The Legal Framework of Payment Service Providers in Georgia
The activity of payment system operators and payment service providers in Georgia is built on the norms of the Organic Law of Georgia on the National Bank. The central provision of this field — Article 48² of the law — provides that the National Bank exercises supervision over these entities in accordance with Georgian legislation: through registration, deregistration, inspection, the setting of additional requirements, the determination of initial and ongoing capital, the imposition of restrictions and the application of sanctions. Each element of that list is a practical challenge for a provider: registration is the gateway to the market, the capital requirements are a permanent operational burden, and inspections and sanctions are the risks that a compliance system must manage. Understanding how these instruments interact is the starting point of any PSP legal strategy in Georgia.
Registration, Capital and Sanctions
Under the second part of Article 48², the rules on registration and its cancellation, and the sanctions applicable to operators and providers — including the amount of monetary fines and the procedure for their imposition — are determined by normative acts of the National Bank, and the amounts of monetary fines are directed into the state budget of Georgia. The same article empowers the National Bank to determine the issues of granting and revoking the status of a significant system and of a significant payment service provider: it may grant a payment system the status of a systemically important or exceptionally important payment system and define the corresponding criteria and requirements towards capital and assets. The fitness of management stands separately: the National Bank is authorized to determine, by a legal act, the fitness criteria for administrators of a payment service provider and of a payment system operator. This means that the quality of the provider's governance and the reputation of its management are themselves part of the regulatory requirement — not merely a matter of internal policy. A separate component concerns international tax compliance: the National Bank is authorized to verify, in the procedure it establishes, how a payment service provider fulfils the requirements defined by the agreement between the Governments of Georgia and the United States on improving the performance of international tax obligations and foreign account tax compliance.
Payment Infrastructure — Articles 62 and 63
The Organic Law also defines the National Bank's infrastructure powers. Under Article 62, the National Bank may conclude clearing and payment agreements, or any other contract for the same purpose, with state and private central clearing institutions of foreign countries — both in its own name and in the name and on the instruction of Georgia. Article 63 gives it a broader mandate: the National Bank may develop and issue regulatory legal acts on clearing, settlement, payment services and payment systems, establish the relevant rules and requirements, organize the creation and implementation of payment systems in Georgia, manage and ensure their servicing and administration, assist other banks in creating payment systems, and supervise the payment systems and payment services operating in Georgia. For a provider this means that its technical and procedural environment is shaped directly by acts of the National Bank, and every amendment of those acts must be reflected in operational plans without delay.
Consumer Disputes — the Dispute Resolution Commission
For consumers of payment services, Article 64² is of particular importance: the independent dispute resolution commission at the National Bank examines disputes between a payment service consumer and a payment service provider that relate to rights and obligations arising from the Organic Law on the National Bank, from the Law on the Payment System and Payment Services, and from subordinate acts adopted on their basis. The examination opens on a complaint filed by the consumer; the commission is guided by the principles of competitiveness, fairness, transparency, objectivity, impartiality and equality of the parties, and examines the dispute free of charge. This is a fast and accessible forum that stands as an alternative to going to court — and it demands of the provider a well-ordered internal complaint-management procedure, because every consumer complaint may end up before the commission.
Frequently Asked Questions
Who supervises payment service providers?
The National Bank of Georgia — through registration, deregistration, inspection, capital requirements, restrictions and sanctions.
Where do the fine rules come from?
From normative acts of the National Bank; monetary fines are directed into the state budget.
Where can a consumer dispute be examined?
Before the independent dispute resolution commission at the National Bank — free of charge, under the principles of competitiveness and equality of the parties.
What does significant-system status mean?
The status of a systemically or exceptionally important payment system is granted by the National Bank and carries its own capital and asset requirements.
How We Help on Legal.ge
Payment service provider law requires combined knowledge of registration, capital, supervision and consumer-dispute rules. On Legal.ge you can engage a financial-law specialist who will plan the registration, assess the regulatory requirements for your business model and protect your interests in dealings with the National Bank. Submit a request on the site and get qualified assistance.