Circular No. 30/2016/TT-NHNN Amending and supplementing some Circulars on payment service provision activities and payment intermediary service provision

CIRCULAR

Amending and supplementing certain Circulars on payment service activities and payment intermediary servicespayment and payment intermediary services

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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;

On the basis of the Law on Transferable Instruments No. 49/2005/QH11 dated November 29, 2005;

BASED ON DECREE NO. 16/2017/NĐ-CP DATED FEBRUARY 17, 2017 OF THE GOVERNMENT ON THE FUNCTIONS, TASKS, POWERS, AND ORGANIZATIONAL STRUCTURE OF THE STATE BANK OF VIETNAM; THE GOVERNOR OF THE STATE BANK OF VIETNAM ISSUES THIS CIRCULAR TO AMEND AND SUPPLEMENT CERTAIN PROVISIONS OF CIRCULAR NO. 36/2012/TT-NHNN DATED DECEMBER 28, 2012 ISSUED BY THE GOVERNOR OF THE STATE BANK OF VIETNAM ON EQUIPMENT, MANAGEMENT, OPERATION, AND SAFETY GUARANTEE OF AUTOMATED TELLER MACHINE (ATM) OPERATIONS. ARTICLE 1. AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF CIRCULAR NO. 36/2012/TT-NHNN DATED DECEMBER 28, 2012 ISSUED BY THE GOVERNOR OF THE STATE BANK OF VIETNAM ON EQUIPMENT, MANAGEMENT, OPERATION, AND SAFETY GUARANTEE OF AUTOMATED TELLER MACHINE (ATM) OPERATIONS (HEREINAFTER REFERRED TO AS CIRCULAR NO. 36/2012/TT-NHNN). "2. Within 10 working days before the implementation, installation, relocation, change in operating hours, or cessation of ATM operations, organizations providing payment services must notify the State Bank of Vietnam branch in the province or centrally-administered city where the ATM is located (hereinafter referred to as the State Bank branch) according to Model No. 1 (for fixed ATMs) or Model No. 2 (for mobile ATMs) issued together with this Circular.;

On the basis of 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 to amend and supplement certain Circulars on payment service activities and payment intermediary services.

Article 1. Amending and supplementing certain Articles of Circular No. 19/2016/TT-NHNN dated June 30, 2016 of the Governor of the State Bank of Vietnam on bank card activities

1. Amending Clause 2 of Article 10 as follows:

"2. Prior to issuing a new type of card or changing the design of an already issued card, the Payment Card Issuing Organization shall notify the State Bank of Vietnam about the card design according to the form attached to this Circular."

2. Amending and supplementing Point n of Clause 1 of Article 13 as follows:

"n) Methods for receiving dispute resolution requests and complaints; time limit for handling dispute resolution requests and complaints and the processing of dispute resolution results and complaint results as stipulated in Article 20 of this Circular;"

3. Supplementing Point o to Clause 1 of Article 13 as follows:

"o) Force majeure cases."

4. Amending Point a of Clause 1 of Article 18 as follows:

"a) Shall bear responsibility for managing risks when issuing various types of cards;"

5. Amending and supplementing Clause 2 of Article 20 as follows:

"2. The Payment Card Issuing Organization shall specify the period during which cardholders have the right to request dispute resolution and complaints against the Payment Card Issuing Organization; this period shall not be less than 60 days from the date of occurrence of the transaction for which the dispute resolution or complaint is requested."

6. Supplementing Clauses 2a, 2b, and 2c to Article 20 as follows:

"2a. The Payment Card Issuing Organization must apply at least two methods to receive dispute resolution and complaint information from cardholders, including through a call center (with recording, operating 24 hours a day, 7 days a week) and through the organization's transaction points; ensuring verification of basic information provided by the cardholder to the Payment Card Issuing Organization.

2b. The Payment Card Issuing Organization must immediately take measures to lock the card when the cardholder requests it due to suspicion of fraud or loss and shall be responsible for all financial losses incurred by the cardholder after the card is locked.

2c. The Payment Card Issuing Organization shall develop a model form for requesting dispute resolution and complaints for cardholders to use when making such requests. In case of receiving information through a call center, the Payment Card Issuing Organization must require the cardholder to provide the dispute resolution and complaint request form within the time limit set by the Payment Card Issuing Organization as the basis for officially handling the dispute resolution and complaint request. In case of authorizing another person to make the request, the cardholder shall comply with the provisions of the law on authorization."

7. Amend and supplement Clause 3 of Article 20 as follows:

"3. The Payment Card Issuing Organization shall be responsible for resolving dispute resolution and complaint requests and providing the results of dispute resolution and complaints to the cardholder within the following time limits:

a) For cards with BIN issued by the State Bank of Vietnam, the time limit for handling dispute resolution and complaint requests must be specifically agreed upon with customers in the card issuance and usage contract and shall not exceed 45 working days from the date of the first receipt of the dispute resolution and complaint request from the cardholder according to one of the reception methods specified in Clause 2a of this Article;

b) For cards with BIN issued by the Card Network Operator, the time limit for handling dispute resolution and complaint requests must be specifically agreed upon with customers in the card issuance and usage contract."

8. Supplementing Clauses 3a and 3b to Article 20 as follows:

"3a. Handling the results of dispute resolution and complaints:

a) Within a maximum of five working days from the date of notification of the results of dispute resolution and complaints to the customer, the Payment Card Issuing Organization shall compensate the cardholder according to the agreement and current laws for losses arising that are not due to the fault of the cardholder and/or do not fall under the force majeure cases agreed upon in the contract. In the event of losses arising due to the fault of related parties (Card Transaction Processor, card switching organization, Card Network Operator, Card Issuer), the party at fault shall compensate the Payment Card Issuing Organization according to the agreement between the parties in accordance with the law;

b) In the event that the deadline for handling dispute resolution and complaint requests as agreed upon in the card issuance and usage contract has expired without determining the cause or fault of any party, within the next fifteen working days, the Payment Card Issuing Organization shall negotiate with the cardholder on a resolution plan or temporarily compensate the cardholder for losses until a final conclusion is reached by the competent authority.

3b. In cases where there are signs of criminal offenses, the Payment Card Issuing Organization shall report to the competent state authorities in accordance with the law on criminal procedure and report to the State Bank of Vietnam (Payment Department, State Bank of Vietnam branch in the locality); simultaneously, notify the cardholder in writing about the status of dispute resolution and complaint handling. The resolution of dispute resolution and complaint results falls under the responsibility of the competent state authorities. In the event that the competent state authority reports that there are no criminal elements, within fifteen working days from the date of the conclusion of the competent state authority, the Payment Card Issuing Organization shall negotiate with the cardholder on the resolution of dispute resolution and complaint results."

9. Amending Clause 4 of Article 20 as follows:

"4. In the event that the Payment Card Issuing Organization, cardholder, and related parties cannot reach an agreement or disagree with the dispute resolution and complaint handling process, the resolution of disputes shall be carried out in accordance with the law."

10. Amending Point b of Clause 1 of Article 31 as follows:

"b) Receiving and monitoring notifications about the issuance of new card designs and notifications to stop issuing additional previously issued cards from Payment Card Issuing Organizations."

11. Abolishing Article 11 of Circular No. 19/2016/TT-NHNN dated June 30, 2016 of the Governor of the State Bank of Vietnam on bank card activities.

12. Replacing the Appendix accompanying Circular No. 19/2016/TT-NHNN dated June 30, 2016 of the Governor of the State Bank of Vietnam on bank card activities with the Appendix accompanying this Circular.

Article 2. Amend and supplement some articles of Circular No. 22/2015/TT-NHNN dated November 20, 2015 of the Governor of the State Bank of Vietnam on check supply and usage activities.

1. Add Point d and đ to Clause 4, Article 11 as follows:

"d) Specify the method for receiving requests for review and complaint; the time limit for handling such requests and the processing of the results of review and complaint according to Clause 7a of this Article;

đ) Cases of force majeure."

2. Amend Clause 7, Article 11 as follows:

"7. Organizations supplying checks must guide customers in using the check payment service provided by them."

3. Add Clause 7a to Article 11 as follows:

"7a. Organizations supplying checks shall be responsible for handling customer requests for review and complaint regarding the following services:

a) Apply at least two methods to receive information for review and complaint, including through a call center (with recording) and at business points of the check-supplying organization; ensure the verification of basic information provided by customers to the check-supplying organization;

b) Develop a form for requesting review and complaint for customers to use when making such requests. In cases where information is received through the call center, the check-supplying organization requires customers to submit the request form within the time limit set by the organization as the basis for officially handling the request for review and complaint. In cases where a third party is authorized to make the request for review and complaint, customers must comply with the relevant laws on authorization;

c) Specifically stipulate the time period during which customers have the right to request review and complaint; this period shall not be less than 60 days from the date of presenting the check for payment as specified in Article 19 of this Circular;

d) The time limit for handling requests for review and complaint shall not exceed 30 working days from the date of the first receipt of the request for review and complaint from the customer through one of the reception methods specified in point a of this clause;

đ) Process the results of review and complaint:

- Within a maximum of five working days from the date of notifying the result of review and complaint to the customer, the check-supplying organization shall compensate the customer's loss according to the agreement and current laws for losses arising that are not due to the customer's fault and/or do not fall under the agreed force majeure conditions for check usage;

- In cases where the review and complaint handling period specified in point d of this clause has expired without determining the cause or fault of either party, within the next fifteen working days, the check-supplying organization shall negotiate with the customer about the resolution of the review and complaint results;

e) In cases where there are signs of criminal activity, the check-supplying organization shall report to the competent state agency according to the provisions of the Criminal Procedure Law and report to the State Bank of Vietnam (Payment Department, State Bank of Vietnam branch in the province/city where the incident occurred); simultaneously, notify the customer in writing about the status of the review and complaint request. The resolution of the review and complaint results falls under the responsibility of the competent state agency. If the competent state agency reports that there are no criminal elements, within fifteen working days from the date of the agency's conclusion, the check-supplying organization shall negotiate with the customer about the resolution of the review and complaint results;

g) In cases where the check-supplying organization, customers, and related parties cannot reach an agreement or do not agree with the process of handling the request for review and complaint, the dispute resolution shall be carried out according to the provisions of the law."

1. Amend and supplement item 4 point a Clause 1 Article 13 as follows:

"- The method of receiving requests for review and complaint; the time limit for handling requests for review and complaint and the handling of the results of review and complaint in accordance with points d, d1, d2, d3, d4, đ, đ1 and đ2 of this clause;"

2. Supplement item 5 to point a Clause 1 Article 13 as follows:

"- Force majeure cases;"

3. Amend and supplement point d Clause 1 Article 13 as follows:

"d) Apply at least two methods of receiving review and complaint information including through a call center (with recording, operating 24/24 hours a day and 7/7 days a week) and through the headquarters/branch of the service provider; ensure verification of basic information that customers have provided to the service provider;"

4. Supplement points d1, d2, d3 and d4 to Clause 1 Article 13 as follows:

"d1) Develop a model form for requesting review and complaint for customers to use when requesting review and complaint. In case of receiving information through a call center, the service provider must request customers to submit the model form for requesting review and complaint within the time limit specified by the service provider as the main basis for processing the request for review and complaint. In case of authorizing another person to request review and complaint, the customer shall comply with the provisions of the law on authorization;

d2) Specify the specific period during which customers have the right to request review and complaint; this period shall not be less than 60 days from the date of occurrence of the transaction subject to review and complaint;

d3) Immediately implement measures to suspend service provision when the customer requests due to suspicion of fraud or loss and bear responsibility for all financial losses incurred to the customer arising from the use of the service after the suspension of service provision;

d4) The time limit for handling requests for review and complaint shall not exceed 45 working days from the date of the first receipt of the customer's request for review and complaint according to one of the reception methods stipulated in point d of this clause;"

5. Amend and supplement point đ Clause 1 Article 13 as follows:

"đ) Handling the results of review and complaint:

- Within the maximum period of five working days from the date of notifying the result of review and complaint to the customer, the service provider shall implement compensation for the customer's loss in accordance with the agreement and current laws regarding losses arising from the customer's fault and/or not falling under force majeure cases as agreed upon in the terms and conditions of service use;

- In case the deadline for handling review and complaint as stipulated in point d4 Clause 1 of this article has expired without determining the cause or fault of either party, within the following 15 working days, the service provider shall agree with the customer on a resolution plan or temporarily compensate the customer's loss until the final conclusion of the competent authority clarifying the fault and responsibility of the parties;"

6. Supplement points đ1 and đ2 to Clause 1 Article 13 as follows:

"đ1) In case the matter indicates criminal activity, the service provider shall notify the competent state agency in accordance with the law on criminal procedure and report to the State Bank (Payment Department, State Bank branch in the locality). At the same time, notify the customer in writing about the status of handling the request for review and complaint. The handling of the results of review and complaint falls under the responsibility of the competent state agency. In case the competent state agency notifies the resolution without criminal elements, within 15 working days from the date of the conclusion of the competent state agency, the service provider shall agree with the customer on a resolution plan for the results of review and complaint;

đ2) In case the service provider, customer, and related parties cannot reach an agreement and/or disagree with the process of handling the request for review and complaint, the dispute resolution shall be carried out in accordance with the law;"

Article 4. Repeal point a Clause 3 Article 11 of Circular No. 36/2012/TT-NHNN dated December 28, 2012 of the Governor of the State Bank regulating the equipping, management, operation, and ensuring the safety of automatic teller machine operations

Article 5. Effective Date

This Circular shall take effect from November 28, 2016.

Article 6. Transitional Provisions

For contracts and agreements signed before the effective date of this Circular, the payment service providers and payment intermediary service providers shall have the responsibility to notify customers about new regulations related to the reception and handling of requests for review and complaint through the forms stipulated in the contract and agreement and on their official websites; re-sign contracts and agreements when requested by the customer. Any amendments and supplements to signed contracts must comply with the provisions of this Circular.

Article 7. Implementation Organization

The Director of the Office, Heads of the Payment Department, Heads of units under the State Bank, Governors of the State Bank branches in centrally governed cities and provinces, Chairmen of the Management Boards (Board Members), General Directors (Directors) of payment service providers, payment intermediary service providers, and other relevant organizations and individuals are responsible for organizing the implementation of this Circular./.