PMA Instructions No. 2 of 2023 on the Issuance of QR Codes

[Logo of the Palestine Monetary Authority] Palestine Monetary Authority PALESTINE MONETARY AUTHORITY

Instructions No. (2) of 2023 Regarding the Issuance of QR Codes

Based on the provisions of Law Decree No. (41) of 2022 concerning National Payments, particularly Articles (7 and 18) thereof, and based on what the Board of Directors of the Palestine Monetary Authority approved 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 expressions used 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

1. 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.
2. The provisions of these Instructions apply to all Issuing Members.

Article (3) Obligations of the Issuing Member

1. The Issuing Member shall comply with the following: a. Providing the necessary 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 mechanisms to ensure the protection of data and information of issued QR codes. d. Taking all necessary measures and precautions to manage various risks that may arise from the issuance and use of QR codes in electronic payment transactions.
2. 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 QR code issuance 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:

1. Static QR Code.
2. Dynamic QR Code.

Article (6) Use Cases

1. A payment service provider that offers its customers the services listed below shall provide them with the ability to use QR codes, subject to 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.

2. The Issuing Member may use QR codes in cases other than those mentioned in paragraph (1) of this Article, subject to obtaining prior approval from the Palestine Monetary Authority.

Article (7) Exceptions

All check papers containing QR codes issued by banks prior to the effective date of these Instructions are exempt from their provisions.

Article (8) Implementation and Entry into Force

All competent authorities shall implement the provisions of these Instructions within (60) sixty days from their issuance date.

Issued in Ramallah on 21/06/2023 AD dr. Firas Melhem Governor [Signature]