Civil Liability of Banks in Issuing and Using Bank Cards

Abstract

 recent years, the Kurdistan Region has witnessed notable progress in the realm of electronic transactions. Banking cards, as a facet of the electronic system, have experienced continuous development. The Region is now entering the foundational phase of an electronic exchange and currency system, exemplified by the comprehensive implementation of electronic salary disbursement for employees, who withdraw their funds from Automated Teller Machines (ATMs) using their banking cards.

     The issuance of a bank card necessitates the conclusion of a contract to regulate the relationship between the bank, in its capacity as the card issuer, and the card users, referred to as cardholders. This contractual relationship establishes beyond doubt that responsibilities are incumbent upon the parties, just as it grants them rights. Consequently, we seek to meticulously analyze the civil liability of banks during the process of issuing bank cards and their handling by cardholders, and to explore the implementation of an advanced banking card system that avoids replicating the very errors other nations encountered during the initial establishment of their banking card systems.

     In conclusion, we arrive at a set of findings, among which is that the lawful use of a bank card necessitates the fulfillment of the following conditions: The cards must be used by their legitimate owner; they must be authentic and not counterfeit or altered; they must be used within their validity period and prescribed limits; if the owner wishes to exceed the limit, the merchant must obtain authorization from the issuing authority; and their use must be within the framework of the purpose for which they were created, namely to facilitate the process of purchasing or providing a service. The violation of any of these conditions constitutes unlawful use.