Payment Cards Systems
There was notable growth in the use of payment cards in the 1990s, as these instruments became widely accepted among merchants and users alike. Further growth was experienced with the increased use of debit cards and EFTPOS. There is no national card scheme and therefore banks issue cards in cooperation with the two major international card operators, namely Visa and MasterCard. One local bank is the issuer of Diners and American Express cards in Cyprus.
In Cyprus there are two service providers for card payment schemes , JCC Payment Systems Ltd (JCC) and FBME Card Services Ltd (FBMECS). JCC was established by six local banks for the provision of payment system related services to the banking industry. The cards system handles the authorisation, clearing and settlement of debit, delayed-debit, credit and pre-paid card transactions, including cash withdrawals from ATMs, of locally issued cards and cards issued abroad when used in Cyprus.
Since early 2009, FBMECS has entered the local market offering acquiring services to merchants and e-commerce customers, and card issuing services.
As both of these organisations are licenced payment institutions for the provision of issuing and/or acquiring payment instruments, they are subject to the CBC’s supervisory competence based on the provisions of the Payment Services Law (available in Greek only). The Central Bank of Cyprus (CBC) has placed under its oversight function the clearing and settlement systems of JCC and FBMECS in accordance with the provisions of the CBC Law.