The Regulation On The Production and Usage of The TR Data Matrix Regarding Payment Services

7 September 2020

The “Regulation On The Production and Usage of The TR Data Matrix Regarding Payment Services” (“Regulation”) has entered into force through it’s publication on the Official Gazette dated 21/07/2020 and numbered 31220. The regulation governs the procedure and principles applicable to the production and usage of the TR data matrix in regards to payment services.

According to Article 4 of the Regulation regarding payments made with the TR Data Matrix:

TR data matrix shall be used regarding any payment within the scope of Law on Payment Services And Securities Reconciliation Table, Payment Services and Electronic Fund Institutions made using the TR Data Matrix.
Turkish Central Bank Joint Stock Company (“the Bank”) will be able to set an upper limit regarding payments to be made using the TR Data Matrix.
The Bank, payment service providers, system operators where TR Data Matrix transactions are made, workplaces, outside service providers shall have the authority to request necessary documents and information from the parties and has the right to examine on-sight if deemed necessary.
The responsibility arising out of related laws and regulations with respect to the matter of the payment of payment service providers, workplaces, consignors, consignees and other related parties in regards to payments initiated using the TR Data Matrix shall be reserved.

According to Article 5 of the Regulation regarding the production of the TR Data Matrix and The Data Matrix Generator Code,

TR Data Matrix shall be produced by a payment service provider that has the DataMatrix Generator Code and the payment system operator approved by the Bank.
TR data matrix to be produced within the context of Paragraph 1 shall be produced in accordance with the rules and principles stated in the Technical Document.
The Payment service provider shall be able to procure external service regarding the production of TR data matrix
The Data matrix Generator Code shall be determined by the Interbank Kart Merkezi Anonim Şirketi (“BKM”) upon the request of the payment service provider and the payment system operator approved by the Bank and shall be announced on their website.

According to Article 6 of the Regulation regarding the Technical Principles and Rules Guide,

The Technical Principles and Rules Guide, which includes the workflow regarding the transactions to be carried out through a specific payment system using the TR Data Matrix, shall be determined by the Bank upon the request of the relevant system operator. The Bank shall be authorized to prepare the Technical Principles and Rules Guide for a certain type of payment service, which includes the workflows related to the transactions to be performed using the TR Data Matrix if it is deemed necessary for the development of the payment area.
Procedure for the distribution and sharing of the Technical Principles and Rules Guide to be prepared in accordance with paragraph 1 shall be determined by the Bank.

According to Article 7 of the Regulation regarding the Data Matrix Instruction System;

If necessary in the processes related to payment services to be realized with TR Data Matrix, BKM shall establish and operate a QR Code Routing System in order to transfer the data matrix and the information contained in its content between payment service providers.
All procedures and principles regarding the implementation of this Article, including the operating rules of the Data Matrix Routing System, terms of participation and pricing according to the cost principle, shall be determined by the Bank and shall announced on its website.

According to Article 8 of the Regulation regarding the Authority and Responsibility of the payment provider in TR Data Matrix transactions, The Payment Service Provider;

Shall be obligated to ensure that the Data Matrix is produced in accordance with the Technical Document and to take the necessary precautions to ensure the safe and trouble-free payments to be made with the TR DataMatrix.
Will be able to determine an upper limit for transactions to be made using the TR Data Matrix provided that it does not exceed the limits set in Article 4 paragraph 2 of the Regulation.
Shall ensure that the QR code quality and readability are as high as possible and shall ensure the protection of the data matrix integrity, during the production of the data matrix.
Shall be responsible for the execution of the transactions to be made using the TR Data Matrix in accordance with the information on the data matrix and for the protection of the integrity of the information on the data matrix while the payment transaction is being made.
Shall show the necessary care in order to preserve the the physical security and readability of the data matrix in payment transactions to be made with the Static QR Code and shall include necessary provisions in the framework contract regarding necessary measures to be taken by the workplace.
In the event that the payment service provider receives an external service for the production of the data matrix, the provisions regarding the use of external services in the legislation shall be followed according to the nature of the payment transaction.
During TR Data Matrix transactions, the payment service provider of the Recipient shall be obliged to provide information to the recipient, and the Sender’s payment service provider to the sender, respectively, via appropriate methods such as telephone, text message or an application, as soon as possible following the conclusion of the transaction.

According to Article 9 of the Regulation regarding the Responsibilitles of Wokplaces in TR data matrix transactions,

The Workplace that enables payment by using TR data matrix shall obliged to inform the payment service users that the payment transaction can be made using the TR data matrix. Such a notification shall be made in accordance with the format determined by the Bank.
Workplaces that allows payments using the TR data matrix shall show the necessary care to endues that the transactions are made in accordance with the information placed in the data matrix and to protect the integrity of the information in the data matrix and shall take the necessary precautions to secure the physical safety and readability of the data matrix in payment transactions to be made using the static data matrix.

According to Article 10 of the Regulation regarding transactions including a foreign element;

According to the legislation of foreign countries, it will not be obligatory to use a TR DataMatrix for payment transactions made domestically using the payment instruments issued, where one of the parties of the transaction is located abroad and utilizing the infrastructure of a payment service provider located abroad for the payment transaction..

According to Article 11 of the Regulation, the Bank will have the authority to;

Interpret the provisions of this regulation.
To decide on issues that are not included and/or are not clearly stated in the Regulation while taking into account the general provisions.
To publish communiqués, circulars, and directives to regulate and direct the application.

According to the Provisional Article 1 where transitional provisions are regulated;

Payment service providers which provides to opportunity to pay using a QR code shall ensure that the data matrix and their infrastructures is aligned with this Regulation, Technical Document and the Technical Principles and Rules Guide if the payment service requires a transaction through a payment system, until 31/12/2021. The Bank shall be authorized to extend this period for no more than 1 year.
Payment service providers, which offer businesses the opportunity to accept payments through payment cards or payment systems operated by the Bank, shall be responsible for creating the infrastructure which enables payments by using the dynamic data matrix method provided in the Technical Document at their contracted workplaces until 31/12/2021. The Bank shall be authorized to extend this period for no more than one year.
Additional to workplaces payment cards or payment service providers that provide possibility of accept payment with payment service systems that are run by the Bank, device and application owners whose products were used during payment shall also take the necessary measures to ensure that their infrastructure allows payments to be made using a QR Code system provided for in the Technical Document. Such measures shall be taken until 31/12/2021. The Bank shall be authorized to extend this period for no more than one year.

The Bank shall be authorized to demand the payment service provider to cease the payment infrastructure services made to workplaces that don’t show the necessary effort regarding the measures within the scope of paragraph 3 without providing reasonable justification.