Ankara Law Review Vol.2 No.2 (Winter 2005), pp. 145-170 ELECTRONIC RETAIL PAYMENT SYSTEMS IN CONFLICT OF LAWS: Basic Electronic Payment Systems and Determination of the Applicable Law in North America and Europe* Dr. Banu Sit* ABSTRACT Emerging technological process has been affecting legal relationships and payment transactions. While contract formation via telephone, fax, telex and telegraph had been argued a few decades ago, today existing communication methods have been developing and affecting a wider part of the legal world on the one hand while on the other hand the internet came on the scene as a new mode of communications. The law has responded to these technological advances in two ways: either by adapting existing legal framework to cover new technological effects on legal institutions and relationships or by establishing new legal framework in accordance with the demands arising from new technology. In particular payment methods are developing in parallel with technology and international payment transactions are drawing special attention in terms of determining the law applicable to these transactions. The general view on this issue is characterized on splitting relationships. However the speed and complexity of electronic payment transactions has made those transactions controversial in terms of the applicable law. The main point of this issue is whether a single body of law should govern those transactions as a single transaction or the view of splitting should be considered to be the principal view. “ This study has been prepared in Dalhousie University Law and Technology Institute, while the author was a visiting scholar provided a post - doctorate grant by Turkish Academy of Sciences. Gazi University, Assistant Professor of Private International Law. 146 Ankara Law Review Vol.2 No.2 This article examines electronic payment systems and the law governing international electronic payment transactions with respect to that argument. ZET: İletiim teknolojisindeki yenilik ve deiiklikler, hukuki ilikileri ve deme sistemlerini etkilemektedir. Szlemelerin kurulmasna ilikin olarak telefon, telgraf, teleks ve faks gibi aralarn rol daha nceleri inceleme konusu edilmitir. Gnmzde bu iletiim aralar daha geni bir etki alanna sahiptir ve ayrca Internet yeni bir iletiim ortam olarak ortaya kmtr. Gelien teknolojik ara ve yntemlerle ilgili hukuki sorunlara hukukun yaklam ise iki temel zerinde belirginlemektedir. Bunlardan ilki, var olan hukuki dzenlemeleri teknolojinin getirdii yenilik ve deiikliklere uyarlamak; ikincisi deyeni teknolojinin gereklerine uygun olarak yeni hukuki dzenlemeler getirmek eklinde karmza kmaktadr. deme sistemleri de iletiim teknolojisindeki ilerlemelere paralel olarak gelimekte ve bu sistemler erevesinde yaplan milletleraras nitelikli ilemlere uygulanacak hukukun tespiti konusu dikkat ekmektedir. Bu konuya ilikin genel gr, sz konusu ilemlerin paralanmas suretiyle her bir ilem ve/veya ilikiye uygulanacak hukukun tespit edilmesi ynndedir. Ancak, elektronik deme ilemlerinin sratli ve karmak yaps, bu ilemleri, uygulanacak hukukun tespiti bakmndan tartmal hale getirmitir. Elektronik deme ilemlerine uygulanacak hukukun tespitine ilikin temel sorun, bu ilemlerin tek bir ilem olarak belli bir hukuka m tbi olmas gerektii; yoksa paralama gr dorultusunda deme ilemini oluturan her bir ilem/iliki iin uygulanacak hukukun tespiti yoluna m gidilmesi gerektiidir. Bu makalede, elektronik deme sistemleri ve elektronik deme ilemlerine uygulanacak hukuk meselesi, sz konusu tartma erevesinde incelenmektedir. KEY WORDS: Electronic payment, payment systems, international payment, applicable law. ANAHTAR KELIMLER: Elektronik deme, deme sistemleri, uluslararas deme, uygulanacak hukuk. 2005 Electronic Retail Payment Systems in Conflict of Laws 147 INTRODUCTION In this study, while examining electronic payment transactions and governing law, it was preferred to handle the issue using international and comparative law sources rather than focusing on a domestic system. From the perspective of comparative law, U.S., Canadian and European Union practices as well as sectoral or legal documents of those systems have been analyzed. This article, composed of Anglo-American and European sources, practices and legal instruments, does not contain specific explanations regarding the Turkish legal system with respect to electronic payment methods and private international law. However, since the problem of applicable law regarding electronic payment transactions is a pending problem in almost all legal systems of today, the explanations made in this article could be deemed substantially relevant to Turkish law as well. As implied in the title, the topic was considered only within in the framework of conflict of laws. Accordingly, the matter of jurisdictio