Payment Service Provider (PSP) Law represents a broad spectrum of legal services that go beyond the initial licensing stage and cover the daily operational activities of the provider. Once a company receives the right to operate in the market, it needs a solid legal infrastructure for relationships with clients, agents, merchants, and partner banks. This field includes drafting contracts, dispute resolution, handling consumer complaints, and issues of civil liability. An incorrectly drafted contract or a violation of consumer rights can lead to severe financial losses and litigation. Legal.ge offers access to lawyers specializing in payment business legal support, ensuring the protection of your commercial interests.
What does Payment Service Provider Law cover?
This service focuses on the legal aspects of business functioning and includes:
- User Agreements: Drafting agreements with users that detail the rights of the parties, commissions, transaction deadlines, and liability limits.
- Merchant Relations: Drafting agreements with online stores and retail outlets (e-commerce agreements), defining settlement terms and chargeback rules.
- Legal structuring of agent networks: Contracts with agents (e.g., PayBox operators) who accept payments on behalf of the provider.
- Unauthorized Transactions: Preparing legal opinions and managing disputes in case a user contests a transaction (fraud, stolen card).
- Data Exchange Agreements: Contracts regarding API integration with other financial institutions.
- Review of promotional materials: Determining the compliance of marketing campaigns with consumer protection legislation (preventing misleading advertising).
Common scenarios and needs
During operations, providers face the following legal challenges:
- Chargeback disputes: When a user requests a refund due to non-receipt of service, and the provider must determine who is liable — them or the merchant.
- System failure and damages: Delayed or incorrectly executed transactions due to technical glitches, resulting in claims for damages from the client.
- Contract termination: Terminating relationships with a merchant or agent due to breach of contract and legally managing this process.
- International transfers: Adapting contracts related to cross-border payments to the legislation of different jurisdictions.
Georgian Legal Framework
The main legislative acts operating in this field are:
- Civil Code of Georgia: Regulates contractual relations, compensation for damages, and the law of obligations.
- Law of Georgia on Payment Systems and Payment Services: Defines deadlines for payment execution, obligations to provide information, and liability distribution for unauthorized operations.
- Law of Georgia on Protection of Consumer Rights: Sets standards for transparency of service terms and prohibition of unfair terms.
- Law of Georgia on Electronic Communications: Relevant for transactions concluded in electronic form.
Service Process Step-by-Step
Specialists on Legal.ge offer the following steps:
- Needs Analysis: Studying the company's business processes and identifying weak points in the contractual base.
- Template Development: Preparing standard contracts (for merchants, users) tailored to the company's specifics.
- Negotiations: Participating in agreeing on contract terms with major partners (banks, international payment systems).
- Dispute Management: Reviewing complaints, preparing response letters, and, if necessary, court representation.
Why Legal.ge?
The payment business carries high risks, where every transaction can lead to a legal dispute. Legal.ge is a platform gathering financial law expertise. Our specialists are not just lawyers, but industry experts who understand the technical and commercial nuances of payments. Find your corporate lawyer on Legal.ge and ensure the legal safety of your business on a daily basis.
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