A Review of the Development and Legal Nature of Payment Facilities

Abstract

This article will consider the development, operation and legal nature of payment facilities. To appreciate the nature of and issues associated with non-cash payment facilities, an understanding of the basic payment infrastructure is required. The following section of this article considers the basic payment infrastructure in Australia. The third part of this article gives an overview of a number of common payment facilities. It describes their basic features, commercial rationale and legal character. The fourth part of this article contains an analysis of some common legal issues and implications arising from the payments system. It looks at some legal issues arising from common payment facilities, their legal treatment and interaction with systems of contract and tort law. Together with the overview of common payment facilities, it will also serve as a basis for the discussion in an upcoming article of the risks associated with, and regulatory models for payment facilities.