The extent of the bank's responsibility for electronic payments via banking applications: A comparative study between Libyan, Egyptian, and Saudi law

Abstract

The bank's responsibility for electronic payments in the three legal systems is characterized as a contractual responsibility based on the duty to secure transactions and preserve customer data. In Libyan law (Electronic Transactions Law), the bank is obligated to ensure the safety of the technical system and compensate for damage resulting from its vulnerabilities. Similarly, Egyptian law (Law Regulating the Use of Non-Cash Payment Methods) emphasizes the protection of the rights of the digital consumer, holding the bank responsible for unauthorized transactions unless the customer's negligence is proven. As for the Saudi system (Electronic Transactions Law and Central Bank rules), it adopts a strict standard in protecting customers, where it obliges the bank to prove "gross negligence" on the part of the customer to exempt itself from responsibility. The three legislations agree that the bank is the technically stronger party, which makes it primarily responsible for any breach of the application's security systems, with slight differences in the mechanisms for proving fault and determining the limit of compensation.