Notices > Directive for conduct within the national payment system in respect of domestic card transactions

2.1	In this directive, unless the context indicates otherwise, the words and expressions used shall have the same meaning as assigned to them in the NPS Act, and similar expressions shall have corresponding meanings.

2.1.1

"Acquiring"

means a process whereby a participant, such as a bank, acquires or accepts a payment instrument issued by a paying or an issuing participant.

2.1.2

"Card acquirer"

means a clearing system participant and a member of a card scheme that enters into a contractual relationship with a merchant and the card issuer, for the purpose of accepting and processing card transactions.

2.1.3

"Card issuer"

means a clearing system participant and a member of a card scheme that has entered into a contractual relationship with a cardholder, in terms of which a card is issued to effect a payment, withdraw cash or transfer funds.

2.1.4

"Cardholder"

means the person or entity that enters into an agreement with a card issuer in order to obtain a card. Through this agreement, the cardholder is authorised to use the card to effect a payment, withdraw cash or transfer funds.

2.1.5

"Clearing system participant"

means a bank, a mutual bank or a cooperative bank, a designated clearing system participant, or a branch of a foreign institution, as contemplated in the NPS Act, and a member of the PSMB.

2.1.6

"Domestic card"

means a card payment instrument that is issued to a cardholder by a card issuer to perform card transactions within South Africa, although this card may be enabled to perform cross-border/international transactions.

2.1.7

"Domestic card transaction"

means a transaction to effect payment, withdraw cash or transfer funds using a domestic card within South Africa, and which is acquired by a card acquirer within South Africa.

2.1.8

"Issuing"

means a process whereby a card issuer provides a payment instrument to its customers to effect payment, withdraw cash or transfer funds.

2.1.9

"Merchant"

means a retailer or any other entity, a firm or a corporation that enters into an agreement with a card acquirer to accept card payments, when properly presented, as payment for goods and services (including cash withdrawals), which will result in a transfer of funds in its favour. The merchant must:

i.	hold a business licence in South Africa, or be otherwise authorised to conduct business in South Africa;

ii.	pay taxes in South Africa; and

iii.	maintain an office or physical presence in South Africa.

South African Reserve Bank Act, 1989 (Act No. 90 of 1989)

Notices

Directive for conduct within the national payment system in respect of domestic card transactions

2. Definitions