The Comparative Analysis of Human Mistake and Technical Error during a Course of Payment through Debit Cards in the Iranian and American Banking Law Systems

Abstract

Among the most challenging matters of banking law has always been payments done through banking cards. In the wake of the prevalence of debit cards in everyday banking system in Iran, this research’s main query is to analyze human mistake and technical error during a course of payment, and discern thereupon their difference with the unauthorized fund transfer. This question is analyzed through a comparative analysis with the banking system of the Unites States of America. This analysis can give a clear understanding of the legal responsibilities of the bank and card holders in the Iranian banking law in case of either human mistake in concluding a wrong payment order by the card holder, or technical error run by the operating bank. As the outcome of this analysis, in case of human mistake in concluding the wrong payment order by the card holder, bank has no legal responsibility before the card holder, but in case of any mistake and error in running the payment order, bank holds contractual liability and strict liability before the customer.