Decision No. 04/VBHN-NHNN dated April 28, 2014 of the State Bank of Vietnam integrates the Decision on promulgating regulation on issue, payment, use and provision of bank card operation support services

THE STATE BANK OF VIETNAM

Decision No.04/VBHN-NHNN dated April 28,2014 of the State Bank of Vietnamintegrates the Decisionon promulgating regulation on issue, payment, use and provision of bank card operation support services

Decision No.20/2007/QD-NHNNdated May 15, 2007 of the Governor of State Bank of Vietnam promulgating the Regulation on issue, payment, use and provision of bank card operation support services has taken effect since June 21, 2007 and is amended and added by:

Circular No.23/2011/TT-NHNNdated August 31, 2011 of the Governor of State Bank of Vietnam on the implementation of the plan to simplify the administrative procedures in the area of payment activities and other areas under the Resolution of the Government on simplification of administrative procedures within the area of management function of the State Bank of Vietnam, has taken effect since October 14, 2011;

THE GOVERNOR OF STATE BANK

Pursuant to the Law on the State Bank of Vietnam 1997; the Law amending and supplementing a number of articles of the Law on the State Bank of Vietnam 2003;

Pursuant to the Law on Credit Institutions 1997; the Law amending and supplementing a number of articles of the Law on Credit Institutions 2004;

Pursuant to the Law on electronic transaction 2005;

Pursuant to Decree No.52/2003/ND-CPdated May 19, 2003 of the Government defining the functions, duties, powers and organizational structure of the State Bank of Vietnam;

Pursuant to Decree No. 64/2001/ND-CP dated September 20, 2001 of the Government on payment activities through organizations providing payment services;

At the request of the Head of Board of payment,

DECIDES:

Article 1.Issuing together with this Decision the Regulation on issue, payment, use and provision of services of operation support of bank card;

Article 2.This Decision takes effect 15 days after its publication in the Gazette and replaces Decision 371/1999/QD-NHNN1 dated October 19, 1999 of the Governor of the State Bank on the promulgation of Regulation on issue, use and payment of the bank card.

Article 3.Chief of Office, Head of Board of payment and Heads of units concerned of the State Bank, Director of State Bank branch in provinces and centrally-affiliated cities, Chairman of Board of Directors and General Director (Director) of commercial banks, development banks, investment banks, banks for social policies, cooperation banks and other types of bank, non-banking credit institutions, cooperation credit institutions and other institutions that are not credit institutions, the organizations and individuals concerned are liable to execute this Decision.

REGULATION

ON ISSUE, PAYMENT, USE AND PROVISION OF SERVICES OF OPERATION SUPPORT OF BANK CARD
(Issued together with Decision No.20/2007/QD-NHNNdated May 15, 2007 of the Governor of State Bank)

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope and subjects

1. This Regulation adjusts the operation of issue, payment, use and provision of bank card operation support services in the Socialist Republic of Vietnam;

2. The subjects of this Regulation are the organizations and individuals related to the issue, payment, use and provision of bank card operation support services in the Socialist Republic of Vietnam;

Article 2. Explanation of term

In this Regulation, the terms below are construed as follows:

1. “Bank card” (hereafter referred to as “card”): is the means issued by the card issuing organization to carry out the card transactions under the terms and conditions agreed by both parties;

According to the territorial scope of card use, the card includes domestic and international card.

Based on the financial sources to ensure the card use, the card includes: debit card, credit card and prepaid card

The cards mentioned in this Regulation do not include types of card issuanced by the providers of goods and services for use in the payment of goods and services for those issuing organizations;

2. “Domestic card” is issued by the issuing organizations in Vietnam for transaction in the territory of the Socialist Republic of Vietnam;

3. “International card” is issued by the issuing organizations in Vietnam for transaction in and outside of the Socialist Republic of Vietnam or is issued by foreign organizations for transaction in the territory of the Socialist Republic of Vietnam;

4. Debit card is a card allowing the card holder to carry out card transactions within the amount of money on the account of payment deposit of the card holder opened at one payment service provider which is given the permission to receive non-term deposit;

5. “Credit card” is a card permitting the card holder to carry out the card transaction within the issued credit limit under the agreement with the card issuing organization;

6. “Prepaid card” is the card which allows the card holder to carry out card transaction within the value of money topped up into card equivalent to the amount of money which the card holder has paid to the card issuing organization;

Prepaid card includes the prepaid card with personalization (personalized prepaid card) and the prepaid card without personalization (unknown prepaid card);

7. “Card transaction” is the card use to send, top up, withdraw cash, make payment of goods and services and use other services provided by the card issuing organization and card payment organization;

8. “Top-up” is the reloading of money value into card by payment of cash, check, transfer of money by debit card, credit card or deduction from account of payment deposit through the card issuing organization, card payment organization, card issuing agent or card accepting unit;

9. “Card holder” is the organizations and individuals provided with card for use by the card issuing organization, including the major card holder and minor card holder;

10. “Major card holder” is the organization or individuals that are named to agree on the card use with the card issuing organization and are obliged to fulfill those obligations;

11. “Minor card holder”: is the individuals permitted by the major card holders to use their cards under agreement on the card use between the major card holder and the card issuing organization. The minor card holder is responsible for the card use with the major card holder;

12. “Card issuing organization” (CIO): is the bank, non-banking credit institution, cooperation credit institution and other organizations not as the credit institutions that are allowed to issue cards under the provisions in Article 9 of this Regulation;

13. “Card payment organization” (CPO) is a bank or other organizations not as banks that are allowed to carry out the card payment services under the provisions in Article 14 of this Regulation;

14. “Card switching organization”: is the intermediary organization providing the services of card transaction processing system connection of CIO, CPO and CAU (card accepting unit) under written agreement between the parties concerned;

15. “Card transaction clearing services provider”: is the intermediary organization performing the exchange of data by electronic means or document and clearing of financial obligations generated from the card transaction of CIO, CPO and CAU under written agreement between the parties concerned;

The card switching organization, in case of performing the services specified in this Clause, is also regarded as a card transaction clearing services provider;

16. “Card accepting unit” (CAU): is the organizations and individuals that accept the payment of goods and services, provision of services of top-up and withdrawal of cash by card;

17. “Card operation support services”: is the services provided by specialized organization or individual of a third party for CIO, CPO, Card transaction clearing services provider and card switching organization under the services contract agreed by the parties concerned. The card operation support services include: card distribution agent,ATM/POS/CDleasing,ATM/CDtop-up,ATM/POS/CDmaintenance and provision of technical solutions related to the card operation and other services not contrary to the Vietnam’s laws;

18. “Automated Teller Machine” (ATM):is the equipment that the card holder may use to send, top up, withdraw money, transfer, look up the card transaction information or use other services;

19. “Cash Dispenser” (CD) is the equipment that the card holder may use for withdrawing cash;

20. “Personal Identification Number” (PIN): is a security code of individuals provided by CIO for the card holder to be used in a number of card transactions to authenticate the card holder. This number is secured by the card holder. In electronic transaction, PIN is regarded as the card holder’s signature;

21. “Bank Identification Number” (BIN) is the single digit sequence defined by the State Bank under a uniform principle in order to identify the card issuing organization and its products and services;

22. “Account of payment deposit” is the account opened by organizations and individuals at the payment services provider for the purpose of deposit, keeping of money or other payment services through the payment services provider by means of payment;

23. “Data message with legal value" is the information created, sent, received and stored by electronic means in accordance with regulations on legal value of data message in the Law of electronic transaction;

24.“Card payment contract” is the contract between CIO, CPO and CAU, card transaction clearing services provider and other parties concerned regarding the agreement upon the terms and conditions for card payment;

25.“Card use contract” is a contract between CIO and card holder concerning the agreement upon the terms and conditions for card use;

Article 3. Provisions on card limit

1. CIO defines the credit limit, payment limit, cash withdrawal limit, overdraft limit and other limits in the card use for the card holders not contrary to the current regulations on credit, management of foreign exchange and other regulations of law;

2. For unknown prepaid cards, the balance on a card must not exceed the limit defined by the State Bank of Vietnam, the top-up is not allowed and the card is used only for payment of goods and services;

This provision does not apply to the personalized prepaid card;

Article 4. Provisions on issue of credit through card

1. The issue of card credit must comply with the current provisions of State Bank on issue of credit;

2. The overdraft and credit amount of a customer are within the limit for loan for that customer under current regulations of law;

Overdraft balance and credit balance are included in the general total outstanding loan of CIO;

3. Time limit for repayment, minimum repayment, payment obligation and other obligations related to the credit issued are done under the agreement between the card holder and CIO and not contrary to the regulations of law.

Article 5. Payment currency on card

1. On the territory of Vietnam, the card transactions must be done in Vietnam dong or converted into Vietnam dong. In case of conversion into Vietnam dong, the exchange rate between Vietnam dong and foreign currency is calculated  by the exchange rate agreed by the parties concerned;

2. The withdrawal of cash at ATM, CD or CAU in the territory of Vietnam must be done in Vietnam dong;

3. Outside Vietnamese territory: international card transactions carried out in Vietnam dong, freely convertible foreign currency and other currencies are accepted by CPO as a payment currency in current transactions under regulations of law on foreign exchange management;

CPO is obliged to manage the card use limit it issues under regulations of law on foreign exchange management;

Article 6. Fees of card services

1. Card holder must pay fees for the card use. Type and rate of fee are defined by CPO depending on the type of card and services provided for the card holder when using card and not contrary to regulations of law;

2. Other types and rates of fee related to the card services that CIO, CPO and CAU, card transaction clearing services provider and card switching organization must pay or are paid under the agreement between the parties not contrary to law;

3. CIO and CPO must announce the types and rates of fee to the party paying the fee before it uses the services;

4. CAU must not collect from the card holder the types of fee related to the acceptance of card in payment transactions of goods and services that the card holder carries out at CAU in any form, except for the cases related to the card holder’s top-up and withdrawal of cash;

Article 7. Appropriation of risk provision

CIO and CPO must appropriate the risk provision to cover the risks generated from the issue and payment of card. The provision and method of appropriation and use of risk provision shall comply with the regulations of the State Bank of Vietnam and other relevant laws of Vietnam;

Article 8. Application of law

1. The issue, use, payment and provision of card operation support services must comply with the provisions of this Regulation and other regulations of relevant laws;

2. In cases related to the issue, use, payment and provision of international card, the individuals and organizations may apply the regulations of international card organization in which they participate and not contrary to other relevant laws;

3. In case where the international agreements which the Socialist Republic of Vietnam is a signatory or a member otherwise provide for, such international agreements shall apply.

4. Where the activities are related to the cards on which the Laws of Vietnam have not had regulations, the parties may reach an agreement to apply international practices if this application is not contrary to the basic principles of the laws of Vietnam;

Chapter 2.

CARD ISSUANCE

Article 9. Conditions and procedures for registration of card issuance

1. The following organizations are permitted for card issuance:

a) Credit institution as a bank ensures the complete implementation of provisions provided for in Clause 2 of this Article;

b) Non-banking credit institutions, cooperation credit institutions and other institutions that are not the credit institutions are permitted to carry out banking activities including the card issuance operation and ensure the complete implementation of provisions specified in Clause 2 of this Article;

2. The card issuing organization must comply with the following conditions:

2.1. For the issue of domestic cards:

a) The card issuance operation must be consistent with the scope and condition and objective of operation of the card issuing organization;

b) Abiding by regulations on the prudential ratios in activities prescribed by law;

c) Building mechanisms and process to implement the card issuance operations;

d) Ensuring the principles of risk management in the electronic banking activities for the card issuance operation;

dd) Abiding by the current regulations of the State Bank on internal inspection and control over the card issuance operation;

e) Registering type and function of card at the State Bank before issuance;

g) Making a report and fully and accurately providing information and relevant documents to prove the conditions to ensure the performance of card issuance operation; making complete and accurate report on statistical information in service of management and supervision of the State Bank;

h) Abiding by other provisions in this Regulation;

2.2. For international card issuance:

In addition to the conditions specified in Clause 2 of this Article, the international card issuing organization must also be eligible for operation of foreign exchange defined by the State Bank of Vietnam;

3. The State Bank shall assess the compliance specified in Clause 2 of this Article for the card issuing organization during the implementation of card issuance. Where the card issuing organization does not comply with the above regulations, that organization must take necessary remedial measures as required by the State Bank. In case of failure of remedy, that organization must stop its card issuance operation;

4.Procedures for registration of types of bank card;

a) When issuing new types of card, the card issuing organization shall submit 01 set of dossier directly or by post to the State Bank (Payment Department) and send via Internet the soft copy of bank card registration. Dossier for registration of bank card includes:

- Registration of type of bank card (with font Unicode) (under the form in Appendix No.02.DGHattached to this Circular); and the electronic file fully reflecting the factors such as Registration of type of bank card in paper (form of transfer of data file by floppy disk or via Internet to the address:[email protected];

- Sample card in kind;

- Copy of contract associated with the bank card operation support services providers and the relevant documents (if any) and contract on agreed participation in international card organizations;

b) The State Bank (the Payment Department) shall verify dossier for registration of bank card. If it is not complete or invalid, the dossier-receiving officer shall guide the card issuing organization for addition or re-preparation;

c) Within 05 working days, from the date of fully receiving dossier as provided for, the State Bank (the Payment Department) shall send a written opinion to confirm the card registration to the card issuing organization;

Article 10. Issuing code of card issuing organization

The card issuing organization must use the code of card issuing organization under regulations on issue, use and management of code of card issuing organization of the State Bank;

Chapter 3.

CARD USE

Article 11. Conditions for card use

1. The card use must be made into card use contract between the card holder and CIO. The card holder must fulfill the following conditions:

a) For the main card holder as individuals:

- Fully having capacity for civil acts in accordance with law;

- Having account of payment deposit opened at CIO if using debit credit;

- Other conditions are provided for by CIO;

b) For the main card holder as organizations, they must satisfy the following conditions:

- Being a legal entity;

- Other conditions are provided for by CIO;

c) For the minor card holders, they must satisfy the following conditions:

- Fully having capacity for civil acts in accordance with law or having capacity for civil acts and from fifteen years old in full to under eighteen years old and being approved by their legal representatives for the card use;

- Being committed by the main card holder to perform all generated obligations concerning the card use;

- Other conditions of CIO;

The provisions at Point a, b and c of this Clause do not apply for unknown prepaid cards;

2. For credit cards or debit card with overdraft limit, there must be additional written regulations on the issue of credit between the card holder and CIO;

Article 12. Scope of card use

1. Domestic card is used for payment of goods and services at CAU, sending, top-up, withdrawal and use of other services as agreed with CIO in the territory of Vietnam;

2. International card is used for payment of goods and services at CAU, sending, top-up, withdrawal and use of other services in Vietnam dong in the territory of Vietnam or in Vietnam dong, freely convertible foreign currencies and other currencies accepted by CPO as payment currencies outside the territory of Vietnam;

Article 13. Safety assurance in card use

1. The card holder is responsible for card maintenance and security of PIN. If losing card, the card holder must give a notice to CIO immediately and officially confirm this notice in writing or by data message with legal value to CIO. The time limit for CIO to confirm the settlement of notice received from the card holder shall comply with the written agreement between the parties concerned but not exceeding ten working days from the date of receipt of the card holder’s notice;

2. Where the card is abused before CIO confirms in writing or by data message with legal value on settlement of notice received from the card holder, the card holder must take full responsibility for damage and make compensation for damage due to card abuse;

3. Where the card is abused after CIO confirms in writing or by data message with legal value on settlement of notice received from the card holder, CIO must take full responsibility for damage and make compensation for damage due to card abuse;

4. CIO is responsible for defining and guiding the card holder to use, maintain card and manage PIN number;

Chapter 4.

CARD PAYMENT

Article 14. Conditions to carry out card payment services

1.The following organizations are allowed to carry out card payment services:

a) Credit institution as a bank ensures the complete implementation of provisions provided for in Clause 2 of this Article;

b)Other organizations not as banks are permitted to carry out the payment services including card payment services and ensure to fulfill the conditions specified in Clause 2 of this Article;

2. The card payment organization must comply with the following conditions:

a) Implementing the card payment services in accordance with the scope and objectives of the organization activities;

b) Complying with regulations on prudential ratios in operation under regulations of law;

c) Ensuring the principles of risk management in electronic banking activities for the implementation of payment card services;

d) Complying with current regulations of the State Bank on internal inspection and control over the implementation of payment card services;

dd) Fully and accurately reporting and providing information and relevant documents to prove the conditions for ensuring the implementation of payment card services; fully and accurately reporting the statistical information for the management and supervision of the State Bank;

e) Abiding by other provisions in this Regulation;

3. The State Bank shall assess the compliance specified in Clause 2 of this Article for the card payment organization during the implementation of card issuance. Where the card payment organization does not comply with the above regulations, that organization must take necessary remedial measures as required by the State Bank. In case of failure of remedy, that organization must stop its implementation of card payment services;

Article 15. Implementation of card payment

1. The card payment is implemented under the card payment contract;

2.The card transaction clearing is implemented under the agreement on the payment between the parties concerned;

3. For international card, the card payment is implemented under the agreement with the international card organization in which CPO participates and not contrary to the law of the Socialist Republic of Vietnam;

Article 16. Rejection of card payment

1. Card is rejected in the following cases:

a) Fake card or related to fraudulent transactions;

b) Card has been lost by card holder’s notice;

c) Balance of account of payment deposit, credit limit and overdraft limit (if any) are not sufficient for payment;

d) Card holder does not fully pay the overdrafts, credits, interests or fees provided for by CIO;

dd) Card holder commits the provisions of the State Bank, of CIO, CPO  and agreements between the card holder and CIO;

2. CIO shall give a written notice or data message with legal value on the cases specified in Clause 1 of this Article to CPO; CPO shall give a notice to CAU;

3. The notices of payment rejection of card are effective from the time the party related to the card payment receives a written notice or data message with legal value. After receiving the notice, if the related party does not still reject the card payment resulted in card abuse, that related party must take responsibility for damages, unless otherwise agreed by the related parties;

Chapter 5.

ORGANIZATION OF CARD PAYMENT SYSTEM

Article 17. Clearing of card transaction

The implementation of clearing services of card transaction between CIO and CPO must be approved by the State Bank;

When carrying out the clearing services of card transaction between CIO and CPO, the card transaction clearing services provider must ensure the conditions and technical standards promulgated by the State Bank;

Article 18. Finalization of result of clearing of card transaction

The finalization of financial obligations arising from the clearing between the members of the clearing system of card transaction must be carried out at the State Bank or a payment services provider accepted by the State Bank;

Chapter 6.

RIGHTS AND OBLIGATIONS OF PARTIES

Section 1: RIGHTS AND OBLIGATIONS OF CARD ISSUING ORGANIZATION

Article 19. Rights of CIO

CIO has the right to:

1.Require the provision and collection of information:

a) Require the card holder to fully provide necessary information and documents to clarify the conditions for card use of customers upon requirement for being provided with card and during the process of card use;

b) Require CPO to provide necessary information related to the card transaction of the card holder at CPO and CAU concerned;

c) Collect information from other organizations on the card holder or customer upon request for card issuance;

2. Regulations on card use:

a) Rejecting to issue card if the customer fails to fulfill the terms and conditions for card use; making a decision on card revocation during use if the card holder fails to fulfill the terms and conditions in the card use contract;

b) Increasing or decreasing the overdraft limit and credit limit; Making a decision on recovery of amount lent to the card holder by CIO; Defining the forms to ensure the safety for the card use; Defining types of interest, rates of interest for loan for the card holder not contrary to the current regulations of law;

3. Selection of partner:

a) Selecting organization as partner to sign joint venture or association contract to issue cards and organize the card payment on the basis of safety and efficiency assurance;

b) Selecting the card operation support services provider to sign the card operation support services on the basis of compliance with principles of risk management;

4. Other rights under the card payment contract, the card use contract and the card operation support services contract not contrary to law;

Article 20. Obligations of CIO

CIO is obliged to:

1. For the card holder:

a) Settle or reply to the complaints and requests for verification of the card holder as provided for in Clause 5, Article 21 of this Regulation;

b) Refund the amount which has been topped up but not used up in the prepaid card upon the card holder’s request in the following cases:

- The card is damaged due to the technical error;

- The balance of personalized prepaid card is unused and the card holder requires the refund of this amount;

c) Provide all information to the card holder on the types of fee that the card holder must pay before using the card (including fees of transaction of different system);

2. For the parties concerned:

Make full and timely payment for obligations incurred of card transactions as agreed between the parties concerned;

3. For the safety assurance of card operation:

a) Take measures to ensure the safety and prevention of risks for card transaction on the principles of risk management in electronic banking activities; keep information confidential related to the card operation; ensure the infrastructure system and the management software of card issuance and payment shall operate smoothly and safely;

b) Guide the card holder to take measures to ensure the safety for card transaction;

c) Require CPO and the card operation support services provider to take necessary measures to ensure the safety in card operation; implement the risk management for the card operation support services provider under the regulations on principles of risk management in electronic banking activities of current laws;

4. Other obligations under the card payment contract, the card use contract and the card operation support services contract;

Section 2: RIGHTS AND OBLIGATIONS OF CARD HOLDER

Article 21. Rights of card holder

The card holder has the right to:

1. Use card to make payment for goods and services without discrimination of price compared with the case of payment in cash, no extra money or extra fee paid for CAU;

2. Make an agreement with CIO on overdraft limit, credit limit and other agreements not contrary to the current laws;

3. Be provided with periodical or irregular information by CIO on the card transaction, balance and limit related to the card use as provided for by CIO;

4. Be refunded by CIO the amount which has been topped up but not used up in the prepaid card in the cases specified at Point b, Clause 1, Article 20 of this Regulation upon requirement;

5. Make complaints and require CIO to perform the verification in the following cases:

a) There are errors or doubts about errors of card transactions notified by CIO to the card holder as agreed. If the card holder makes complaints or requires verification to CIO, it shall notify this requirement to CPO;

b) CAU raises price of goods and services or discriminates price when receiving payment by card compared with the payment in cash; CAU requires the card holder to pay extra fees for card transactions to buy the goods and services at CAU;

c) Other breaches of card use contract of CIO;

Complaints and request for verification must be made in writing or data message with legal value and sent to CIO within seven working days from the date the card holder receives the notice (for the cases specified at Point a of this Clause) or from the date the card holder’s rights and interests are infringed (for the cases specified at Point b and c of this Clause)

6. Other rights specified in the card use contract;

Article 22. Obligations of card holder

The card holder is obliged to:

1. Fully and accurately provide necessary information as required by CIO for card issuance and during the card use;

2. Fully and punctually paying CIO the fees, loan and interests generated from the card use under the agreement in the card use contract;

3. The major card holder and minor card holder shall take joint and separate responsibility for implementation of terms and conditions for card use in the card use contract between the card holder and CIO. The major card holder shall take responsibility with CIO for the card use of the minor card holder and shall pay CIO all card transactions with the signature of the major card holder and minor card holder on the invoice as well as using a PIN number. Where the major card holder is dead, missing or incapacitated, the payment to CIO and receipt of balance on the account of payment deposit of the major card holder or the remaining amount in the personalized prepaid card shall comply with regulations of law;

4. Other obligations in the card use contract;

Section 3: RIGHTS AND OBLIGATIONS OF CARD PAYMENT ORGANIZATION

Article 23. Rights of CPO

CPO has the right to:

1. Be paid fully and promptly by CIO for the card transactions done under the agreement between both parties;

2. Be refunded by CAU for the card transactions done improperly with the card payment contract;

3. Be provided with necessary information related to the card holder’s card transactions at CAU;

4. Be entitled to the fees of card services as agreed by parties;

5. Confiscate the cards as provided for in Article 31 of this Regulation;

6.Other rights under the card payment contract and the card operation support services contract;

Article 24. Obligations of CPO

1. CPO is obliged to:

a) Require CAU not to discriminate price in card payment. If CAU does not comply with this requirement, CPO shall terminate the contract and requires CAU to compensate for damage and apply other appropriate measures under the terms committed by the parties;

b) Guide the measures, professional and technical process and security in the card payment for CAU. CPO must take responsibility for the damage caused CPO due to failure to comply with this regulation;

c) Implement risk management for the card operation support services provider under regulations on the principles of risk management in electronic banking activities of current law;

d) Perform the verification requirements of CIO within 05 working days from the date of receipt of requirement from CIO. If CPO fails to meet or meet the requirement not in line with the specified time, from the expiry date of reply, CPO must take full responsibility for expenses incurred concerning the card transaction that requires the verification;

dd) Other obligations under the card payment contract, the card use contract and the card operation support services contract;

2. CPOs are not permitted to sign the card payment contract with any CAU committing the violation specified at Point a, Clause 1 of this Article within 01 year. If that CAU continues its breach, the duration in which CAU must not sign contract may be from three to five years. If CAU knows but fails to comply with regulation, this can be regarded as violation of conditions for the implementation of card payment services specified in Article 14 of this Regulation;

Section 4: RIGHTS AND OBLIGATIONS OF CAU

Article 25. Rights of CAU

CAU has the right to:

1. Be paid fully and promptly by CIO and CPO for the card transactions under the contract;

2. Revoke and keep the card as provided for in Article 31 of this Regulation;

3. Other rights under the card payment contract and the card operation support services contract;

Article 26. Obligations of CAU

CAU is obliged to:

1. Accept the card in payment of goods and services without increasing price or applying the discrimination of price or requiring the card holder to pay extra fees for transactions to be paid by card for goods and services compared with the payment in cash. Where CAU breaches this requirement, it must not sign the card payment contract with any CPO within 01 year; if CAU continues its breach, the duration in which CAU is not allowed to sign contract may be from three to five years;

2. Fully perform the professional and technical procedures related to the card holder’s card transaction guided by CPO; Take responsibility for damage if CAU fails to fulfill CPO‘s requirements;

3. Refuse the acceptance of card under the provisions in Clause 1, Article 16 of this Regulation;

4. Other obligations under the card payment contract and the card operation support services contract;

Section 5: RIGHTS AND OBLIGATIONS OFCARD OPERATION SUPPORT SERVICES PROVIDER

Article 27. Rights and obligations ofcard operation support services provider

The rights and obligations of card operation support services provider concerning the provision of card operation support services for CIO, CPO, CAU, card transaction clearing services provider or card switching organization under the services contract signed by the parties concerned;

Chapter 7.

REPORT, PROVISION OF INFORMATION AND HANDLING BREACH

Article 28. Report

1. CIO and CPO shall make periodic reports according to the regulations on report and statistics of the State Bank;

2. CIO and CPO and card transaction clearing services provider shall make report to the State Bank in the following cases:

a) As required by the State Bank in service of its State management;

b) When there are unusual events arising in the issuance, payment and debt collection for the card holder resulted in affecting the operation of CIO and CPO;

Article 29. Information security

CIO, CPO, CAU and card transaction clearing services provider must keep information confidential related to the card transaction and only provide information in the following cases:

1. On the requirement of the card holder;

2. On the requirement of CIO and CPO;

3. Under regulations of law;

Article 30. Banned acts

1. Make, use, transfer and storage of fake cards;

2. Card holders transfer their cards to the others (except for case of unknown prepaid cards);

3. Unauthorized use of the cards not issued by CIO;

4. False declaration of information of individuals and organizations or forgery of papers when preparing documents for card use or during the card use;

5. Card uses that have been notified of banned circulation;

6. Intruding or finding ways to intrude into the program or database of system of issuance, payment and card transaction clearing;

7. Carrying out fake transactions;

8. Stealing or colluding to steal information in the cards;

Article 31. Card confiscation

CIO, CPO, CAU and legal authorities have the right to confiscate cards in the following cases:

1. Fake card;

2. The card holder fails to prove he/she is the card holder;

3. The card holder fails to comply with regulations of CIO (or of international card organization whose cards bear trademark) on the card use;

4. As required by CIO (or international card organization whose cards bear trademark)

Article 32. Handling of violation

Organizations and individuals breaching the provisions in this Regulation, depending on the seriousness, shall be sanctioned for administrative violation or prosecuted for criminal liability in case of seriousness. If causing damages, they must make compensation under the regulations of law;

Chapter 8.

IMPLEMENTATION PROVISION

Article 33. Responsibility of units under the management of the State Bank

1. Board of Payment:

a) Monitoring, coordinating and evaluating the compliance with conditions for implementation of bank card operations for CIO, CPO and the card transaction clearing services provider;

b) Formulating and submitting the regulation on the code of card issuing organization to the Governor for promulgation; issuing and managing the code of card issuing organization;

c) Advising the Governor to give direction in the field of card issuance and card payment operation of CIO, CPO and the card transaction clearing services provider;

d) Receiving the registration of types of card of the card issuing organizations;

2. State Bank Inspectorate:

a) Inspecting, examining and evaluating the compliance with principles of risk management and the provisions in this Regulation and handling the violation under its authority and notifying the result to the Board of Payment;

b) Giving notice to the units concerned to handle cases of violation of provisions in this Regulation;

3. Department of Banking Information Technology:

Formulating and submitting the general principles and technical standards of information technology to the Governor for the card issuance and payment and connection system related to the card transaction clearing to ensure the safety and security of bank card payment operation;

4. Bank Department:

a) Performing work related to the issuance, suspension or revocation of banking operation Permit for the activities of card issuance, card payment, card transaction clearing for CIO, CPO and the card transaction clearing services provider;

b) Formulating and submitting the regulations on risk provision related to the business operation of bank card;

Article 34. Transitional provision

CIOs, CPOs and the card transaction clearing services providers must comply with comply with the provisions of this Regulation and other relevant regulations; if in this Regulation, there are provisions referred to the other relevant provisions, but the State Bank has not specified them yet, CIOs, CPOs and the card transaction clearing services providers shall comply with the agreement between the parties concerned or apply the appropriate international practices;

The provisions in this Article are not applicable to the unknown prepaid cards;

Article 35. Any amendment and supplement of this Regulation shall be decided by the Governor of the State Bank./.

Appendix 02.DGH

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
-----------------------------

BANK CARD REGISTRATION

To: Department of Payment – State Bank of Vietnam

Name of card issuing unit:

- In Vietnamese:……………………………………………………

- In foreign language:……………………………………………

- Abbreviated name:…………………………………………………………

- Address of head office:……………………………………………….

- Tel:…………………………Fax:…………………………..

In implementation of provisions at Point c, Clause 2, Article 9 of the Regulation on issuance, payment, use and provision of bank card operation support services issued together with the Decision No.20/2007/QD-NHNNdated May 15, 2007 of the Governor of the State Bank of Vietnam, we would like to register the following cards:

1. Information related to the cards:

2.Photos of the front and back of the card (please scan the card sample as example below)

Certification of Integrated Document

For the Governor

The Deputy Governor

Dang Thanh Binh