Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. 1 of 2022

Regarding Membership in the National Key System 194

Based on the provisions of Law No. (9) of 2010 concerning Banks, particularly Article (40) thereof, and based on the provisions of Law No. 17 of 2012 concerning the National Payment Settlement Law, particularly the provisions of Articles (7) and (11) thereof, and based on what was approved by the Board of Directors of the Palestine Monetary Authority in its meeting No. (22/243) dated 12/01/2022, and in accordance with the powers vested in us, and to achieve the public interest, we have issued the following Instructions:

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Article (1)

Definitions

The words and phrases contained in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:

Term	Definition
The System	The National Key 194 System operated and managed by the Palestine Monetary Authority.
Member	The Bank or Payment Service Company participating in the System.
Acquirer Member	The Member that accepts electronic transactions through ATMs or as an Acquirer Member.
Issuer Member	The Member that issues a payment card.
Person	A natural or legal person.
Customer	The person holding the payment card.
Merchant	The person contracted with the Point of Sale (POS) service provider for the purpose of accepting payment transactions at POS terminals.
Point of Sale (POS)	An electronic means of accepting payment transactions, provided by the POS service provider.
Barak System	The Electronic Real-Time Settlement System at the Palestine Monetary Authority.

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Article (2)

Objective and Scope of Application

1. The provisions of these Instructions aim to regulate membership in the System and the rules for executing transactions through it.
2. The provisions of these Instructions apply to all transactions of Members and financial movements executed through the System and the associated fees using debit cards and prepaid cards on ATMs and POS terminals within Palestine.

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Article (3)

Membership

1. Membership in the System is mandatory for all banks licensed to operate in Palestine.
2. Membership in the System is mandatory for all payment service companies that provide Point of Sale (POS) services.
3. A payment service company that issues prepaid payment cards may be a member of the System directly or by connecting to the System through one of the Members.

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Article (4)

Member Obligations

The Member must comply with the following:

1. Provide the appropriate technical environment and infrastructure for connection to the System, and pass the inspection process approved by the Palestine Monetary Authority.
2. Provide the necessary banking guarantees as determined by the Palestine Monetary Authority.
3. Execute transactions on the System in accordance with the instructions and guidelines issued by the Palestine Monetary Authority.
4. Comply with the inspection and audit plans and procedures requested by the Palestine Monetary Authority.
5. Take all necessary measures and precautions to protect data, information security, and reduce operational risks.
6. Provide a single direct connection point approved by the Palestine Monetary Authority for connection to the System.
7. Ensure that ATMs, POS terminals, and cards comply with the provisions of the instructions issued by the Palestine Monetary Authority.
8. Provide a dedicated screen for System transactions on ATMs owned by the Member, which must display at a minimum the name of the System, the services it provides, and the logo for other transactions that will be deducted.
9. Provide the services determined by the Palestine Monetary Authority through the System.

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Article (5)

Obligations of the Acquirer Member / POS Service Provider

In addition to what is stated in Article (4) of these Instructions, the Acquirer Member / POS Service Provider must comply with the following:

1. Obtain prior written approval from the Palestine Monetary Authority to provide POS services.
2. Clearly include in the agreement signed with the Merchant a clause showing the place of sale in a prominent place for the Customer, in addition to obliging the Customer to enter the card numbers themselves using cards or contactless applications when paying via POS.
3. Ensure that the Merchant complies with all terms of the agreement, particularly regarding information.
4. Include in the agreement signed with the Merchant that any violation of the provisions of paragraphs (3) and (4) of this Article leads to the cancellation of POS services for the Merchant.

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Article (6)

Connection Through a Member

A payment service company issuing prepaid payment cards that is not a Member of the System must connect to the System through one of the Members, provided that it complies with the following:

1. Obtain prior written approval from the Palestine Monetary Authority for connection through one of the Members.
2. Sign an agreement with one of the Members for connection, and provide a copy to the Palestine Monetary Authority.
3. Notify the Palestine Monetary Authority in writing at least (30) days in advance in case of termination or cancellation of the agreement during the period stated in paragraph (1) of this Article.

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Article (7)

Authorized Currencies

In addition to the Palestinian currency, the currencies of issue are currently the Jordanian Dinar, the US Dollar, the Shekel, or any other currency that the Palestine Monetary Authority may permit in the future. These are the currencies that the Member must provide for its operations for the purpose of executing transactions through the System.

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Article (8)

Financial Movements Executed Through the System

1. The Member must deduct or hold the value of the transaction executed through the System from the Customer's account.
2. The Member may deduct the value of the transaction from the Customer's account in accordance with the provisions of these Instructions.

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Article (9)

Disputes Between Members

1. The Member may submit a dispute on behalf of its Customer through the System within a maximum period of (90) days from the date the transaction was executed on the System. The Member receiving the dispute may accept or reject the submitted dispute if the specified period has been exceeded.
2. The Member must respond to the received dispute using the means provided by the System, supported by a reference and any related documents and information, as required in accordance with the provisions of paragraph (3) of these Instructions.

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Article (10)

Cash Withdrawal Fees

Cash withdrawal fees from ATMs shall be as follows:

1. (200) two hundred Jordanian fils for each cash withdrawal transaction in Jordanian Dinar currency.
2. (25) twenty-five cents for each cash withdrawal transaction in US Dollar currency.
3. (1) one Shekel for each cash withdrawal transaction in Shekel currency.

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Article (11)

Balance Inquiry Fees

Balance inquiry fees using ATMs shall be as follows:

1. (100) one hundred Jordanian fils for each balance inquiry transaction in Jordanian Dinar currency.
2. (12) twelve cents for each balance inquiry transaction in US Dollar currency.
3. (50) fifty agorot for each balance inquiry transaction in Shekel currency.

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Article (12)

POS Transaction Commission

1. The maximum limit for the Merchant Discount Rate (MDR), which is the value paid by the Merchant to the Acquirer Member / POS Service Provider for payment transactions executed on POS terminals through debit or prepaid payment cards.
   The payment is 0.5% of the transaction value.
2. An interchange commission is allocated between the Acquirer Member / POS Service Provider and the Issuer Member in favor of the Issuer Member at a rate of 0.2% on the transaction executed on POS terminals.
3. The Customer shall not bear any fees or amounts for using their card at POS terminals. The Acquirer Member / POS Service Provider must oblige the Merchant to this effect, and this must be included in the agreement concluded between them and the Merchant.

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Article (13)

Deduction of Fees

1. The Palestine Monetary Authority shall deduct cash withdrawal fees or balance inquiry fees stated in these Instructions from the Member's membership accounts in accordance with the provisions of Instruction No. (3) regarding Membership in the Barak System at the end of the System's working day, and they shall be recorded within the net multi-lateral balances by deducting from the settlement account of the Issuer Member, in addition to the settlement account of the Acquirer Member.
2. The Palestine Monetary Authority shall deduct the interchange commission stated in Article (12) of these Instructions from the settlement accounts of the Members in accordance with the provisions of Instruction No. (3) regarding Membership in the Barak System at the end of the System's working day, and they shall be recorded within the net multi-lateral balances by deducting from or adding to the settlement account of the Acquirer Member / POS Service Provider and/or the settlement agent's account.

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Article (14)

Fixed Membership Fees

1. The Bank Member must pay a fixed monthly subscription fee of (1100) one thousand one hundred US Dollars.
2. The Payment Service Company Member must pay a fixed monthly subscription fee of (500) five hundred US Dollars.

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Article (15)

System Logo

1. The ownership of the System logo belongs exclusively to the Palestine Monetary Authority, as shown in the figure below:

   

2. The design of this logo must comply with the technical and formal standards specified for it and issued by the Palestine Monetary Authority, as stipulated in Annex No. (2).

3. The logo must be displayed on ATMs and POS terminals.

4. The Member is prohibited from advertising in a misleading or deceptive manner using this logo.

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Article (16)

System Working Hours

1. The Member must comply with the System's working hours and clearing and cash settlement procedures in accordance with the instructions issued by the Palestine Monetary Authority.
2. The clearing session and financial settlement execution shall take place once every working day.
3. Cash settlement for System transactions shall be executed collectively on the first working day following official holidays in the Barak System.
4. The Palestine Monetary Authority may determine another time for executing clearing and cash settlement, or execute exceptional clearing and cash settlement operations, or cancel them on the working day, provided that Members are notified thereof.
5. The Palestine Monetary Authority may temporarily suspend the System's operation during working hours as it deems appropriate, provided that Members are notified thereof.

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Article (17)

Financial Guarantees for Non-Bank Members

1. The Payment Service Company Member must sign an agreement with a specialized bank in the Barak System to serve as the settlement bank for the Company, and provide it to the Palestine Monetary Authority.
2. The Payment Service Company must notify the Palestine Monetary Authority in writing at least (30) days in advance in case of termination or cancellation of the agreement stated in paragraph (1) of this Article.
3. Payment service companies must provide bank guarantees issued by the settlement bank designated by them, in which they commit and authorize the Monetary Authority for the unconditional and irrevocable purpose of honoring the Company's obligations in the System resulting from the execution of settlement on the Barak System in its account at the Palestine Monetary Authority.

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Article (18)

Settlement of Clearing Results

1. The Palestine Monetary Authority determines the debit and credit financial positions of Members based on net multi-lateral financial positions.
2. The final financial results of Members are calculated based on the data from the electronic clearing files received from the Member, and the Member bears sole responsibility for the accuracy of this data and correcting it in case of any errors.
3. The results of clearing operations are settled in the Barak System according to the principle of settlement of all payments or rejection of all payments based on net multi-lateral settlement.
4. The Member must provide sufficient liquidity to perform settlements for clearing operations and execute any deficit in their designated accounts in the Barak System, in accordance with the operational schedule determined by the Palestine Monetary Authority.
5. The Palestine Monetary Authority is hereby authorized to deduct from and add to the Member's special account in the Barak System.

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Article (19)

Business Continuity Procedures

1. The Member must obtain prior approval from the Palestine Monetary Authority in case of the need to temporarily disconnect or stop its private network's operation from the System, with the Member ensuring the following:
   • a. Identifying the reasons and justifications.
   • b. Identifying the date of implementing the measure and the time period for the interruption of services.
   • c. Notifying its customers through appropriate means regarding this measure and the expected time frame for resuming service provision.
2. In the event of sudden or emergency disconnection or stoppage of the Member's private network operation, the Member must notify the Palestine Monetary Authority immediately upon becoming aware of the event. After the event ends, the Member must provide the Palestine Monetary Authority with the reasons, the handling mechanism, and the measures taken to prevent the event from occurring in the future.
3. In addition to the System's availability procedures, the Member must take all measures ensuring the continuity of its business, including processing incoming requests and sending files required for the clearing process during the specified period.

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Article (20)

Suspension of Membership

1. The Palestine Monetary Authority may suspend membership in the System if the Member fails to comply with the provisions of these Instructions.
2. If the Palestine Monetary Authority deems such a measure necessary to protect the System and the interest of the banking sector.
3. In any of the cases stated in items (1) and (2) of this Article, the results of clearing operations shall be included in calculating the settlement result for that session as the Palestine Monetary Authority deems appropriate.
4. The suspension of a Member's membership does not exempt them from the obligations incumbent upon them or that may arise from their membership in the System during any time period, without a specific date for this obligation.

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Article (21)

Repeal

1. Instruction No. (5) of 2015 regarding the fees of the National Key System is repealed.

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Article (22)

Implementation and Enforcement

All competent authorities must implement the provisions of these Instructions within their respective jurisdictions, and they shall apply from the date of their issuance.

Issued in Ramallah on 13/01/2022

Firas Malham
Governor

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Annex No. (1)

Violation Report Form via the National Key

To: Respected Palestine Monetary Authority

Payments System Department
National Key Management Unit

We hereby clarify, through this letter, our submission of a dispute regarding the transaction below executed via the National Key on our accounts:

Status:	First Chargeback
	Re-presentment

Bank Name:

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Department:

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Card No.	TRX Date	Acquirer Bank	Issuer Bank	TRX Type	Amount /Currency	Message type	UTRNNO	AUTH ID RESP	REFNUM

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Annex No. (1)

Reason Documents: (Appropriate Dispute Re-presentation)

Chargeback Reason Codes

Reason Code	Description
4515	Cardholder Denies Transaction Finalized
4801	Requested transaction data was not received within maximum time frame
4802	Requested information illegible or missing within maximum time frame
4807	Warning bulletin
4808	Requested/ required authorization not obtained
4812	Account number was not on file
4831	Transaction amount differs
4834	Duplicate processing
4837	Fraudulent transaction: no cardholder authorization
4840	Fraudulent processing of transaction
4841	Canceled recurring transaction
4842	Late presentment
4846	Correct transaction currency code was not provided
4849	Questionable card acceptor activity
4850	Installment Transaction Dispute
4853	Cardholder Dispute Defective/Not as Described
4854	Cardholder dispute not elsewhere classified (U.S. only).
4855	Non-receipt of merchandise
4859	Services not rendered
4860	Credit not processed
4863	Cardholder does not recognize Potential fraud
4870	Chip Liability Shift
4871	Chip/PIN Liability Shift
4890	Identifies a syntax error return
4899	Domestic Chargeback Dispute

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Annex No. (1)

Re-presentment Reason Codes

Response Code	Description
2001	Invalid Acquirer Reference Data on chargeback: no documentation required or provided
2002	Non-receipt of required documentation to support chargeback within maximum time frame
2003	Correct transaction date provided
2004	Invalid Acquirer Reference Data on chargeback: documentation was received
2005	Correct card acceptor location/description provided
2008	Issuer authorized transaction
2011	Credit previously issued
2700	Chargeback remedied: see corresponding documentation
2701	Duplicate chargeback
2702	Past chargeback time limit
2703	Requested transaction document provided (requires hardship variance)
2704	Invalid member message text
2705	Correct MCC provided
2706	Authorization advised suspicious
2707	No authorization request required nor attempted
2708	Account was not listed on the applicable warning bulletin as of the transaction date
2709	Documentation received was illegible
2710	Scanning error unrelated documents or partial scan
2713	Invalid Chargeback
2870	Chip Liability Shift
2871	Chip/PIN Liability Shift

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Annex No. (1)

Explanations:

• Phone Number:

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• National ID:

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• Passport Number:

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• Data of the Authorized Person by the Bank:

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• Attached Documents:

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Bank Signature and Stamp

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National Key System

194

National Switch System

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National Key System

194

National Switch System

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Arabic Font: GE Dinar Two

English Font: Century Gothic

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Sticker

Size: 7X6 cm
Paper Type: Glossy Paper
Logo Size: 5.5X5 cm