ELECTRONIC RETAIL PAYMENT SYSTEMS IN CONFLICT OF LAWS: Basic Electronic Payment Systems and Determination of the Applicable Law in North America and Europe*

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.