shall bear the meanings set forth opposite them:

• Card: A debit, payment, or credit card issued in the Lebanese market.
• Appointed Institution: An institution that may be appointed by any debit, payment, or credit card company for the purpose of transmitting the electronic payment messages mentioned above on its behalf and guaranteeing coverage of the debit balance resulting from settlement in case of default by any "Participant", provided that it is an institution authorized to open accounts at Banque du Liban.
• Participants: Banks, financial institutions, or any Lebanese or foreign institution licensed to issue "Cards" in accordance with the prevailing laws and regulations.

Article 1: An Electronic Settlement System is established at the Head Office of Banque du Liban. Through this system, accounts of "Participants" are settled resulting from the use of "Cards" in Lebanese Lira domestically on Point of Sale (POS) terminals. Operations executed on these terminals in US Dollars are settled exclusively through "Visa" and "Mastercard" companies in the relevant accounts opened abroad. Amounts resulting from the use of "Cards" in Lebanese Lira, for individuals, domestically on POS terminals, are not subject to any type of restrictions or commissions and can be withdrawn in cash. (Note 1: Amended by Article 1 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.) (Note 2: Added by Interim Decision No. 13750 dated September 10, 2025 (Interim Circular No. 743).)

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Article 2: The settlement referred to in Article 1 above, regulated according to the provisions of this Decision, is mandatory for all debit, payment, or credit card companies and "Participants".

Article 3: Debit, payment, or credit card companies shall: a) Take all technical measures to complete the operations mentioned in Article 1 above. b) Deposit a power of attorney from each participating institution, through which Banque du Liban is authorized to make the necessary entries regarding the settlement operations specified in Article 1 above, according to the attached Annex.

Article 4: The settlement referred to in Article 1 above is carried out through Lebanese Lira credit deposit accounts, opened in the ledgers of the Head Office of Banque du Liban in Beirut and belonging to "Participants". (Note 1: The phrase "and in US Dollars" was deleted by Article 2 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.) (Note 2: Amended by Article 3 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.)

Article 5: To effect the settlement referred to in Article 1 above, debit, payment, or credit card companies are required to transmit electronic payment messages executed in Lebanese Lira, either directly to Banque du Liban or through the "Appointed Institution", provided that the card companies remain responsible for the correctness and accuracy of the information contained in such messages.

Article 6: Banque du Liban receives the electronic payment messages mentioned in Article 5 above in Lebanese Lira on working days before 11:00 AM, and settlement is effected at 12:00 PM based on them.

Article 7: In the event of any breakdown or sudden fault leading to the inability to transmit electronic payment messages, they shall be transmitted via one of the pre-agreed secure electronic means with Banque du Liban before 11:30 AM to the Payment Systems Department at Banque du Liban, with settlement being effected in all cases and no later than 12:00 PM. (Note 1: The phrase "and in US Dollars" was deleted by Article 2 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.) (Note 2: Amended by Article 3 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.)

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Article 8: Debit, payment, or credit card companies or the "Appointed Institution" must:

1. Request the opening of an account at Banque du Liban in Lebanese Lira.
2. Freeze a sum in Lebanese Lira to secure the settlement of operations transmitted by them to Banque du Liban for execution in "Participants" accounts opened at Banque du Liban. This sum is designated to guarantee coverage of the debit balance resulting from settlement referred to in Article 1 above, in case it cannot be paid by "Participants". Banque du Liban shall determine the amount to be frozen by each card company or "Appointed Institution", which must, at the end of each working day, replenish this amount if it falls below the limit set by Banque du Liban.
3. Pay the operational costs and expenses incurred by Banque du Liban for completing the settlement operations specified in Article 1 above, according to the principles determined by the latter based on the number of electronic payment messages it receives. (Note 1: The phrase "Current Operations Department" was deleted and replaced by "Payment Systems Department" by Article 4 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.) (Note 2: Amended by Article 5 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.) (Note 3: Amended by Article 6 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.)

Article 9:

1. "Participants" must, before 10:00 AM on each working day, fully provision their Lebanese Lira accounts operating in the Electronic Settlement System and opened for this purpose.
2. If "Participants" fail to secure sufficient provision to cover the Lebanese Lira debit balance, said balance shall be deducted from the frozen amount as security referred to in item (2) of Article 8 above. However, in all cases, debit, payment, or credit card companies remain responsible to Banque du Liban in case the debit balance is not covered by "Participants" or the "Appointed Institution". (Note 1: The phrase "Current Operations Department" was deleted and replaced by "Payment Systems Department" by Article 4 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.) (Note 2: Amended by Article 5 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.) (Note 3: Amended by Article 6 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.)

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Article 10: Debit, payment, or credit card companies or the "Appointed Institution" are requested to provide the Payment Systems Department at Banque du Liban with the names of coordinators, users, and persons responsible for the settlement operations mentioned in Article 1 above, stating their titles and phone numbers, and to notify any changes occurring thereto. (Note 1: The phrase "Current Operations Department" was deleted and replaced by "Payment Systems Department" by Article 4 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.) (Note 2: Amended by Article 7 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.)

Article 11: "Participants" are requested to:

• Electronically provide their cardholder clients with a monthly statement of all operations performed on their card accounts, unless the client requests a paper copy.
• Not charge clients fees or commissions exceeding customary practices for completing payment operations via locally issued cards, in any currency, and for the settlement operations referred to in Article 1 above.

Article 12: Any default by any "Participant" or "Appointed Institution" in fulfilling their obligations under this system shall subject them to the administrative penalties stipulated in Article 208 of the Monetary and Loan Law. (Note 1: The phrase "Current Operations Department" was deleted and replaced by "Payment Systems Department" by Article 4 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.) (Note 2: Amended by Article 7 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.)

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BANQUE DU LIBAN Electronic Settlement System for POS Transactions (ESPT)

Annex 1 Power of Attorney Letter

Side: Banque du Liban By: _________________________ (Name of debit, payment, or credit card company)

The bank ______________________________ hereby irrevocably authorizes you to record, in full responsibility, in the Lebanese Lira accounts opened with you, any amount due to or owed by it, in Lebanese Lira, arising from the electronic payment messages sent by debit, payment, or credit card companies or the "Appointed Institution" and resulting from or related to the use of the "Card" domestically on Point of Sale (POS) terminals, in accordance with the provisions of Basic Decision No. ______ dated ______.

To certify the correctness of the information stated above: [Signature/Stamp] Chairman of the Board

(Note 1: This Annex was amended by Article 8 of Interim Decision No. 13457 dated July 19, 2022 (Interim Circular No. 629), effective as of July 25, 2022.)