Merchant contract in the credit card system (Comparative study of the issuing bank's obligations to the credit card by the merchant)

Abstract

The enormous technological development witnessed in the world in the late twentieth century, especially in the field of computer and the internet, has led to the inclusion of credit card system into the market of civil and commercial transactions. In view of the modernity of this system and the multiplicity of relations and legal problems resulting from it, it was necessary for the legislator to intervene to regulate it, and this is what the legislator did in some countries, while the regulation of this system in many countries, including Iraq, subjects to the general provisions of the law and banking traditions that may no longer be able to accommodate the provisions of this multi-relationship system and the ramifications of the provisions. This study is an attempt to illuminate the way for the Iraqi legislator in his future efforts to legislate a law regulating the issuance and use of a credit card. The study includes examining a specific aspect of the various aspects of the credit card system, namely the contract between the issuing bank and the merchant. Specifically, this study examines the obligations of issuing bank of the credit card towards the merchant in the merchant's contract within the credit card system. This study is an attempt to illuminate the way for the Iraqi legislator in his future efforts to legislate a law regulating the issuance and use of a credit card. This includes examining the various aspects of the credit card system, namely the contract between the issuing bank and the merchant. Specifically, this study examines the bank's credit card obligations towards the merchant in the merchant's contract within the credit card system. This study has reached several results regarding the concept of the merchant's contract in the credit card system and its legal adaptation. The study concluded that adapting the merchant's contract as an indefinite contract of a special nature is the more accurate adaptation. The study also concluded that there are in merchant contract multiple obligations on the issuing bank of the credit card towards the merchant, some of them are direct obligations towards the merchant, and others are indirect obligations on the issuing bank of the credit card towards the merchant not in direct deal with the merchant, but in context of dealing of the issuing bank of the credit card with credit card holder. The direct obligations of the credit card issuing bank towards the merchant are obligation to provide the merchant with the means to deal with the credit card, obligation to the informing, and obligation to provide a secure and effective system for accepting and dealing with credit card. While the indirect obligations of the issuing bank of the credit card towards the merchant are obligation to issue the credit card in accordance with the agreement with the merchant and obligation to pay the bills of the credit card holder to the merchant. The study presented several suggestions in front of the Iraqi legislator about provisions regulating the obligations of issuing bank of the credit card obligations towards the merchant in the merchant's contract within the credit card system, and the Iraqi legislator can rely on them in the drafting of any special law to be legislated in the future in regulating the issuance and use of the credit card.