Circular No. 19/2016/TT-NHNN on bank card activities

CIRCULAR

Regulations on Bank Card Activities

                ______________                  

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

No. 06/2013/UBTVQH13 dated March 18, 2013;

Pursuant to Decree No. 101/2012/NĐ-CP dated November 22, 2012 of the Government on cashless payments;

Pursuant to Decree No. 156/2013/NĐ-CP dated November 11, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Payment Department Director;

The Governor of the State Bank of Vietnam promulgates this Circular regulating bank card activities.

 

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular regulates bank card activities (hereinafter referred to as "cards") including: issuance, use, payment, switching, electronic settlement, and clearing transactions.

Article 2. Applicability

1. Issuing organizations.

2. Payment organizations.

3. Switching organizations.

4. Electronic settlement organizations for card transactions.

5. Acceptance units.

6. Cardholders.

7. Other organizations and individuals related to card activities.

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

1. Bank card is a means of payment issued by the card issuing organization to conduct card transactions under the conditions and terms agreed upon by the parties.

Cards in this Circular do not include types of cards issued by organizations supplying goods and services solely for use in paying for their own goods and services.

2. Debit card (debit card) is a card that allows the cardholder to conduct card transactions within the amount and overdraft limit (if any) on the cardholder's payment account opened at the issuing organization.

3. Credit card (credit card) is a card that allows the cardholder to conduct card transactions within the credit limit granted according to the agreement with the issuing organization.

4. Prepaid card (prepaid card) is a card that allows the cardholder to conduct card transactions within the value of money loaded onto the card corresponding to the prepaid amount paid to the issuing organization.

Prepaid cards include: Named prepaid cards (containing identification information about the cardholder) and unnamed prepaid cards (without identification information about the cardholder).

5. Joint brand card is a card bearing the brand of the issuing organization and the brand of the associated or cooperating organization.

6. Physical card is a card having a physical form, typically made of plastic material, equipped with a magnetic stripe or an electronic chip to store card data.

7. Non-physical card is a card that does not have a physical form but still contains the information specified in Article 12 of this Circular, issued by the issuing organization for the cardholder to conduct transactions via the Internet, mobile phone, or other electronic devices accepting cards. Non-physical cards may be printed as physical cards by the issuing organization upon request of the cardholder.

8. Card transaction is the use of a card to deposit, withdraw cash, transfer funds, pay for goods and services, and use other services provided by the issuing organization and the payment organization.

9. Fake card is a card not issued by the issuing organization but containing genuine card information and cardholder information.

10. Fraudulent or counterfeit card transaction is a transaction using a fake card or a card used illegally or with unauthorized information.

11. Cardholder is an individual or organization provided with a card by the issuing organization for use, including primary cardholders and secondary cardholders.

12. Primary cardholder is an individual or organization named in the contract for issuing and using the card with the issuing organization.

13. Secondary cardholder is an individual permitted by the primary cardholder to use the card, and the primary cardholder commits in writing to fulfill all obligations arising from the use of the card according to the contract for issuing and using the card.

14. Card issuing organization (TCPHT) is a credit institution or foreign bank branch authorized to issue cards in accordance with Article 9 of this Circular.

15. Payment organization (TCTTT) is a credit institution or foreign bank branch authorized to process card payments in accordance with Article 21 of this Circular.

16. Switching organization is an intermediary payment service provider that performs switching of card transactions for TCPHTs, TCTTTs, international card organizations, and acceptance units pursuant to written agreements between the parties.

17. Electronic settlement organization for card transactions is an intermediary payment service provider that performs electronic settlement of financial obligations arising from card transactions for TCPHTs, TCTTTs, international card organizations, and acceptance units pursuant to written agreements between the parties.

18. Acceptance unit (ĐVCNT) is an organization or individual accepting payment for goods and services by card under a payment card contract signed with the TCTTT.

19. International card organization (TCTQT) is an organization established abroad in accordance with foreign laws, which has agreements with TCPHTs, TCTTTs, and other relevant parties to cooperate in issuing and processing cards with issuer identification numbers issued by TCTQT in compliance with Vietnamese laws and international commitments.

20. Automated teller machine (Automated Teller Machine - ATM) is a device that cardholders can use to perform transactions such as depositing, loading, withdrawing cash, transferring funds, paying bills, checking account information, changing PIN, querying card information, or other transactions.

21. Point-of-sale terminal includes Point of Sale (POS), Mobile Point of Sale (mPOS), and other card acceptance devices installed and used at acceptance units where cardholders can use cards to pay for goods and services. POS may be installed at branches or transaction offices of TCTTT to provide cash to cardholders according to agreements between TCTTT and TCPHT.

22. Personal identification number (PIN) is a secret code assigned by the TCPHT to the cardholder initially and subsequently changed according to a defined procedure for use in card transactions.

23. Issuer identification number (BIN) is a series of digits used to identify the TCPHT as prescribed by the State Bank of Vietnam.

24. Contract for issuing and using cards is a written agreement between the TCPHT and the cardholder regarding the issuance and use of cards.

25. Payment card contract is a written agreement between the TCTTT and the acceptance unit or with the TCTQT (if applicable) regarding card payments.

Article 4. Currency used in card transactions

1. Within the territory of Vietnam:

a) Cash withdrawal transactions using cards must be conducted in Vietnamese Dong;

b) For other card transactions:

(i) The transaction currency is Vietnamese Dong. In cases where foreign exchange can be used for transactions according to laws on foreign exchange management, the transaction currency may be Vietnamese Dong or Vietnamese Dong and foreign currency;

(ii) The payment currency is Vietnamese Dong. Card Issuing Organizations are only allowed to accept payments in Vietnamese Dong from Card Accepting Organizations;

c) In cases where it is necessary to convert from foreign currency to Vietnamese Dong, the exchange rate between Vietnamese Dong and foreign currency shall be based on the rate agreed upon by the parties and in compliance with the regulations of the State Bank of Vietnam.

2. Outside the territory of Vietnam:

When conducting card transactions outside the territory of Vietnam, cardholders must settle payments to Card Accepting Organizations in Vietnamese Dong at the exchange rate agreed upon by the parties and in compliance with the regulations of the State Bank of Vietnam.

 

Article 5. Service Fees for Cards

         1. Only Card Accepting Organizations are permitted to charge fees from cardholders. Card Accepting Organizations collect service fees according to their own Fee Schedule and are not allowed to collect any additional fees beyond those published in the Fee Schedule. The Fee Schedule must clearly specify the types of fees, fee rates applicable to each type of card and card services. The Fee Schedule of Card Accepting Organizations must comply with the law, be publicly posted, and provided to cardholders before use and when changes occur. Methods of notification and provision of information about fees to cardholders must be specifically stipulated in the card issuance and usage contracts. The period from notification to implementation of fee changes must be at least seven days and must be specifically stipulated in the card issuance and usage contracts.

         2. Card Issuing Organizations agree on the collection of discount fees from Card Accepting Organizations. The sharing of fees among Card Accepting Organizations, Card Issuing Organizations, card switching organizations, electronic settlement organizations for card transactions, and foreign bank branches is determined by mutual agreement in accordance with the law.

         Article 6. Handling Risks and Losses of Assets in Card Business

1. Card Accepting Organizations implement the establishment and utilization of reserves to handle credit risks in card business according to current regulations of the State Bank of Vietnam regarding the establishment and utilization of reserves to handle credit risks.

2. For other types of risks in card business, Card Accepting Organizations and Card Issuing Organizations handle asset losses arising therefrom according to financial regulations for credit institutions and foreign bank branches.

Article 7. Seizure of Cards

Cards will be seized in the following situations:

1. Fake cards.

2. Cards used illegally.

3. To assist in criminal investigation and prosecution as prescribed by law.

4. Other card seizure situations agreed upon in the card issuance and usage contract.

Article 8. Prohibited Acts

1. Manufacturing, using, transferring, and circulating fake cards.

2. Conducting fraudulent or counterfeit card transactions; fictitious transactions at Card Accepting Organizations (no actual purchase of goods or provision of services occurs).

3. Card Accepting Organizations collecting surcharges or discriminating in pricing when cardholders pay for goods and services with cards.

4. Stealing, colluding to steal card information; disclosing and providing card information, cardholders' information, and card transactions in violation of the law.

5. Unauthorized access or attempts to gain unauthorized access, or destruction of programs or databases of card issuance, payment, switching, and electronic settlement systems.

6. Using cards to conduct transactions for money laundering, terrorist financing, fraud, deception, and other illegal activities.

 

Chapter II

CARD ISSUANCE

Article 9. Card Issuing Organizations

1. Commercial banks, cooperative banks, and foreign bank branches may issue cards when their card service provision activities are recorded in the License or Supplemental License (if applicable) issued by the State Bank.

2. Policy banks shall issue cards in accordance with the provisions of the Government and the Prime Minister.

3. Financial companies are only permitted to issue credit cards after obtaining approval from the State Bank. Factoring companies are not allowed to issue cards.

4. Credit institutions authorized to conduct foreign exchange operations may enter into agreements with the National Payment Corporation to issue cards bearing BINs issued by the National Payment Corporation.

Article 10. Procedures for Card Issuance

1. Card Issuing Organizations must establish internal regulations on card issuance applicable within their systems. When issuing non-physical cards, Card Issuing Organizations must develop documentation describing the card opening/shutdown process, transaction execution procedures, risk management processes (including identification, measurement, control, and handling steps), scope of card usage, and measures to control card usage within agreed-upon limits.

2. Prior to issuing a new type of card or changing the design of an already issued card, Card Issuing Organizations must register the card design with the State Bank. The registration dossier and procedures follow the provisions set forth in Article 11 of this Circular. After the State Bank confirms the card design registration, Card Issuing Organizations are permitted to issue the registered card type.

3. When issuing debit cards, Card Issuing Organizations must require the primary cardholder to have a settlement account opened at the Card Issuing Organization.

4. Agreements regarding card issuance and usage must be established in a card issuance and usage contract in compliance with the provisions of this Circular and other relevant laws. The contract contents must comply with the provisions set forth in Article 13 of this Circular.

5. Before signing a card issuance and usage contract with customers, Card Issuing Organizations must request cardholders to provide all necessary information and documents to identify customers in accordance with the law.

6. Card Issuing Organizations in Vietnam must use BINs issued by the State Bank, except in cases stipulated in Clause 7 of this Article.

7. Card Issuing Organizations in Vietnam that agree to issue cards bearing the brand of the National Payment Corporation may use BINs issued by the National Payment Corporation.

8. Card Issuing Organizations may not agree with other organizations for the purpose of limiting or preventing the issuance of co-branded cards.

9. When ceasing to issue additional types of previously issued cards, Card Issuing Organizations must notify the State Bank in writing for monitoring and management purposes.

Article 11. Dossier and Procedures for Card Design Registration

1. Card Issuing Organizations must prepare one set of card design registration dossier to submit directly or send via postal service to the State Bank, including:

a) A card design registration form attached as an appendix to this Circular;

b) Physical samples of the card (for physical cards) or anticipated card designs when printed (for non-physical cards);

c) Copies of cooperation agreements for card issuance with the National Payment Corporation in cases where cards bearing BINs issued by the National Payment Corporation are being issued;

d) Copies of agreements signed with card switching organizations, electronic transaction clearing organizations, or organizations cooperating or collaborating in card issuance (if applicable).

2. In cases where documents in the card design registration dossier are copies, Card Issuing Organizations may choose to submit certified copies, copies extracted from original records, or copies presented alongside originals for verification, with the verifier signing to confirm the accuracy of the copy compared to the original. For documents specified in points c and d of Clause 1 of this Article that have been submitted to the State Bank and have not changed, Card Issuing Organizations need not resubmit them in the card design registration dossier.

3. Within five working days from the date of receiving a complete and valid dossier, the State Bank will issue a confirmation document for the card design registration of the Card Issuing Organization.

Article 12. Information on the card

1. The information on the card must include the following elements:

a) The name of the Payment Service Provider (PSP) (abbreviated name or trade mark of the PSP) on the front of the card;

b) The name of the card switching organization to which the PSP is a member (abbreviated name or trade mark of the card switching organization);

c) The name or trademark of the card (if applicable);

d) The card number;

đ) The validity period (or the date of commencement of validity) of the card;

e) The full name of the cardholder if the cardholder is an individual; the name of the organization for organizational cardholders and the full name of the individual authorized by the organization to use the card. This provision does not apply to anonymous prepaid cards.

2. In addition to the information prescribed in Clause 1 of this Article, the PSP may provide additional information on the card but it must comply with the provisions of Vietnamese law.

Article 13. Issuance and Usage Contract for Cards

1. The issuance and usage contract for cards must include the following minimum contents:

a) Contract number;

b) Date (day, month, year) of contract establishment;

c) Name of the PSP, name of the cardholder; full name of the individual authorized by the cardholder to use the card for organizational cards;

d) Contents regarding the rights and obligations of the parties;

đ) Provisions on fees (types of fees, changes to fees);

e) Provision of information by the PSP to the cardholder regarding account balance, transaction history, and other necessary information;

g) Credit limits and changes to credit limits, including overdraft limits (for debit cards) and credit limits, credit period, repayment period, minimum repayment amount, repayment methods, interest rates (for credit cards and debit cards with overdraft facilities). Agreements on providing credit to cardholders can be included in the issuance and usage contract or in separate agreements;

h) Scope of card usage;

i) Situations where card payments will be refused;

k) Situations where the card will be temporarily locked, seized, or its validity terminated during usage;

l) Situations where unused funds on the card will be refunded;

m) Implementation of security measures during card usage and situations involving lost cards or exposed card information;

n) Handling of disputes, complaints, and claims during card usage.

2. For anonymous prepaid cards, the PSP must have regulations and terms regarding the issuance and usage of anonymous prepaid cards and make them public to customers. The PSP must have a written agreement with the party requesting the issuance of anonymous prepaid cards, the minimum content of which includes: information about the party requesting the issuance of the card, the number of cards issued, card limits, adding funds to the card, scope of card usage, validity period (or the date of commencement of validity) of the card.

Article 14. Card Limits

1. The PSP agrees with the cardholder on payment limits, transfer limits, cash withdrawal limits (including overseas cash withdrawal limits), and other usage limits for the cardholder in accordance with current laws on foreign exchange management and other relevant laws.

2. For anonymous prepaid cards, the PSP specifies specific balance limits and additional funding limits for the card, ensuring that the balance on an anonymous prepaid card at any time does not exceed five million Vietnamese dong.

Article 15. Issuance of Credit through Cards

1. The issuance of credit through credit cards must comply with the following requirements:

a) It must be carried out in accordance with the card issuance and usage contract and other agreements on credit issuance between the Card Issuing Organization (TCPHT) and the cardholder (if applicable);

b) TCPHT must have internal regulations on issuing credit through credit cards that comply with legal provisions on ensuring safety in credit issuance activities, including specific provisions on the target group, credit limit, conditions, term of credit issuance, repayment term, interest rate applied, and the review and decision-making process for credit issuance through cards, clearly defining responsibilities between the review and decision-making stages;

c) TCPHT shall consider and decide to issue credit through credit cards to cardholders who meet all of the following conditions:

(i) The cardholder belongs to the target group specified in point a, Clause 1 and Clause 2, Article 16 of this Circular and does not belong to the group prohibited from receiving credit as stipulated in Article 126 of the Law on Credit Institutions and guidelines issued by the State Bank of Vietnam;

(ii) The cardholder uses borrowed funds for the intended purpose and has financial capacity to repay debts on time;

d) TCPHT shall examine and require cardholders to apply measures to ensure their obligation to repay debts according to legal provisions.

2. Overdraft lending for debit cards issued by TCPHT must comply with current legal provisions and guidelines issued by the State Bank of Vietnam on lending.

3. Issuance of credit through credit cards and overdraft lending for debit cards issued by TCPHT must comply with restrictions and limits on credit issuance as stipulated in Articles 127 and 128 of the Law on Credit Institutions and guidelines issued by the State Bank of Vietnam.

 

Chapter III

USE OF CARDS

Article 16. Eligible Users of Cards

1. For individual cardholders:

a) Individuals aged 18 years or older with full capacity for civil conduct according to the law may use debit cards, credit cards, and prepaid cards;

b) Individuals aged 15 years or older but under 18 years old who are not deprived or restricted in their civil capacity and have personal assets to ensure their obligations when using cards may use non-overdraft debit cards and prepaid cards.

2. For organizational cardholders: Organizations established and operating legally in accordance with Vietnamese laws, including juridical persons and private enterprises, may use various types of cards. Organizational cardholders may authorize individuals in writing to use organizational cards or allow individuals to use secondary cards as stipulated in this Circular.

3. For secondary cardholders:

Secondary cardholders may use cards as specifically designated by the primary cardholder within the following scope:

a) Individuals aged 18 years or older with full capacity for civil conduct according to the law may use debit cards, credit cards, and prepaid cards;

b) Individuals aged 15 years or older but under 18 years old who are not deprived or restricted in their civil capacity may use debit cards and credit cards upon written consent from their legal representatives regarding the use of such cards;

c) Individuals aged 6 years or older but under 15 years old who are not deprived or restricted in their civil capacity may use non-overdraft debit cards and prepaid cards upon written consent from their legal representatives regarding the use of such cards.

Article 17. Principles of Card Usage

1. Cardholders must provide complete and accurate information as required by TCPHT when signing the card issuance and usage contract and bear responsibility for the truthfulness of the information provided.

2. When using credit cards or overdraft debit cards, cardholders must use funds for the intended purpose and fully and timely repay TCPHT for borrowed amounts and accrued interest according to the signed contract with TCPHT.

3. Scope of card usage:

a) Named debit cards and prepaid cards can be used to conduct card transactions as agreed between the cardholder and TCPHT;

b) Credit cards can be used to pay for goods and services, withdraw cash as agreed between the cardholder and TCPHT;

c) Anonymous prepaid cards can only be used to pay for goods and services and cannot be used to withdraw cash;

d) Secondary cards issued for secondary cardholders under 15 years old cannot be used to withdraw cash and can only be used to pay for purposes determined in writing between TCPHT and the primary cardholder.

Article 18. Ensuring Safety in the Use of Cards

1. Issuing Credit Institutions (ICIs):

a) Shall be responsible for managing risks when issuing registered card types with the State Bank;

b) Shall disseminate and guide customers on card services, correct usage procedures, potential risks when using cards, and how to handle incidents;

c) Shall implement safety measures and risk prevention for card transactions according to electronic banking risk management principles; ensure information security related to card activities; guarantee the smooth and secure operation of infrastructure and technical systems serving card issuance and payment activities;

d) Shall establish and maintain a 24/7 hotline to promptly receive and process information reported by cardholders;

đ) Shall cooperate with Card Network Operators (CNOs), card switching organizations, and electronic transaction settlement organizations to implement necessary measures to ensure safety in card operations; manage risks associated with other parties according to electronic banking risk management principles;

e) Shall provide information on suspicious fraudulent or counterfeit cards to competent authorities investigating card crimes; check, review, or coordinate with competent authorities to update lists of cards that need to be refused for payment or have suspicious signs for CNOs and Payment Service Providers (PSPs); coordinate with competent authorities and relevant parties in preventing and combating crimes related to card activities and in investigating and handling crimes involving card use as prescribed by law;

g) Shall examine and closely monitor documentation to ensure that card payments and money transfers abroad comply with the purpose, card usage limits, and foreign exchange management regulations;

2. Cardholders and individuals authorized by cardholder organizations must safeguard their cards, keep PINs and other confirmation codes confidential, protect card information and transaction details, and not disclose card information; they shall report and cooperate with ICIs to address situations where cards are lost or there are requests for reviews or complaints;

3. CNOs must cooperate with ICIs, card switching organizations, electronic transaction settlement organizations, PSPs, competent authorities, and other relevant parties in preventing and combating crimes related to card activities;

4. PSPs must fully implement technical procedures and information security measures for cardholders as directed by CNOs and shall be liable for damages if PSPs fail to comply with CNO regulations;

5. When participating in agreements with other organizations regarding card issuance and payment, ICIs and CNOs must agree on the responsibilities of all parties to comply with legal provisions concerning personal data protection, privacy rights, document and card information security, transaction security, and account security of cardholders;

Article 19. Handling in Case of Lost Cards or Disclosure of Card Information

1. When a card is lost or card information is disclosed, the cardholder must immediately notify the ICI;

2. Upon receiving notification from the cardholder, the ICI must immediately lock the card and cooperate with relevant parties to take necessary operational measures to prevent potential losses, while also informing the cardholder. The ICI must complete the handling of received notifications within five working days for cards with BINs issued by the State Bank or ten working days for cards with BINs issued by the CNO from the date of receipt of the cardholder's notification;

3. In cases where cards are misused causing damage, the ICI and cardholder shall determine responsibility and negotiate resolution methods. If both parties cannot reach an agreement, the resolution shall be carried out according to legal provisions.

Article 20. Review and handling complaints during the use of cards

1. When discovering errors or suspecting errors in card transactions, the cardholder has the right to request the Issuing Bank to review.

2. The Issuing Bank shall specify the time limit for the cardholder to send a review request to the Issuing Bank, which must be no less than 60 days from the date the transaction requiring review occurred.

3. The Issuing Bank is responsible for resolving the cardholder's review requests and replying to the cardholder within the agreed period by the parties involved, in accordance with the provisions of the law. In cases involving the Card Network Operator, the Issuing Bank must immediately notify the Card Network Operator and cooperate with the Card Network Operator and other relevant parties to resolve the issue. The Card Network Operator is responsible for responding to the cardholder's review requests within a maximum of five working days for transactions through ATMs located in Vietnam issued by the Issuing Bank in Vietnam, and ten working days for transactions through POS/mPOS located in Vietnam issued by the Card Network Operator; or according to the agreement between the parties involved for other transactions from the date of receipt of the request from the Issuing Bank.

4. If the cardholder disagrees with the Issuing Bank's response to the review, the cardholder has the right to sue the Issuing Bank in accordance with the law.

 

Chapter IV

PAYMENT AND SETTLEMENT OF CARD TRANSACTIONS

Article 21. Organizations authorized to process card payments

1. Commercial banks, cooperative banks, and foreign bank branches may process card payments when providing card services as recorded in the License or Supplementary License (if applicable) issued by the State Bank.

2. Policy banks may process card payments in accordance with the regulations of the Government and the Prime Minister.

3. Card Network Operators permitted to conduct foreign exchange operations may provide card payment services with BINs issued by the Central Bank.

Article 22. Card Payment Organizations

1. The Card Network Operator must cooperate with relevant parties to establish procedures and processes for card payments, clearly defining the steps for processing card transactions and the responsibilities of each party, ensuring compliance with this Circular and current regulations on electronic banking activities; managing, operating, and ensuring the safety and continuous operation of equipment serving card payments.

2. Processing card payment transactions:

a) In cases where the Card Network Operator is also the Issuing Bank, the Card Network Operator is responsible for implementing all steps in processing transactions and resolving any issues arising during card payments.

b) In cases where the Card Network Operator is not also the Issuing Bank, the processing of transactions is carried out based on agreements between the Card Network Operator and the Switching Organization, the Issuing Bank, the Central Bank, and other relevant parties regarding the procedures and processes for card payments.

3. Responsibilities of the Card Network Operator towards Merchant Service Providers:

a) Establishing, negotiating, and signing card payment contracts with Merchant Service Providers;

b) Organizing the installation of card acceptance equipment at sales points, establishing connection lines and other technical conditions serving card payments;

c) Guiding Merchant Service Providers on using card acceptance equipment at sales points, the procedures and processes for card payments, measures to detect fraud and counterfeiting, and security requirements for cardholder information in card payments;

d) Receiving and processing review and complaint requests from Merchant Service Providers;

đ) Supervising Merchant Service Providers in fulfilling the contents of signed card payment contracts and maintaining card payment conditions; if detecting that Merchant Service Providers charge additional fees from cardholders, the Card Network Operator must take appropriate measures and report to competent state authorities.

4. The Card Network Operator must display the name (abbreviated name or trade mark) of the switching organization of which the Card Network Operator is a member on its ATMs and POS at Merchant Service Providers.

5. The Card Network Operator shall not discriminate between card payments with BINs issued by the State Bank and card payments with BINs issued by the Central Bank; shall not agree with other organizations to limit or prevent the acceptance of co-branded card transactions.

6. The Card Network Operator must provide complete and accurate information and documents about card payments to the State Bank upon request.

Article 23. Accepting Units for Cards

1. The accepting units for cards must publicly display that they do not discriminate in prices or charge additional fees for transactions using cards compared to cash payments. The accepting units for cards must refund or have the Card Issuing and Payment Organizations (CIPOs) refund the cardholders the difference in price or additional fees charged in violation of regulations.

2. The accepting units for cards must comply with contracts signed with CIPOs.

3. The accepting units for cards have the right to request CIPOs to review and lodge complaints regarding transactions with errors or suspected errors, and to claim compensation according to the law.

Article 24. Card Switching Organizations, Electronic Settlement of Card Transactions

1. The switching and electronic settlement of card transactions between Payment Service Providers (PSPs), CIPOs for card transactions with BINs issued by the State Bank shall be carried out through card switching organizations and electronic settlement organizations of card transactions licensed by the State Bank.

2. The switching of card transactions with BINs issued by International Card Organizations (ICOs) between PSPs, CIPOs, and ICOs must be conducted through a gateway operated by a card switching organization licensed by the State Bank.

3. The electronic settlement of card transactions with BINs issued by ICOs shall be carried out according to agreements between PSPs, CIPOs, and relevant parties.

4. Card switching organizations and electronic settlement organizations of card transactions shall agree with member organizations participating on standards, rules, operational procedures, and other provisions regarding card switching and electronic settlement of card transactions in accordance with the law.

5. Card switching organizations and electronic settlement organizations of card transactions shall directly connect their systems with PSPs, CIPOs, and ICOs according to agreements among the parties, ensuring safe and continuous provision of card switching services and other services to participating member organizations and ICOs.

Article 25. International Card Organizations

1. ICOs shall enter into agreements with card switching organizations licensed by the State Bank to implement the provisions of Clause 2, Article 24 of this Circular.

2. ICOs may not impose restrictions on PSPs, CIPOs for the purpose of:

a) Unfair treatment of brands printed on cards of affiliated or cooperative card issuance organizations;

b) Limiting the choice of card switching organizations of accepting units for cards through fee or other obligations.

Article 26. Settlement of Results from Card Transaction Settlement

Financial obligations arising from the settlement of card transactions between PSPs, CIPOs must be settled at an organization permitted by the State Bank.

Article 27. Refusal to Process Card Payments

1. PSPs, CIPOs, and accepting units for cards must refuse to process card payments in the following cases:

a) Using cards to conduct prohibited card transactions as stipulated in Article 8 of this Circular;

b) Cards reported lost by the cardholder;

c) Cards expired;

d) Cards locked.

2. PSPs, CIPOs, and accepting units for cards may refuse to process card payments according to agreements in the following cases:

a) Insufficient balance in the payment account, credit limit, or overdraft limit (if applicable) to cover the payment amount;

b) The cardholder violates the provisions of PSPs in agreements between the cardholder and PSPs leading to the refusal of card payments.

3. PSPs are responsible for notifying in writing or data messages about the cases specified in Clause 1 and Clause 2 of this Article to CIPOs; CIPOs are responsible for relaying the notification to accepting units for cards.

4. Notifications of refusal to process card payments take effect from the time the transaction party receives the written notice or data message. After receiving the notification, if the party still processes the card payment and causes the card to be misused, responsibility will be determined by agreement among the parties.

 

Chapter V

REPORTING, INFORMATION DISCLOSURE AND VIOLATION HANDLING

Article 28. Reporting

1. Payment Card Issuing Organizations (TCPHT), Payment Card Processing Organizations (TCTTT), card switching organizations, and electronic transaction settlement organizations shall report periodically according to the statistical reporting system and regulations of the State Bank.

2. When issuing internal regulations on card issuance and payment, TCPHT and TCTTT must submit them to the State Bank for monitoring and supervision.

3. At least 15 days before implementing card service fee schedules (new issuance or adjustment, supplementation), TCPHT must submit their organization's card service fee schedule to the State Bank for monitoring and supervision.

4. TCPHT, TCTTT, card switching organizations, and electronic transaction settlement organizations shall be responsible for reporting to the State Bank in the following cases:

a) At the specific request of the State Bank of Vietnam to serve state management purposes;

b) When there are unusual developments in card operations that may affect the operation of TCPHT and TCTTT.

Article 29. Provision of Information

1. TCPHT, TCTTT, Non-Bank Financial Institutions (ĐVCNT), card switching organizations, electronic transaction settlement organizations, and Foreign Commercial Banks' Representative Offices (TCTQT) shall be responsible for securing card information, cardholders, and card transactions, and shall only provide information upon request from cardholders, competent state agencies, or as prescribed by law.

2. TCPHT and TCTTT shall agree with each other on sharing information related to card activities in accordance with the provisions of the law.

3. TCTQT shall be responsible for providing information related to card transactions with BINs issued by TCTQT upon request of the State Bank to perform state management functions.

Article 30. Handling Violations

Organizations and individuals violating the provisions of this Circular shall be subject to administrative penalties depending on the nature and severity of the violation; in serious cases, they may be held criminally liable; if damage is caused, compensation must be provided according to the law.

 

Chapter VI

IMPLEMENTING PROVISIONS

Article 31. Responsibilities of Units under the State Bank

1. Payment Department

a) Monitoring and summarizing the implementation situation and advising the Governor of the State Bank to handle difficulties during the implementation of this Circular;

b) Processing registration procedures for card samples; receiving and monitoring notifications of cessation of additional issuance of already issued cards from TCPHT.

Shall serve as the point of contact for receiving, reviewing, and submitting to the competent authority the application files for changing licenses, adding agency payment activities and/or agency service provision activities to the operating license of commercial banks, cooperative banks, foreign bank branches, people's credit funds, and microfinance organizations according to the authority prescribed by the State Bank of Vietnam regarding the issuance and operation of credit institutions and foreign bank branches.

Conducting inspections, audits, and supervision of compliance with the provisions of this Circular, handling violations within their authority, and notifying results to the Payment Department and relevant units.

Article 32. Effectiveness

This Circular takes effect from August 15, 2016, except for the provision in Clause 2 of this Article.

Clause 2 of Article 24 of this Circular takes effect from January 1, 2018.

From the date this Circular takes effect, the following provisions cease to be effective:

a) Decision No. 20/2007/QD-NHNN dated May 15, 2007, of the Governor of the State Bank promulgating the Regulations on the issuance, payment, use, and provision of support services for bank card activities;

b) Decision No. 32/2007/QD-NHNN dated July 9, 2007, of the Governor of the State Bank regarding the limit of balance for anonymous prepaid cards;

c) Article 3 of Circular No. 23/2011/TT-NHNN dated August 31, 2011, of the Governor of the State Bank on the implementation of plans to simplify administrative procedures in the payment activities sector and other sectors according to the Government Resolution on simplifying administrative procedures within the scope of the State Bank of Vietnam's management functions.

Article 33. Implementation Organization

The Head of the Office, Heads of the Payment Department, Heads of relevant units under the State Bank of Vietnam, Governors of the State Bank branches in provinces and centrally-administered cities, Chairmen of the Board of Directors, Chairmen of the Board of Members, General Managers (Directors) of credit institutions, foreign commercial banks' representative offices, card switching organizations, electronic transaction settlement organizations, and other related organizations and individuals are responsible for implementing this Circular./.