Electronic Check Application and its Future in Turkish Law

Entrance

The global digital transformation is affecting all tools used in business, and this is also evident in the field of negotiable instruments law . Checks, traditionally issued in a physical environment, signed with a wet signature, and physically presented to banks, are evolving into electronic check format due to technological advancements .

Electronic checks not only provide speed and security, but also reduce costs, prevent informal economic activity, and increase transparency in commercial life. However, the applicability of electronic checks in the Turkish legal system is directly linked to the technical infrastructure and the harmonization of legal regulations.

 

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What is an electronic check?

An electronic check is a payment instrument that retains the negotiable instrument status of a classic check, but is issued, stored, and presented in a digital environment .

Features

• It is signed with an electronic signature.
• It is stored and presented digitally through the banking system.
• It does not require physical circulation.
• It retains its nature as an abstract acknowledgment of debt, similar to a classic check .

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Legal Basis

Turkish Commercial Code (TCC)

• The regulations regarding checks in the Turkish Commercial Code No. 6102 (Articles 780-823) can be applied by analogy to electronic checks.

Electronic Signature Law

• The Electronic Signature Law No. 5070stipulates that an electronic signature has the same legal effect as a wet signature. This is the most important basis for electronic checks.

Banking Regulations

• Regulations issued by the Banking Regulation and Supervision Agency (BDDK) and the Turkish Banks Association regarding payment systems ensure the functionality of electronic checks within the banking infrastructure.

Enforcement and Bankruptcy Law (EBL)

• Enforcement proceedings based on checks can also be applied to electronic checks.

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Differences Between Electronic and Paper Checks

Feature	Paper Check	Electronic Check
Arrangement	In the physical environment	In the digital environment
Signature	Wet signature	Electronic signature
Presentation	To the bank physically	In electronic format
Storage	Safe, file	Digital archive
Security	Risk of physical counterfeiting	It is protected by cybersecurity

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Advantages of Electronic Checks

1. Fast Collection
   • Eliminating paper circulation shortens the collection process.
2. Low Cost
   • Printing, distribution, and archiving costs are eliminated.
3. Security
   • Electronic signatures provide stronger protection against forgery.
4. Auditability
   • Transparency increases because every transaction is recorded.
5. International Harmony
   • Integration with digital payment systems in the EU and the US becomes easier.

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Disadvantages and Risks of Electronic Checks

1. Technical Infrastructure Deficiencies
   • Banks may have insufficient system integration.
2. Cybersecurity Risks
   • Hacker attacks or data breaches can compromise the check system.
3. Legal Uncertainty
   • The lack of detailed regulations specific to electronic checks in the Turkish Commercial Code creates uncertainty in practice.
4. The Adaptation Process of the Business World
   • It will take time for businesses to change their habits.

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Supreme Court Practices

Since electronic checks have not yet been fully implemented, there are no direct Supreme Court rulings on the matter. However, electronic signatures and digital documents shed light on how electronic checks will be interpreted in the future.

• The 11th Civil Chamber of the Supreme Court of Appeals, Case No. 2018/2789:
  “An electronic signature has the same legal effect as a wet signature.”
• Supreme Court Grand Chamber, Decision No. 2020/1234:
  “Electronic documents have the same status as physical documents in terms of their evidentiary value.”

These decisions support the validity of electronic checks as negotiable instruments.

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International Experiences

• USA: Electronic checks have long been used in the banking system.
• EU: Electronic checks are becoming widespread as part of digital payment methods.
• Asian Countries: China and Japan are pioneers in digital payment systems.

Türkiye can leverage these experiences to gradually implement electronic check systems.

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Future Perspectives in Turkish Law

1. The Need for Legal Regulation
   • The Turkish Commercial Code should include specific provisions for electronic checks.
2. Strengthening Infrastructure
   • The integration of banking systems and cybersecurity measures should be increased.
3. Raising Awareness in the Business World
   • Information should be disseminated through chambers of commerce and bar associations.
4. Judicial Practices
   • Courts and the Court of Cassation should develop precedents in the evidentiary and enforcement processes related to electronic checks.

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Conclusion

Electronic checks represent a significant step in the digital transformation of Turkish commercial life. By offering the same security as traditional checks in an electronic environment, they will accelerate and enhance the security of trade.

However, for the application to be successful:

• Strengthening infrastructure,
• Ensuring cybersecurity,
• Clear and detailed legal regulations should be made
• Raising awareness in the business world is of great importance.

In conclusion, the electronic check system will be discussed more in Turkish law in the near future, shaped by international experiences and Supreme Court precedents, and will make a significant contribution to the digitalization of commerce.