Payment Service Providers

Enrollment with the Center

 Payment Service Providers have the following obligations:

  • Inform consumers about the website address of the ADR Entities covering them.

  • Inform consumers on their websites or in their general terms and conditions about the ADR Entities covering them.

  • Such an ADR Entity must be approved by the Consumer Protection Service regardless of whether the Credit Institution is covered by another ADR entity which does not have the necessary license.


The Alternative Resolution of Consumer Disputes Law of 2017 (85(I)/2017) describes the Trader as:

«… any natural persons, or any legal person irrespective of whether privately or publicly owned, who is acting, including through any person acting in his name or on his behalf, for purposes relating to his trade, business, craft or profession;»

Also, in accordance with the same Law:

«Traders established in the Republic must inform consumers of the Alternative Dispute Resolution Entity or Entities covering those traders, when traders… are obliged to use these dispute resolution bodies to resolve disputes with consumers. This information shall include the address of the website of the competent entities or alternative dispute resolution entities.»

Payment Service Providers fall within the definition of Trader and therefore fall within the ambit of the above Law.

Are Payment Service Providers required to use Alternative Dispute Resolution Entities?


According to the Law on the Provision and Use of Payment Services and Access to Payment Systems (L. 31(I)/2018) when Payment Service Providers provide services to users, the relevant articles in the law provide the following:

Article 100(3)

«The payment service provider shall inform the payment service user of at least one alternative dispute resolution entity responsible for resolving disputes concerning the rights and obligations arising from Parts II and IV, specifying how to access further information on the Alternative Dispute Resolution Entity, as well as the conditions for its use.»

Article 100(4)

The information referred to in subsection (3) must be provided in a clear, complete and easily accessible way on the website of the payment service provider (if such exists), at the branch and in the general terms and conditions of the contract between the payment service provider and the payment service user.

Article 101(1) 

“For the alternative settlement of disputes which arise between users and payment service providers concerning rights and/or obligations arising from Parts III and/or IV and/or Regulation (EU) No 182/2011. 924/2004, the procedures provided in the Law on the Alternative Settlement of Consumer Disputes apply.”

Article 101(2)

«The Consumer Protection Service ensures that alternative dispute resolution procedures apply to Payment Service Providers and cover the activities of their designated agents.»

From the wording of the Law, it seems that a Payment Service Provider is obliged to inform Users about Alternative Consumer Dispute Resolution Entities.

What are the Benefits of Alternative Dispute Resolution?

Compliance with a Legal Obligation

A Payment Services Provider is obliged to use an Alternative Dispute Resolution Entity based on Laws 85 (I)/2017 and Law 31 (I)/2018. By registering with the Cyprus Consumer Center for Alternative Dispute Resolution, a Payment Service Provider complies with its legal obligations.


A Trader who voluntarily submits to an ADR Entity, becomes more competitive than other Traders as it provides a service that its competitors may not provide.

The Consumer automatically considers such Traders more serious and professional than others, since s/he knows that in the event of a dispute, this will be resolved by an independent ADR Entity.

Good Customer Service

This reflects positively on the image of the trader since the consumer knows in advance that in case of a dispute, it will be resolved by an independent and approved ADR Entity. ADR adds to good customer service.

Avoidance of Complaints

Complaints to the Consumer Protection Service are avoided. Based on the Law, the Consumer Protection Service ensures the proper dissemination of information on how Consumers can resort to ADR procedures to resolve their disputes.

Avoidance of Direct Conflict

ADR Procedures are more friendly and avoid direct conflicts between the parties compared to Court proceedings. This is especially important so that the relationship between the parties (trader and consumer) continues even after the dispute has arisen.

Speed and Cost

ADR Procedures are faster than those of the Courts and the costs much lower. Under the Law, ADR Entities must examine a complaint within 90 days. This increases the efficiency of the business and precious time and resources are saved on legal and judicial proceedings.

Avoidance of Negative Publicity

In addition, a dispute between the Trader and the Consumer is resolved quickly and immediately without the prolonged negative publicity which may be caused to the Trader where it ignores the Consumer’s complaint or where it allows the dispute to end up in Court.

Flexible Procedures

ADR Procedures are flexible given that they are agreed at a time and place that is convenient for the parties and it is not necessary to follow strict rules of procedure.

The Cyprus Consumer Center for Alternative Dispute Resolution

Alternative Dispute Resolution Entities approved by the Consumer Protection Service comply with strict criteria. One such Alternative Dispute Resolution Entity, approved by the Consumer Protection Service is the Cyprus Consumer Center for Alternative Dispute Resolution.

The Cyprus Consumer Center for Alternative Dispute Resolution:

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    It is the only ADR Entity in Cyprus which covers Financial Disputes regardless of the size of the dispute.

  • It is the fastest in resolving disputes.

  • First to cover ALL consumer contracts for goods and services except telecommunications and postal services.

  • It has jurisdiction to resolve any disputes. More specifically, it regulates all disputes that may arise between a trader and a consumer in the context of any sale of goods or a service contract.

  • Εμπιστεύεται την Εναλλακτική Επίλυση Διαφορών σε άρτια εκπαιδευμένα πρόσωπα που διαθέτουν τη σχετική πείρα και γνώσεις για την αντιμετώπιση τυχόν διαφορών.

  • Entrusts ADR to well-trained individuals who possess the relevant Experience and Knowledge for resolving disputes.

For Payment Service Providers interested in registering with the Cyprus Consumer Center for ADR, please contact the Center


Tel: +357 22519741

Fax: +357 22318214


First in resolving all disputes