Circular No. 46/2014/TT-NHNN guiding non-cash payment services

CIRCULAR

Guidelines on cashless payment services

___________________

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

Pursuant to the Law on Credit Organizations No. 47/2010/QH12 dated June 16, 2010;

||| Pursuant to Decree No. 63/2018/NĐ-CP dated May 4, 2018 of the Government on public-private partnership investment;

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;

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 issues the Circular guiding cashless payment services.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular guides cashless payment services (hereinafter referred to as payment services) provided through payment service providers, including the following services: single transaction payments through settlement accounts opened at the State Bank of Vietnam (hereinafter referred to as the State Bank); payment orders, mandate payments; collection orders, mandate collections; money transfers; collections on behalf; payments on behalf.

2. The provision of the following payment services shall be carried out in accordance with specific regulations of the State Bank:

a) Inter-bank payments through payment systems organized, managed, and operated by the State Bank;

b) Cheque payments, bank card payments through payment service providers.

3. The provision of international payment services by payment service providers shall be implemented in accordance with laws on foreign exchange management, international treaties to which the Socialist Republic of Vietnam is a member, and commercial practices stipulated in Clause 4, Article 3 of the Law on Credit Institutions agreed upon by the parties.

Article 2. Applicability

1. Payment service providers include:

a) The State Bank;

b) Commercial banks, policy banks, cooperative banks, branches of foreign banks (hereinafter referred to as banks);

c) People's Credit Funds, microfinance organizations.

2. Payment intermediary service providers.

3. Organizations and individuals using payment services.

Article 3. Explanation of Terms

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

1. Payment vouchers are a type of banking accounting documents used as a basis for implementing payment services.

2. Electronic transaction payment services involve the creation, sending, and processing of payment orders through electronic means.

3. Mandate payment services (hereinafter collectively referred to as mandate payment services) involve banks executing the payer's request to deduct a certain amount from the payer's settlement account to pay or transfer funds to the beneficiary. The beneficiary may be the payer.

4. Mandate collection services (hereinafter collectively referred to as mandate collection services) involve banks executing the beneficiary's request to collect a certain amount from the payer's settlement account and transfer it to the beneficiary based on a written agreement between the payer and the beneficiary regarding the mandate collection.

5. Collection services involve payment service providers executing the beneficiary's mandate to collect funds from the payer based on a written agreement between the payment service provider and the beneficiary.

6. Payment services on behalf involve payment service providers executing the payer's mandate to make payments on behalf of the payer to the beneficiary based on a written agreement between the payment service provider and the payer.

7. Money transfer services involve payment service providers executing the payer's request to transfer a certain amount to the beneficiary. The beneficiary may be the payer. Money transfer services include transfers through settlement accounts and non-settlement accounts of customers.

Article 4. Payment vouchers

1. Payment vouchers must be established, signed, controlled, circulated, managed, used, and stored in accordance with the regulations on accounting voucher systems of banks and consistent with the provisions of this Circular.

2. Payment vouchers used for transactions through the State Bank shall comply with the State Bank's regulations on format, forms, printing, issuance, and usage.

3. Payment vouchers used for transactions through banks, credit cooperatives, and microfinance organizations shall be regulated by banks, credit cooperatives, and microfinance organizations regarding format, forms, printing, issuance, and implementation guidance to ensure compliance with payment procedures for each type of service as stipulated in this Circular and relevant laws.

4. All information and data of electronic vouchers must be fully controlled to ensure their legality, validity, and integrity. At the same time, vouchers must be controlled and managed securely to prevent and avoid illegal exploitation, intrusion, and copying of information.

Article 5. Electronic means-based payment services

Organizations providing payment services when offering electronic means-based payment services must meet the following requirements:

1. Comply with the legal regulations on the establishment, processing, use, storage, and retention of electronic vouchers in banking activities.

2. Develop payment processes ensuring sufficient information for customer verification, meeting technical infrastructure requirements, managing risks, safety, and security when implementing electronic payment services according to the State Bank's regulations on electronic banking operations.

3. Have written agreements with customers and related parties, clearly defining the rights and obligations of all parties and dispute resolution mechanisms (if any) as prescribed by law.

4. Comply with legal regulations on anti-money laundering.

Article 6. Foreign exchange management regulations in payment services

1. The provision of payment services related to foreign exchange must comply with legal regulations on foreign exchange management.

2. The use of foreign currency in payment services of residents and non-residents; the use of Vietnamese dong in payment services of non-residents and individual foreign nationals residing in Vietnam must follow legal regulations on foreign exchange management.

Chapter II

PAYMENT SERVICES THROUGH

ORGANIZATIONS PROVIDING PAYMENT SERVICES

Article 7. One-time payments through settlement accounts opened at the State Bank

1. Organizations opening settlement accounts at the State Bank (as the payer) submit payment vouchers to the State Bank requesting it to deduct from their own settlement account to pay to the beneficiary having an account at the same State Bank unit or transfer funds to the beneficiary through appropriate payment systems.

2. Payment process:

a) Establishment and receipt of vouchers

- For payments made by the payer itself: the payer establishes and submits payment vouchers (mandate, other appropriate payment vouchers) to the State Bank where the settlement account is opened, requesting a certain amount to be deducted from its account for payment or transfer to the beneficiary.

- For payments made to the payer's customers: the payer bases on customer vouchers to prepare a list of payment vouchers through the State Bank (Annex 01 attached to this Circular) and submits it to the State Bank along with customer payment vouchers. Each list of vouchers is prepared separately for each beneficiary; if the payer and the beneficiary have settlement accounts in different provinces/cities, the list of vouchers must clearly state the beneficiary's account number and beneficiary unit.

b) Processing of vouchers and accounting entries

- Upon receiving payment vouchers submitted by the payer, the State Bank controls the legality and validity of the vouchers; matches the list of vouchers with accompanying vouchers and checks the payer's payment capability.

- After controlling, if the vouchers are invalid, the State Bank informs the payer to correct them or return them to the payer. If the payer lacks payment capability, the State Bank notifies to supplement payment capability or return the vouchers to the payer.

If the vouchers are valid and the payer has sufficient payment capability, the State Bank proceeds with payment and processes:

+ In cases where the payer and the beneficiary have accounts at the same State Bank unit, the State Bank records the transaction in the payer's and beneficiary's settlement accounts, debits the payer's account, and credits the beneficiary's account along with customer payment vouchers (if any).

+ In cases where the payer and the beneficiary do not have accounts at the same State Bank unit, the State Bank records the transaction in the payer's settlement account, debits the payer's account, and issues a transfer order through an appropriate payment system.

- Upon receiving a transfer order, after controlling and processing the vouchers according to the payment system regulations, the State Bank records the transaction in the beneficiary's settlement account (or an appropriate account if the beneficiary does not have a settlement account at the State Bank) and credits the beneficiary's account.

Article 8. Collection Mandate Payment Services

1. The collection mandate payment voucher shall include the following main elements:

a) Payment order (or collection mandate) wording, voucher number;

b) Date of issuance of the collection mandate;

c) Name, address, account number for settlement of the payer;

d) Serving bank name of the payer;

đ) Name, address, account number for settlement of the payee;

e) Serving bank name of the payee;

g) Payment content;

h) Payment amount in words and figures;

i) Date of issuance of the collection mandate with payment validity;

k) Signature (manual signature for paper vouchers and electronic signature for electronic vouchers) of the account holder or authorized representative and signatures of relevant persons according to legal provisions; unit seal (if any).

Banks may add additional elements on the collection mandate as necessary to meet management requirements and specific operational characteristics of their units, but must ensure compliance with legal regulations.

2. Collection Mandate Payment Process:

Banks establish and issue internal procedures for implementing collection mandate payments, ensuring prompt, accurate, safe processing, and including the following steps:

a) Issuance and receipt of collection mandates

The payer issues the collection mandate to the serving bank (where the settlement account is opened) to deduct funds from the account to pay the payee. The bank guides customers on issuing and methods of delivering collection mandates at its own unit, ensuring compliance with this Circular and current regulations of the State Bank of Vietnam.

b) Control of collection mandates

Upon receiving the collection mandate, the bank must strictly control to ensure the legality and validity of the voucher, specifically:

- For paper vouchers: The voucher must be fully and strictly controlled according to the State Bank of Vietnam's regulations on accounting voucher systems, wherein: The voucher must be issued according to the correct format, with sufficient copies for accounting and storage. The voucher must clearly and accurately record all elements, match the content between all copies, and have sufficient signatures and seals (if any) of the customer and bank on all copies. The customer's signature and seal (if any) on the voucher must match the registered sample at the bank where the account is opened.

- For electronic vouchers: The bank must control the content and technical information (electronic signature, legitimacy of data originator, type, format of data, voucher code, etc.) of the voucher according to the regulations on electronic vouchers.

- The bank must check the balance on the settlement account and the payer's ability to settle.

If the collection mandate is not legal, valid, or does not guarantee the payer's ability to settle, the bank will notify the payer to amend, supplement, or return it to the payer.

c) Processing of vouchers and accounting entries

- At the bank serving the payer:

After controlling, if the collection mandate is legal, valid, and guarantees the payer's ability to settle, then process:

+ If both the payee and payer have accounts at the same bank, within the latest one working day from the time of receiving the collection mandate from the customer (except in cases of other agreements), the bank shall make accounting entries into the settlement accounts of the payer and payee, report Debit to the payer, and Credit to the payee.

+ If the payee does not have an account at the bank serving the payer, within the latest one working day from the time of receiving the collection mandate from the customer (except in cases of other agreements), the bank shall make accounting entries into the settlement account of the payer, report Debit to the payer, and issue a transfer order to the bank serving the payee through an appropriate settlement system.

- At the bank serving the payee:

After receiving the transfer order from the bank serving the payer, the bank serving the payee proceeds to control the voucher and process:

+ If the transfer order is legal and valid, within the latest one working day from the time of receiving the transfer order, the bank serving the payee must make accounting entries into the payee's settlement account and Credit to the payee.

+ If the transfer order has errors, within the latest one working day from the time of receiving the transfer order, the bank serving the payee sends a request for review or return of the transfer order to the bank serving the payer. Upon receiving the review response, within the maximum one working day, the bank serving the payee executes the transfer order or returns the transfer order to the bank serving the payer.

+ If the payee's account is closed, within the latest one working day from the time of receiving the transfer order, the bank serving the payee returns the transfer order to the bank serving the payer.

- In case the payee does not have a settlement account at the bank:

Upon receiving the transfer order, within the latest one working day, the bank controls the voucher, makes accounting entries into the appropriate account, and notifies the payee. In case the payee receives cash, handle as follows:

+ If the payee is an individual, when collecting the money, the customer must present a valid identity card, passport, or other lawful substitute documents (hereinafter referred to as personal identification documents). In the case of an authorized person collecting the money, they must also present a valid power of attorney according to legal provisions. If the payee is an organization, the representative of the organization collecting the money must present personal identification documents and proof of lawful representation for the organization.

+ Within a maximum of 15 days from the date of receiving the transfer order, if the payee has been notified by the bank but does not come to collect the money or the bank cannot contact the payee, the bank must issue a transfer order to return the money to the bank serving the payer.

d) The bank shall promptly and fully report Debits and Credits to customers according to the agreed method and timing of reporting Debits and Credits between the bank and the customer, in accordance with legal regulations.

Article 9. Collection Mandate Payment Service

1. The collection mandate payment voucher shall include the following main elements:

a) The word "collection" (or "mandate"), voucher number;

b) Date of issuance of the collection mandate payment voucher;

c) Name, address, account number for settlement of the beneficiary;

d) Name of the bank serving the beneficiary;

đ) Name, address, account number for settlement of the payer;

e) Name of the bank serving the payer;

g) Contract number (or order, agreement) serving as the basis for collection, number of accompanying vouchers;

h) Payment details;

i) Amount to be collected in words and figures;

k) Date of settlement by the bank serving the payer;

l) Date of receipt of the payment by the bank serving the beneficiary;

m) Signature (manual signature for paper vouchers and electronic signature for electronic vouchers) of the account holder or authorized representative and signatures of other relevant parties according to the provisions of the law; stamp of the unit (if applicable).

Banks may add additional elements to the collection mandate payment as necessary for management requirements and specific operational characteristics of their units, but must ensure compliance with the provisions of the law.

2. Collection Mandate Payment Settlement Process:

Banks establish and issue internal procedures for implementing collection mandate payment settlements, ensuring prompt, accurate, safe, and complete processing of the following steps:

a) Issuance and receipt of collection mandates

The beneficiary issues the collection mandate along with the agreement between the payer and the beneficiary regarding the collection mandate and any other supporting documents (if any) to the bank serving them or the bank serving the payer. The bank guides customers on the issuance and method of delivering the voucher in accordance with the provisions of this Circular and current regulations of the State Bank.

b) Monitoring of collection mandates

- At the bank serving the beneficiary: Upon receiving the collection mandate and accompanying documents from the customer, the bank must strictly monitor to ensure the legality and validity of the collection mandate in accordance with the accounting voucher system regulations for banks. If the collection mandate is not legal or valid, the bank will notify the customer to make corrections, supplements, or return it to the customer.

- At the bank serving the payer: Upon receiving the collection mandate payment settlement file, the bank conducts monitoring of the legality and validity of the collection mandate and checks the balance in the payer's settlement account and the payer's ability to settle.

If there are errors in the collection mandate, within the latest one working day from the date of receipt of the collection mandate, the bank serving the payer sends a request for review or returns the collection mandate to the bank serving the beneficiary or the beneficiary. If the payer's account has been closed, within the latest one working day from the date of receipt of the collection mandate, the bank serving the payer returns the collection mandate to the bank serving the beneficiary or the beneficiary.

c) Processing of vouchers and accounting entries

- In cases where the payer has a settlement account at the bank serving the beneficiary:

After monitoring the collection mandate, the bank verifies the agreement between the payer and the beneficiary for settlement through the collection mandate and processes:

+ In cases where the payer has authorized the bank to automatically deduct funds from the payer's settlement account to settle the collection mandate:

If the payer ensures the ability to settle, within the latest one working day from the date of receipt of the collection mandate, the bank must record in the payer's and beneficiary's settlement accounts, report a debit to the payer, and report a credit to the beneficiary.

If the payer does not ensure the ability to settle, within the latest one working day from the date of receipt of the collection mandate, the bank must inform the payer and the beneficiary and return the collection mandate to the beneficiary (if requested by the beneficiary) or retain the collection mandate until the payer ensures the ability to settle and process accordingly.

+ In cases where the payer has not authorized the bank to automatically deduct funds from the payer's settlement account to settle the collection mandate, the bank must notify the collection mandate to the payer.

If the payer agrees to authorize the deduction from the settlement account, within the latest one working day from the date of receipt of the authorization to deduct from the payer, the bank proceeds to process and record in the payer's and beneficiary's settlement accounts, reporting a debit to the payer and a credit to the beneficiary.

If the payer does not agree to authorize the deduction, the bank immediately notifies and returns the collection mandate to the beneficiary.

+ The form of authorization for automatic deduction from the settlement account is determined by the bank in accordance with the provisions of the law on authorization.

- In cases where the payer does not have a settlement account at the bank serving the beneficiary:

+ After monitoring the legality and validity of the collection mandate, the bank serving the beneficiary uses an appropriate method to track processed vouchers and, within the latest one working day from the date of receipt of the collection mandate, sends it to the bank serving the payer.

+ Upon receiving the collection mandate and accompanying documents (if any) sent by the bank serving the beneficiary or the beneficiary, after monitoring the legality and validity of the collection mandate, the bank serving the payer verifies the authorization for automatic deduction from the settlement account and proceeds to process and record in the payer's settlement account as if the payer had a settlement account at the bank serving the beneficiary; simultaneously issuing a transfer order to the bank serving the beneficiary through an appropriate payment system.

+ Upon receiving the transfer order from the bank serving the payer, within the latest one working day, the bank serving the beneficiary bases the transfer order to record in the appropriate account and report a credit to the beneficiary.

d) The bank shall promptly and fully report Debits and Credits to customers according to the agreed method and timing of reporting Debits and Credits between the bank and the customer, in accordance with legal regulations.

Article 10. Collection Services and Payment Services on Behalf

1. To provide collection services, the beneficiary must provide the payment service provider with necessary documents and texts as conditions for the payment service provider to collect money on behalf of the beneficiary in accordance with the content of the agreement between the payment service provider and the beneficiary and in compliance with relevant laws.

2. For payment services on behalf, the payment service provider shall implement according to the requirements of the payer stipulated in the agreement between the payment service provider and the payer and in compliance with relevant laws.

3. The payment service provider shall establish and issue internal procedures to provide collection services and payment services on behalf to customers in accordance with relevant legal provisions.

Article 11. Transfer Services

1. The process of transfer services through customer settlement accounts shall be carried out as the process of payment mandate services.

2. The process of transfer services not through customer settlement accounts:

Banks shall establish and issue internal procedures for transfer services not through customer settlement accounts, ensuring prompt, accurate, secure, and complete processing of the following steps:

a) Preparation and control of documents:

When customers have the need to deposit cash to request the bank to transfer funds to the beneficiary, the bank shall guide customers to fill out the deposit slip according to the model prescribed by the bank, ensuring all necessary information of the remitter and the beneficiary, including: full name, identification number/passport or other lawful identity confirmation information, phone number, contact address, signature (of the remitter), and other information.

- If the remitter is an individual, when transferring funds, the customer must present identity documents. In case the remitter is an authorized person, the customer must additionally present the power of attorney as prescribed by law. If the remitter represents an organization, in addition to presenting identity documents, they must also present documents proving their lawful representative status for that organization.

- Upon receiving the deposit slip from the customer, the bank shall check and control the documents and proceed to count the cash deposited by the customer to carry out the transfer in accordance with regulations.

b) Processing of vouchers and accounting entries

- At the bank serving the remitter: After controlling valid and lawful documents:

+ In the case where the beneficiary has a settlement account at the bank serving the remitter: no later than one working day from the time the customer completes the deposit procedures, the bank shall record the amount in the appropriate account for the remitter and credit the beneficiary.

+ In the case where the beneficiary has a settlement account at another bank: no later than one working day from the time the customer completes the deposit procedures, the bank shall record the amount in the appropriate account and issue a transfer order to the bank serving the beneficiary through the appropriate payment system.

- At the bank serving the payee:

After receiving the transfer order, the bank serving the beneficiary shall control the documents and process:

+ If the transfer order is valid and lawful, no later than one working day from the time of receipt of the transfer order, the bank serving the beneficiary must record the amount in the beneficiary's settlement account and then credit the beneficiary.

+ If there are errors in the transfer order, no later than one working day from the time of receipt of the transfer order, the bank serving the beneficiary shall cooperate with the bank serving the remitter to conduct an investigation in accordance with regulations. Upon receiving the response to the investigation, within a maximum of one working day, the bank serving the beneficiary shall execute the transfer order or return the transfer order to the bank serving the remitter.

+ If the beneficiary's account is closed, no later than one working day from the time of receipt of the transfer order, the bank serving the beneficiary shall return the transfer order to the bank serving the remitter.

+ In the case where the beneficiary does not have a settlement account at the bank: upon receipt of the transfer order, no later than one working day from the time of receipt of the transfer order, the bank shall control the documents, record the amount in the appropriate account, and must notify the beneficiary. In the case where the beneficiary receives cash, it shall be handled as follows:

If the beneficiary is an individual, when collecting the money, the customer must present identity documents. In the case where the recipient is an authorized person, they must additionally present a power of attorney in accordance with the law. If the beneficiary is an organization, the representative of the organization collecting the money, in addition to presenting identity documents, must also present documents proving their lawful representative status for that organization.

Within a maximum of thirty days from the date of receipt of the transfer order and notification to the beneficiary, if the beneficiary does not come to collect the money or cannot be contacted to notify them of the receipt of the money, the bank serving the beneficiary must issue an order to return the money to the bank serving the remitter.

- The bank shall promptly report credits to customers who open settlement accounts at its own unit in accordance with the agreed method and timing of reporting credits between the bank and the customer, in compliance with legal provisions.

Article 12. Payment services through people's credit funds and microfinance organizations

1. People's credit funds provide non-account payment services to their members. Microfinance organizations provide non-account payment services to their microfinance customers.

2. People's credit funds and microfinance organizations shall establish and issue internal payment procedures for money transfer, collection on behalf, and payment on behalf services without using bank accounts in accordance with Article 10 and Clause 2, Article 11 of this Circular.

Chapter III

RIGHTS AND OBLIGATIONS OF THE PARTIES PARTICIPATING IN PAYMENT SERVICES

PARTICIPATION IN PAYMENT SERVICES

Article 13. Rights of organizations and individuals using payment services

1. To choose to use payment services provided by service providers.

2. To agree with the service provider on rights and obligations when using payment services in accordance with relevant laws.

3. To request the service provider to provide information about the implementation of payment services agreed upon with the service provider.

4. To lodge complaints and demand compensation from the service provider when: the service provider delays transactions beyond the agreement, fails to execute transactions, executes transactions inconsistent with payment orders, charges incorrect types or levels of fees that have been announced by the service provider, or commits other breaches in the agreement.

5. Other rights as prescribed by law.

Article 14. Obligations of organizations and individuals using payment services

1. To comply fully with conditions and procedures for payment services as stipulated in this Circular and agreements between users and service providers in accordance with the law.

2. To refund or cooperate with the service provider to fully refund amounts received in excess or mistakenly transferred (including operational errors or system failures of the service provider).

3. To bear legal responsibility for the accuracy and honesty of payment information and documents they provide.

4. To protect personal account and transaction secrets under their management to ensure security and confidentiality in payment transactions; to promptly notify the service provider if any errors, mistakes, or suspicions of misuse of transaction information are discovered.

5. Not to use payment services for money laundering, terrorist financing, fraud, deception, or other illegal activities.

6. Other obligations as prescribed by law.

Article 15. Rights of payment service providers

1. To request organizations and individuals using payment services to provide complete relevant information and fulfill obligations according to agreements in compliance with the law during the use of payment services.

2. To refuse to provide payment services to organizations and individuals using payment services in the following cases:

a) Organizations and individuals using payment services do not meet all requirements when performing payment services as stipulated in this Circular or violate agreements between the service provider and the user;

b) When there is a written request from competent state agencies or evidence indicating that payment transactions are aimed at money laundering or terrorist financing as prescribed by anti-money laundering laws.

3. To request organizations and individuals using payment services to fully refund amounts received in excess or mistakenly transferred (including operational errors or system failures of the service provider).

4. To charge fees for providing payment services in accordance with the law.

5. Other rights as prescribed by law.

Article 16. Obligations of organizations providing payment services

1. To notify and guide customers on the use of payment services provided by them; to promptly respond to or handle inquiries and complaints from organizations and individuals using payment services within their obligations and authority.

2. To timely, safely, and accurately execute payment transactions according to agreements with organizations and individuals using payment services; to publicly display payment service fees.

3. Organizations providing payment services shall be responsible for promptly correcting any errors or mistakes in payment transactions when they are not carried out according to the payment instructions of organizations and individuals using payment services; they shall cooperate with related organizations providing payment services to recover mistakenly transferred or over-transferred amounts in accordance with the provisions of the law.

4. Organizations providing payment services must comply with the regulations of the law regarding electronic transactions and ensuring safety, confidentiality, and risk management in banking activities.

5. Organizations providing payment services have the obligation to inform and warn customers about risks when using payment services and to strictly adhere to the contents stipulated in the signed agreement with organizations providing payment services; to guide organizations and individuals using payment services on their duty to secure account information, other identifying factors, and electronic means used in payments to prevent exploitation, fraud, and deception.

6. Organizations providing payment services must implement customer identification measures; control, detect, and report large-value transactions, electronic fund transfers, and suspicious transactions to competent state agencies in accordance with laws on preventing and combating money laundering and other relevant laws.

7. Organizations providing payment services shall be liable for compensating losses caused by their own fault in accordance with the law.

8. Responsibilities for cooperation in reviewing between organizations providing payment services:

Organizations providing payment services shall cooperate to promptly address review requests in payment mandates: within one working day, the party receiving the review request must provide the review result to the requesting party.

9. Other obligations as prescribed by law.

Article 17. Obligations of organizations providing payment services when cooperating with organizations providing intermediary payment services

1. When providing payment services involving cooperation with organizations providing intermediary payment services, organizations providing payment services must enter into a written agreement or cooperation contract with the participating parties, clearly defining each party's commitment to customer information confidentiality, payment transactions, and liability for losses due to disclosure of customer information or transactions.

2. Banks may only enter into cooperation contracts with intermediary payment service providers that have been licensed by the State Bank of Vietnam to operate intermediary payment services to perform payment services, while also coordinating with intermediary payment providers in data verification, transaction authentication, customer information, implementing security measures in payments, and other obligations as prescribed by the State Bank of Vietnam regarding intermediary payment services.

Chapter IV

IMPLEMENTING PROVISIONS

Article 18. Effective Date

1. This Circular takes effect from March 1, 2015.

2. This Circular replaces Decision No. 226/2002/QD-NHNN dated March 26, 2002 of the Governor of the State Bank of Vietnam on the issuance of the Regulations on Payment Operations through Payment Service Providers and Decision No. 1092/2002/QD-NHNN dated October 8, 2002 of the Governor of the State Bank of Vietnam on the Procedures for Payment Operations through Payment Service Providers.

Article 19. Implementation

1. The Payment Department shall be responsible for monitoring, inspecting, supervising, and coordinating with related units to resolve issues arising during the implementation of this Circular.

2. Banking inspection and supervision agencies, State Bank of Vietnam branches in provinces and centrally-administered cities shall be responsible for inspecting and supervising compliance with the provisions of this Circular and handling violations according to their authority.

3. Organizations providing payment services shall base their internal procedures for non-cash payment services on the provisions of this Circular and submit these internal procedures to the State Bank of Vietnam (Payment Department) immediately upon issuance.

4. The Director of the Office, Heads of the Payment Department, Directors of Banking Inspection and Supervision, and Heads of units under the State Bank of Vietnam, State Bank of Vietnam branches in provinces and centrally-administered cities, Chairmen of Management Boards (Boards of Members), General Managers (Directors) of organizations providing payment services are responsible for enforcing this Circular./.