Integrated Document No. 46/VBHN-NHNN dated November 9, 2016 of the State Bank of Vietnam integrates the Circulars on bank card operations

THE STATE BANK OF VIETNAM

Integrated Document No. 46/VBHN-NHNN dated November 9, 2016 of the State Bank of Vietnam integrates the Circulars on bank card operations

Circular No. 19/2016/TT-NHNN dated June 30, 2016 of the Governor of the State bank of Vietnam on band card operation, which comes into force from August 15, 2016, shall be amended by:

Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

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

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

Pursuant to Decree No. 101/2012/ND-CP dated November 22, 2012 of the Government on non-cash payment;

Pursuant to the Government s Decree No. 156/2013/ND-CP dated November 11, 2013 defining the functions, tasks, entitlements and organizational structure of the State bank of Vietnam;

At the request of the Director of the Payment Department;

The Governor of the State bank of Vietnam promulgates a Circular on bank card operations1.

Chapter I

GENERAL PROVISIONS

Article 1. Scopeof adjustment

This Circular deals with operations of bank cards (hereinafter referred to as cards), including: issuance, usage, payment, switching, clearing and statement of card transactions.

Article 2.Subject of application

1. Card issuers.

2. Acquirers.

3. Switching companies.

4. Clearing companies.

5. Merchants.

6. Cardholders.

7. Other organizations and individuals related to bank card operations.

Article 3. Interpretation of terms

For the purposes of this Circular, these terms below shall be construed as follows:

1.Bank cardmeans an instrument issued by a card-issuer for conducting card transactions under the conditions and terms agreed upon by the involved parties.

Cards regulated in this Circular do not cover types of cards issued by good suppliers or service providers for the purpose of use in the payment for goods and services for the card issuers themselves.

2.Debit cardmeans a card that authorizes its holder to conduct card transactions within the amount of money available and overdraft limit (if any) on the payment deposit account of the cardholder opened at a card issuer.

3.Credit cardmeans a card that authorizes its holder to conduct card transactions within the credit limit granted under the agreement with the card issuer.

4.Prepaid cardmeans a card that authorize its holder to conduct card transactions within the value limit deposited to the card corresponding to the amount of money already prepaid by its holder to the card issuer.

Prepaid cards include:  Personalized prepaid card (identifying the cardholder) and anonymous prepaid card (not identifying the cardholder).

5.Co-branded cardmeans a card that bears both brand names of a card issuer and an association organization.

6.Physical cardmean a card with existing forms of material, usually made of plastic, fitted with a magnetic strip or electronic chip to store card data.

7.Non-physical cardmeans a card without existing form of material but contain the information prescribed in Article 12 of this Circular, which is issued by a card issuer to conduct transactions via Internet, cell phones, or other electronic devices that accept the card. A non-physical card may be converted into physical card at the request of the cardholder.

8.Card transactionmeans a card is used to make deposit and/or withdrawal of cash, money transfer, payment of goods or services and to use other services provided by the card issuer and card acquirer.

9.Fake cardmeans a card containing information of genuine card and genuine cardholder which is not issued by the card issuer.

10.Fraud card transactionmean a transaction using fake cards, using card or card information illegally.

11.Cardholdermeans an individual or organization that is authorized to use a card issued by a card issuer, including principal cardholder and supplementary cardholder.

12.Principal cardholdermeans an individual or organization that bears his/her/its signature in an agreement on card issuance and usage concluded with a card issuer.

13.Supplementary cardholdermeans an individual who is authorized by the principal cardholder to use the card and the principal commits in writing to fulfill all obligations arising from the agreement on card issuance and usage.

14.Card issuermeans a credit institution or a branch of foreign bank that is licensed to issue cards as prescribed in Article 9 of this Circular.

15.Acquirermeans a credit institution or a branch of foreign bank that is licensed to process card payments as prescribed in Article 21 of this Circular.

16.Switching companymeans a company providing payment intermediary services by switching card transactions for card issuers, acquirers, international card associations and merchants agreed upon in writing by involved parties.

17.Clearing companymeans a company providing payment intermediary services by making clearing of financial liabilities for card issuers, acquirers, international card associations and merchants agreed upon in writing by involved parties.

18.Merchantmeans an individual or organization that accept cards as a form of payment for goods and services according to the card payment agreement concluded with an acquirer.

19.International card associationmeans an organization which is established in a foreign country under such country s regulations and law, and has agreements concluded with card issuers, acquirers and other involved parties to issue and make payments of cards bearing codes of card issuers granted by the international card association in accordance with Vietnamese law and international commitments.

20.Automated Teller Machine(ATM) means a device which can be used by cardholders to: make deposit or withdrawal of cash, money transfer, bill payment, account inquiry, PIN change, account inquiry or use other services.

21.Point of sale terminals, including Point of Sale (POS for short), Mobile Point of Sale (mPOS for short) and other point of sale terminals devices, are card readers and terminals that are installed and used at merchants and allowed cardholders to use cards to make payments of goods and services. A POS may be installed at a branch or transaction office of an acquirer to provide cash for cardholders as agreed upon between the acquirer and the card issuer.

22.Personal Identification Number(PIN for short) means a numeric password which is granted initially by a card issuer to a cardholder for use and being changed subsequently by the cardholder according to regulated process for card transactions.

23.Bank Identification Numbermeans a numeric code to indicate a card issuer as prescribed by the State Bank of Vietnam (hereinafter referred to as the State Bank).

24.Agreement on card issuance and usagemeans an agreement on card issuance and usage concluded by a card issuer and a cardholder.

25.Card payment agreementmeans an agreement on card payment concluded by an acquirer and a merchant or an international card association.

Article 4. Card currency

1. On Vietnamese territory:

a) Cash withdrawal by cards must be made in Vietnamese dong;

b) For other card transactions:

(i) Transaction currency is Vietnamese dong. In case where foreign exchange is permitted for a transaction as prescribed by law on foreign exchange management, the transaction currency will be Vietnamese dong or Vietnamese dong and foreign currency;

(ii) Currency of payment is Vietnamese dong. Merchants are required to accept payments only in Vietnamese dong made by acquirers;

c) In case of conversion into Vietnamese dong from a foreign currency, the exchange rate between Vietnamese dong and such foreign currency shall be agreed upon the involved parties in accordance with regulations of the State Bank.

2. Outside Vietnamese territory:

When a card transaction is conducted outside Vietnamese territory, the cardholder must make a payment in Vietnamese dong to the card issuer according to the exchange rate agreed upon by the parties in accordance with regulations of the State bank.

Article 5. Card fees and charges

1. Only card issuers are permitted to collect fees and charges from cardholders. Each card issuer must collect fees and charges according to its own schedule of card service fees and charges and must not collect any additional type of fees/charges not mentioned in the announced schedule of card service fees and charges. The schedule of card service charges must specify types of fees and charges applicable to every card and card services. The schedule of card service fees and charges of card issuers must comply with regulations of law, be posted publicly and provided for cardholders before its application and upon any change to this schedule. Types of notification and supply of information of those charges to cardholders must be specified in the agreement on card issuance and usage. A period of at least 7 days is required for the application of any change of the service charges from the date on which it is informed and such period must be specified in the agreement on card issuance and usage.

2. The acquirer and the merchant may enter into an agreement on discount charges.  The interchange fees between card issuers, acquirers, switching companies, clearing companies, and international card associations shall be agreed upon by the involved parties as prescribed by law.

Article 6. Actions against risks and losses in trading cards

1. Card issuers must setting up credit risk reserves to offset risks arising from card trading as prescribed in regulations of the State Bank on establishment and use of credit risk reserves.

2. With regard to other types of risks in card trading, card issuers and acquirers shall offset losses arising from card trading as prescribed in regulations on financial regime applicable to credit institutions and branches of foreign banks.

Article 7. Seizure of cards

A card shall be seized in any of the following cases:

1. It is fake;

2. It is used illegally.

3. It is used for the purpose of investigation and actions against crime as prescribed by law.

4. Other cases of card seizure as agreed upon in the agreement on card issuance and usage.

Article 8. Prohibited acts

1. Making, using, assigning and circulating fake cards.

2. Conducting fraud card transactions; fictitious transactions at merchants (no occurrence of any sale of goods and provision of services).

3. Merchants collect additional fees or practice price discrimination against cardholders making card-based payment.

4. Stealing or collaborating with other entities to steal card information; disclosing and providing information about cards, cardholders and card transactions not in accordance with regulations of law.

5. Illegally accessing or attempting to illegally access or destroy the program or database in the system of issuance, payment, switching, and clearing of cards.

6. Using cards to conduct transactions for the purposes of money laundering, terrorism financing, fraud and other violations of law.

Chapter II

ISSUANCE OF CARDS

Article 9. Card issuers

1. Commercial banks, banks for social policies, and branches of foreign banks are permitted to issue cards provided that their licenses or amended licenses issued by the State Bank indicate the card services.

2. Banks for social policies are permitted to issue cards as prescribed by the Government and the Prime Minister.

3. Financial companies are permitted to issue credit cards subject to the approval of the State Bank. Factoring companies are not permitted to issue cards.

4. Any credit institution that is permitted to conduct foreign exchange transactions may enter into an agreement on card issuance with an international card association. Its BIN will be issued by such international card association.

Article 10. Procedures for card issuance

1. A card issuer must lay down internal regulations on card issuance within its system.  When issuing non-physical cards, a card issuer must formulate documents on process of card opening and closing, process of card transactions, process of risk management (including the following steps: Identification, measure, control and actions against risks), scope of card usage and measures for control of card usage within the agreed scope.

2.2Before a new card model is issued or the current card model is changed, the card issuer must register such card with the State Bank using the Form in the Appendix issued herewith.”

3. When a principal cardholder requests a card issuer to issue a debit card, the principal cardholder is required to have a payment account opened at such card issuer.

4. Any arrangement on card issuance and usage must be made in the form of agreement on card issuance and usage in accordance with this Circular and relevant law provisions. The contents of the agreement shall comply with Article 13 of this Circular.

5. Before signing an agreement on card issuance and usage, the card issuer request the cardholder to provide sufficient information and necessary document for identification as prescribed by law.

6. Card issuers in Vietnam must use BIN issued by the State Bank, other than regulations in Clause 7 of this Article.

7. Any card issuer in Vietnam that enter into an agreement on co-branded card with an international card association is entitled to use the BIN issued by such international card association.

8. Card issuers may not agree with other organizations to restrict the issuance of Co-branded cards.

9. When the issuance of a card model is suspended, the card issuer must sent notification in writing to the State Bank for management.

Article 11. 3 (Annulled)

Article 12. Cardinformation

1. Information on a card must contain:

a) Name of the card issuer (abbreviated name or trade logo) in the front side of the card;

b) Name of the switching company of which the card issuer is a member (abbreviated name or trade logo of the switching company);

c) Name or brand name of the card (if any);

d) Card number;

dd) Validity period (or the validity date) of the card;

e) Full name of the cardholder being individual; or name of the cardholder being organization and full name of the person who is authorized to use the card on behalf of the organization. This provision does not apply to anonymous prepaid cards.

2. Apart from the information prescribed in Clause 1 of this Article, the card issuer may regulate other information on cards provided that it comply with Vietnamese law.

Article 13. Agreement on card issuance and usage

1. An agreement on card issuance and usage must contain at least the following contents:

a) Number of agreement;

b) Date of agreement;

c) Name of the card issuer, name of the cardholder; full name of the person who is authorized to use the organization s card;

d) Rights and obligations of contracting parties;

dd) Regulations on fees and charges (types and changes of fees and charges);

e) Information about account balance, history of card transactions and other necessary information that is provided by the card issuer to the cardholder

g) Card facility agreement and changes of card facility agreement, including overdraft limit (for debit cards) and credit limit, terms of credit, loan term, minimum sum of repayment, method of repayment, interest (for credit cards and debit cards to which the overdraft facility is provided). The credit facility agreement concluded with the cardholder may be specified in the agreement on card issuance and usage or in another document; 

h) Scope of card usage;

i) Cases of rejection of card-based payment;

k) Cases of temporary lock, seizure or validity cancellation of cards during their usage;

l) Cases of refund of the remaining sum of the card;

m) Safety and security measures required during the card usage and card losses or card disclosure;

n)4Methods of receiving trace requests, complaints; time limit for processing trace requests, complaints, and results thereof in accordance with Article 20 of this Circular;

o)5  Force majeure events.

2. With respect to anonymous prepaid cards, card issuers must provide terms and conditions for issuance of usage of anonymous prepaid cards and announce them to customers. The card issuer must enter into an agreement with an applicant for issuance of anonymous prepaid card, which at least contains: information about the applicant; number of cards to be issued, card limit, deposit made into the card, scope of card usage, validity period (or the validity date) of the card.

Article 14. Card limit

1. The card issuer shall agree with the cardholder about payment limit, transfer limit, cash withdrawal limit (including the limit applicable to cash withdrawal made overseas) and other card-related limits in accordance with regulations of law in force on foreign exchange management and other provisions of law.

2. With regard to anonymous prepaid cards, the card issuer shall specify balance limit and deposit limit, provided that the balance of an anonymous prepaid card does not exceed VND 5 million at a time.

Article 15. Credit card-based credit facility agreement

1. Credit card-based credit facility agreement must satisfy the following requirements:

a) Be bound by the agreement on card issuance and usage and other agreements on credit facility between the card issuer and the cardholder (if any);

b) The card issuer must issue international regulations on credit card-based credit facility in accordance with regulations of law on prudential measures in credit facilities, including entities, credit limit, requirements, time limits for credit extension, loan term, applicable interests, process of assessment and decision on card-based credit extension in conformity with the rules of specific responsibility of process of assessment and decision on credit extension;

c) The card issuer shall consider and decide the card-based credit extension if the following requirements are satisfied:

(i) The cardholder is an eligible entity prescribed in Point a Clause 1 and Clause 2 Article 16 of this Circular and is not an entity ineligible for credit extension prescribed in Article 126 of the Law on credit institutions and guidelines of the State Bank;

(ii) The cardholder must use the loan amount for proper purposes and its/his/her financial capacity for repaying debt on schedule;

d) The card issuer shall consider requesting the cardholder to provide types of security for its/his/her liability as prescribed.

2. Loans granted under debit cards’ overdraft limit by a card issuer must comply with regulations of law in force on borrowing of the State Bank.

3. The card-based credit facility and loans under debit cards’ overdraft limit granted by the card issuer shall comply with regulations on credit facility agreements prescribed in Article 127 and Article 128 of the Law on credit institutions and guidelines of the State Bank.

Chapter III

USAGE OF CARDS

Article 16. Eligible entities

1. For principal cardholders being individuals:

a) An person who is 18 years of age or older and has full legal capacity as prescribed by law is permitted to use debit cards, credit cards and/or prepaid cards;

b) Any person aged 15 to less than 18 years who does not have lack of legal capacity or limited legal capacity, and has his/her own assets to be taken as security in the card usage is permitted to use debit cards without overdraft facility and prepaid cards.

2. For principal cardholders being organizations: Organizations legally established and operated under Vietnamese law, including: juridical persons, private enterprises shall be permitted to use all types of cards. The cardholder being organization may authorize a person to use the organization’s card on its behalf or use supplementary card as prescribed in this Circular.

3. With respect to supplementary cardholders:

A supplementary cardholder may use card as specific authorization of the principal cardholder in accordance with the following requirements:

a) An person who is 18 years of age or older and has full legal capacity as prescribed by law is permitted to use debit cards, credit cards and/or prepaid cards;

b) An person aged 15 to less than 18 years who does not have lack of legal capacity or limited legal capacity and obtain an authorization in writing made by his/her legal representative to permit him/her to use debit cards without overdraft facility and prepaid cards;

c) An person aged 6 to less than 15 years who does not have lack of legal capacity or limited legal capacity and obtain an authorization in writing made by his/her legal representative to permit him/her to use debit cards without overdraft facility and prepaid cards;

Article 17. Rules of card usage

1. Each cardholder must provide sufficient and accurate information as required by the card issuer in the agreement on card issuance and usage and take responsibility for the accuracy of the information provided.

2. When using a credit card or a debit card with overact facility, the cardholder must use money properly and make full and due repayment of loan amounts and interests thereof to the card issuer as specified in the agreement concluded with the card issuer.

3. Scope of card usage:

a) Debit cards and personalized prepaid cards are used to conduct card transactions as agreed upon by the cardholder and the card issuer;

b) Credit cards are used to pay for the purchase of goods and services; deposit and withdrawal of cash as agreed upon between the cardholder and the card issuer;

c) Anonymous prepaid cards are only used for pay for the purchase of goods and services without cash withdrawal;

d) Supplementary card issued to a supplementary cardholder aged under 15 years is not used to withdraw cash but only for pay for purchase properly as agreed upon in writing between the card issuer and the principal cardholder.

Article 18. Prudential measures in the card usage

1. Card issuer:

a)6Take self responsibility in risk management upon their issuance of cards registered;

b) Provide customers with guidelines for card services, process of card usage, risks possibly taken during the card usage and actions against problems;

c) Initiate prudential measures and risk avoidance for card transactions in conformity with the electronic banking risk management principles; keep confidential information relating to card operations; to ensure the uninterrupted and safe operation of the system of infrastructure and software used in the administration of card issuance and payment activities;

d) Set up and operate a round-the-clock hotline to receive and take prompt actions against information sent by cardholders;

dd) Cooperate with acquirers, switching companies and clearing companies in initiation of prudential measures for card transactions; and in management of risks possibly taken by other entities according to rules of risk management in internet banking activities;

e) Provide information about cards in doubt about fraud for authorities in charge of investigation of card-related crime; check and cooperate with authorities in update of the list of cards to be rejected for payment or in doubt about fraud that are provided for acquirers and merchants; cooperate with authorities and related entities in card-related crime prevention and fighting and actions against such as prescribed by law;

g) Check documentation and closely monitor to ensure the card-based remittance is conducted for the proper purposes, within the card limit and in accordance with regulations of law on foreign exchange management.

2. Each cardholder and the person authorized to use an organization’ card must preserve the card, ensure security of the PIN, other authorization numbers, card information, transaction information without any disclosure; notify and cooperate with the card issuer in actions against cases of card losses or make related trace requests or complaints.

3. Each acquirer must cooperate with card issuers, switching companies, clearing companies, merchants, authorities and relevant entities in card-related crime prevention and fighting.

4. Each merchant must implement all professional measures and processes and ensure the security of cardholders’ information, quickly discover card-related fraud acts as guided by the acquirer and take responsibility for any damage caused by its non-observance of regulations of the acquirer.

5. When the card issuer or the acquirer enters into an agreement on card issuance and payment with another organization, such agreement must contain the responsibility of the organization for observance of regulations of law on protection of personal data, personal privacy, security of documents, card information, card transactions and accounts of the cardholder.

Article 19. Actions against cases of card losses or card disclosure

1. When a card is lost or a card’s information is disclosed, the cardholder must promptly notify the card issuer.

2. Upon the receipt of the notification, the card issuer shall lock the card and cooperate with relevant entities to carry out necessary operation to prevent possible damage and send another notification to the cardholder. The time limit for the actions against notification received from the cardholder does not exceed 5 working days for the card whose BIN is issued by the State Bank or 10 working days for the card whose BIN is issued by an international card association from the date on which the notification is received.

3. In case where such card is misused that cause damage, the card issuer and the cardholder shall allocate their equivalent responsibility and negotiate the measures for damage. In the event that both parties fail to reach a consensus on the measures for damage, regulations of law shall apply.

Article 20. Tracing and actions against complaints during the card usage

1. If there is any mistake or any doubt about a mistake that is related to card transaction, the cardholder is entitled to send a trace request to the card issuer.

2.7The card issuer shall provide specific regulations on the time limit for a trace request provided that it is at least 60 days from the date on which the transaction for which the trace request is made proceeds.

“2a.8The card issuer must apply at least two methods of receipt of trace requests and complaints from the cardholders, including via telephone exchange (with recording and round-the-clock operation) and through the card issuer’s offices that ensures the basic information that the cardholder has provided for the card issuer.

2b.9Upon the request for card locking by a cardholder who doubts fraud or loss related to the bank card, the card issuer shall lock the card and bear all financial losses incurred by the cardholder upon the bank usage after the locking time.

2c.10The card issuer shall make the form of trace request or complaint to be used by cardholders. In case of receiving information via telephone exchange, the card issuer shall require the cardholder to provide a trace request or complaint using the above-mentioned form within a given time specified by the card issuer that serves as the official basis or the trace request or complaint. In the case where another person is authorized to make the trace request or complaint, the cardholder shall comply with law on authorization.

3.11The card issuer must process the trace request or complaint made by the cardholder and reply within a given time specified as follows: 

a) Regarding bank cards whose BINs are issued by the State Bank, the time limit for processing the trace request or complaint shall be specified in the agreement on card issuance and usage provided that it does not exceed 45 working days from the receipt of initial trace request or complaint according to one of the methods of receipt prescribed in Point 2a of this Article;

b) Regarding bank cards whose BINs are issued by international card associations, the time limit for processing the trace request or complaint shall be specified in the agreement on card issuance and usage.

3a.12Processing results of trace requests and complaints:

a) Within 05 working days from the notification of results of trace requests and complaints, the card issuer shall reimburse, upon agreement or in accordance with applicable law provisions, damage incurring through no fault of the cardholder and/or not due to force majeure events agreed upon in the agreement. In case of losses incurred by faults of relevant parties (acquirer, switching company, international card association, or merchant), the party at fault shall reimburse the card issuer for any loss according to their agreement in accordance with regulations of law;

b) If it fails to determine reasons or which party at fault while  the deadline for trace requests or complaints agreed upon in the agreement on card issuance and usage expires, the card issuer shall, within succeeding 15 working days, agree with the cardholder about the remedial measure or reimburse the card holder for damage until the final conclusion determining faults and responsibility of parties is made by the competent authority.

3b.13If the case shows any sign of crime, the card issuer shall notify the competent authority in accordance with law on criminal procedures and send a report to the State Bank (via Department of Payment, branches of the State Bank of provinces or cities); and notify the cardholder in writing of progressing actions against trace request or complaint. The processing of results of trace request or complaint shall be responsible by the competent authority. If the competent authority notifies that the results do not show any sign of crime, the card issuer shall, within 15 working days from the conclusion of the competent authority, agreed with the cardholder about the solutions for results of trace request or complaint.

4.14  In the case where the card issuer, cardholder and relevant parties fails to reach an agreement and/or disagree with the processing of trace request or complaint, the dispute shall be settled in accordance with regulations of law.

Chapter IV

PAYMENT AND STATEMENT OF CARD TRANSACTION

Article 21. Organizations eligible for processing card payments

1. Commercial banks, banks for social policies, and branches of foreign banks are permitted to process card payments provided that their licenses or amended licenses issued by the State Bank indicate the card services.

2. Banks for social policies are permitted to process card payments as prescribed by the Government and the Prime Minister.

3. Acquirers licensed to conduct foreign exchange transactions are permitted to process payments of cards whose BINs are issued by international card associations.

Article 22. Acquirers

1. The acquirer must cooperate with relevant parties in formulation of processes and procedures for card payments, which clarify processes of card transactions and responsibility of relevant parties in accordance with this Circular and regulations in force on internet banking activities; management and operation, prudential measures and continuous operation of equipment used for card payments.

2. Processing card payments:

a) In case the acquirer and the card issuer is the same, the acquirer shall take responsibility for the entire process of card payments and deal with all problems arising thereof;

b) In case the acquirer and the card issuer is not the same, the process of card payments shall be carried out as agreed upon by the acquirer and the switching company, card issuer, international card association and relevant parties in terms of processes and procedures for card payments.

3. Responsibilities of the acquirer towards merchants:

a) Draw up, negotiate and conclude card payment agreements with merchants;

b) Install point of sale terminals, set up transmission lines and provide other technical in service of card payments;

c) Provide merchants with guidance on use of point of sale terminals, processes of card payments, measures for detecting fraud and security of cardholders’ information;

d) Accept and process trace requests and complaints filed by merchants;

dd) Monitor the merchants’ execution of the card payment agreement and fulfillment  of requirements for card payments; in case it is discovered that a merchant collects additional fees and/or charges from the cardholders, the acquirer shall take necessary actions and notify the competent authorities.

4. The acquirer must emboss name (abbreviated name or trade logo) of the switching company of which the acquirer is a member on the ATM card of the acquirer and on the POS of the acquirer at the merchant s premises.

5. The acquirer must not practice any discrimination in payment of cards whose BINs are issued by the State Bank and cards whose BIN are issued by international card associations; the acquirer must not enter into any agreement on restriction or prevention of the acceptance of transactions conducted through co-branded cards with other entities.

6. The acquirer must provide sufficient and accurate information and documents on card payment at the request of the State Bank.

Article 23. Merchants

1. Merchants must notify publicly in writing that they does not practice price discrimination or collect any fees or charges from payments for purchase of goods and/or services by cards in comparison with payments in cash. The merchant must refund, directly or through the acquirer, a sum of price difference or additional fees and/or charges collected illegally to the cardholder.

2. The merchant must adhere to the agreement concluded with the acquirer.

3. The merchant is entitled to make a trace request or file a complaint against a mistaken transaction or a transaction in doubt about mistake and claim damage as prescribed by law.

Article 24. Switching companies and clearing companies

1. The switching and clearing for card transaction between card issuers and acquirers relating to transactions of cards whose BIN issued by the State Bank  shall be conducted by switching companies or clearing companies licensed by the State Bank.

2. The switching for transactions of cards whose BIN issued by an international card association between card issuers and acquirers with the international card association shall be conducted through a payment gateway of a switching company licensed to be operated by the State Bank.

3. The clearing of card transactions whose BIN issued by international card associations shall be conducted as agreed upon between card issuers, acquirers and relevant parties.

4. The switching company and the clearing company shall enter into an agreement with members on standards, rules, professional procedures and other regulations on switching and clearing of card transactions in accordance with regulations of law.

5. The switching company and the clearing company shall facilitate the system connected with card issuers, acquirers and international card associations directly as agreed by contracting parties to ensure the safe and continuous switching services and other services provided for members and international card associations.

Article 25. International card associations

1. Each international card association shall conclude an agreement with switching companies licensed by the State Bank in accordance with Clause 2 Article 24 of this Circular.

2. Each international card association may not give restrictions to card issuers and acquirers for the purposes of:

a) Unfair treatment in terms of brand names of association organizations to be embossed on cards;

b) Restriction on rights of merchants to select switching companies based on regulations on fees and charges and other obligations.

Article 26. Settlement of results of clearing for card transactions

The statement of financial liabilities incurring from payments according to clearing for card transactions between card issuers and acquirer must be conducted by an organization licensed by the State Bank.

Article 27. Rejection of card payments

1. Card issuers, acquirers and merchants must reject the card payment in any of the following cases:

a) Use a card in a prohibited card transaction as prescribed in Article 8 of this Circular;

b) The card has been lost as notified by the cardholder;

c) The card is expired;

d) The card is locked.

2. Card issuers, acquirers and merchants may reject the card payment as agreed in any of the following cases:

a) The balance on the payment deposit account, the credit limit or the overdraft limit (if any) is insufficient for the payment;

b) The cardholder breaches any of the regulations of the card issuer on the cases of rejection of card payments as agreed upon by the cardholder and the card issuer.

3. The card issuer shall notify in writing or a legally valid data message the cases specified in Clause 1 or Clause 2 of this Article to the acquirer; the acquirer shall notify it to the merchant.

4. A notification on the rejection of a card takes effect at the time the involved party in card payment activities receives the notification in the form of a document or legally valid data messages. In case where an involved party still process the payment of such card regardless of receipt of the notification resulting in the misuse of the card, the contracting parties shall determine responsibility according to their agreement.

Chapter V

REPORTING, SUPLLY OF INFORMATION, AND HANDLING OF BREACHES

Article 28. Reporting

1. Card issuers, acquirers, switching companies and clearing companies shall send regular reports in accordance with statistical reports and regulations of the State Bank.

2. Upon the issuance of internal regulations on card issuance and payments, the card issuer and acquirer must send them to the State Bank for supervision.

3. At least 15 days before a schedule of service fees and charges applies (new/amended schedule), the card issuer must send such schedule to the State Bank for supervision.

4. Card issuers, acquirers and card transaction clearing service providers shall send reports to the State Bank in the following cases:

a) Upon specific requests of the State Bank for state management purposes;

b) Upon irregular card-related occurrences affecting operation of card issuers or acquirers.

Article 29. Information provision

1. card issuers, acquirers, merchants, switching companies, clearing companies and international card associations must ensure the confidentiality of card information, cardholders, card transactions and provide information only at the request of the cardholder, competent authorities or as prescribed by law.

2. Card issuers and acquirers shall enter into agreements on information sharing in line with card operation as prescribed by law.

3. International card associations shall provide information about transactions of cards whose BINs are issued by international card associations at the request of the State Bank for state management.

Article 30. Actions against violations

Organizations and individuals that violate the regulations in this Circular shall, depending on the nature and severity of their violations, be administratively handled or, in case of serious violation, liable to criminal prosecution; if causing damage, they shall pay compensations therefor in accordance with law.

Chapter VI

IMPLEMENTATION15

Article 31. Responsibilities of State Bank units

1. The Payment Department:

a) Monitor the implementation of Circular and act as advisor for the Governor of the State Bank to handle difficulties arising during the implementation of this Circular;

b16) Receive and monitor notification of card models issued, and of suspension of issuance of cards of card issuers.

2. Bank Supervision and Inspection Agency; branches of the State Bank of provinces and central-affiliated cities

Carry out inspection of observance of this Circular, take actions against violations within their competence and notify the Payment Department and relevant entities of results.

Article 32. Effect

1. This Circular takes effect on August 15, 2016, except for Clause 2 of this Article.

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

3. From the effective date of this Circular, To annul the regulations:

a) Decision No. 20/2007/QD-NHNN dated May 15, 2007 on issuance, use and payment of bank cards and provision of bank card support services;

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

c) Article 3 of Circular No. 23/2011/TT-NHNN dated August 31, 2011 of the Governor of the State Bank on implementation of plans for simplifying administrative procedures in the fields of payment and other fields as prescribed in Resolution of the Government simplifying administrative procedures within the competence of the State Bank of Vietnam.

Article 33. Implementationorganization

The Chief officers, Directors of Payment Department, Heads of affiliates of the State Bank of Vietnam, Director of branches of the State Bank of provinces and central-affiliated cities, Presidents of the Board of Directors, Presidents of the Member assembly, General Directors (Directors) of credit institutions, branches of foreign banks, switching companies and clearing companies, and relevant organizations and individuals shall implement this Circular./.

1Circular No. 30/2016/TT-NHNN on amendments to Circulars on provision of payment services and intermediary payment services has the following bases:

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

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

Pursuant to the Law on negotiable instruments No. 49/2005/QH11 dated November 29, 2005;

Pursuant to Government s Decree No. 101/2012/ND-CP dated November 22, 2012 on non-cash payments; Decree No. 80/2016/ND-CP dated July 1, 2016 on amendments to Government s Decree No. 101/2012/ND-CP dated November 22, 2012 on non-cash payments;

Pursuant to the Government s Decree No. 156/2013/ND-CP dated November 11, 2013 defining the functions, tasks, entitlements and organizational structure of the State bank of Vietnam;

At the request of the Director of the Payment Department;

The Governor of the State bank of Vietnam promulgates a Circular on amendments to Circulars on provision of payment services and intermediary payment services.

2This Clause is amended as prescribed in Clause 1 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

3This Clause is annulled as prescribed in Clause 11 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

4This Clause is amended as prescribed in Clause 2 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

5This Clause is amended as prescribed in Clause 3 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

6This Clause is amended as prescribed in Clause 4 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

7This Clause is amended as prescribed in Clause 5 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

8This Clause is amended as prescribed in Clause 6 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

9This Clause is amended as prescribed in Clause 6 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

10This Clause is amended as prescribed in Clause 6 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

11This Clause is amended as prescribed in Clause 7 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

12This Clause is amended as prescribed in Clause 8 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

13This Clause is amended as prescribed in Clause 8 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

14This Clause is amended as prescribed in Clause 9 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

15Articles 5, 6 and 7 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016 are specified as follows:

“Article 5. Effect

This Circular takes effect on November 28, 2016.

Article 6. Transitional provisions

With regard to contracts/agreements concluded prior to the effective date of this Circular, the providers of payment services and intermediary payment services shall notify their customers of new regulations on receipt and processing of trace requests and complaints under methods prescribed in the contracts/agreements and on their websites; and re-conclude another contract/agreement with customers at their requests. The concluded contract/agreement shall be amended in accordance with this Circular.

Article 7. Implementation

The Chief officers, Director of Payment Department, Heads of affiliates of the State bank, Directors of branches of the State Bank of provinces and central-affiliated cities, Presidents of the Board of Directors (Member assembly), General Directors (Directors) of providers of payment services or intermediary payment services, and relevant entities shall implement this Circular./”.

16This Clause is amended as prescribed in Clause 10 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.

17This Appendix is replaced as prescribed in Clause 12 Article 1 of Circular No. 30/2016/TT-NHNN dated October 14, 2016 of the Governor of the State bank of Vietnam on amendments to Circulars on provision of payment services and intermediary payment services, which comes into force from November 28, 2016.