CIRCULAR 39/2014/TT-NHNN

December 11, 2014

Guiding on payment intermediary service

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

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

At the proposal of the Director of Payment Department;

The State Bank Governor promulgates the Circular guiding on the payment intermediary services; 

Chapter I. GENERAL PROVISIONS

Article 1. Scope of application and subjects of application

This Circular provides guidelines on payment intermediary services applied for organizations, individuals related to the supply and use of payment intermediary services.

Article 2. Types of payment intermediary services

1. Provision of electronic payment facilities include:

a) Financial telecommunications services;

b) Electronic clearing services;

c) Electronic payment services;

2. Payment service support includes:

a) Collection off-payment and payment off-payment support service;

b) Money transfer support service;

c) Auto service;

Article 3. Interpretation of terms

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

1. Financial telecommunications service is the service to provide facilities ensuring the connection, transfer and handling with electronic data to perform payment transactions by ATM, POS, Internet, mobile phone and other electronic transactions among the providers of payment service and/or the providers of payment intermediary service.

2. Electronic clearing service is the service to provide facilities to perform the receipt, contrast of data and calculate the amount of money that need to be collected and paid after being cleared between participants being the providers of payment service or the providers of payment intermediary service to settle for related parties.

3. Electronic payment service is the service to provide facilities to perform the connection among units accepting payment and banks to support customers in electronic commercial transactions, paying bills and other electronic payment service.

4.  Payment collection support service is the service supporting banks to perform payment collection service for customers who have accounts, cards at the bank through receiving, handling and sending electronic data and calculate results; cancelling off-payment to settle for related parties.

5. Electronic transfer service is the service supporting the receipt; transferring and handling with data in electronic transfer transactions of the bank or being entrusted by the bank.

6. Auto payment is the service to provide customers an electronic account created by the providers of payment service on transferable things (chip, SIM of mobile phone, computer…), it allows to store value of a currency that is ensured by value of the deposit that is equivalent to amount of money transferred from guarantee payment account of customers at the bank into guarantee payment account of the providers of auto payment service at the rate 1:1 and it is used as means of non-cash payment.

7. Guarantee payment account is payment account in Vietnam dong of the providers of payment intermediary service opened at commercial banks to guarantee for the provision of payment intermediary service.

8. Units accepting payment are organizations, individuals providing goods, services and accepting payment through one or some payment intermediary services.

Chapter II. LICENSE FOR PROVIDING PAYMENT INTERMEDIARY SERVICES

Article 4. Issuing, revoking, and reissuing the Licenses

 1. The Vietnam State Bank (hereinafter referred to as the State Bank) shall issue, revoke, and reissue the Licenses for providing payment intermediary services (hereinafter referred to as the Licenses) as stipulated under Article 15 and Article 16 of the Decree No. 101/2012/ND-CP dated November 22, 2012 of the Government on non-cash payments (hereinafter referred to as the Decree No. 101/2012/ND-CP).

2. Organizations other than banks subject to be granted for licenses for providing one or some payment intermediary services as stipulated under Article 2 of the Decree No. 101/2012/ND-CP and other regulations on facilities, infrastructure shall be specified as follows:

a) For financial telecommunications services, electronic clearing services, the providers of payment services must be finalized the clearing results among related parities by an organization;

b) For payment support service for customers that have accounts at many different banks, providers of payment services must connect with a financial telecommunications service, electronic clearing service;

Article 5. Procedures, orders and documents for issuing, revoking, and reissuing the Licenses

1. Procedures, orders and documents for issuing, revoking, and reissuing the Licenses shall be implemented according to Article 16 of the Decree No. 101/2012/ND-CP.

2. The dossier of application for the Licenses to provide payment intermediary services shall be implemented according to Clause 2 Article 16 of the Decree No. 101/2012/ND-CP and documents to prove that it meets requirements at Point a, Point b of Clause 2 Article 4 of this Circular.

3. The application shall follow the form as stipulated under Appendix 01 promulgated together with this Circular.

4. Organizations being granted the Licenses to provide payment intermediary service must pay the charge of license issuance as stipulated.

Article 6. Use of the Licenses

1. Organizations being granted the Licenses must use its correct name and operate as stated in the Licenses.

2. It is prohibited to forge, falsify, leasing and lending the Licenses; entrusting to other organizations, individuals to perform permitted operations as stated in the Licenses.

Chapter III. OPERATION OF PAYMENT INTERMEDIARY SERVICE

Article 7. Risk management, security

1. The providers of payment intermediary services must build and implement internal regulations and comply with regulations stipulated by the State Bank on principles of risk management on electronic banking activities, complying with current regulations on prevention and combat of money laundering and other regulations of the Vietnamese laws.

2. The providers of payment intermediary services must implement requirements on security of informatics system on banking activities; security and safety for providing electronic banking service as stipulated by the State Bank.

3. The providers of payment intermediary services must comply with regulations on establishing, using, storing electronic documents as stipulated by the law on electronic transactions in banking activities.

Article 8. Ensuring solvency 

1. The providers of payment and collection support service and providers of auto payment must open guarantee payment account to ensure for the provision of this service. The balance maintained is not lower than the total amount received from customers that hasn’t been paid to units accepting payment (for collection of payment) or total balance of auto payment of customers) at the same time.

2. Guarantee payment account is only used for:

a) Paying for units accepting the payment;

b) Returning money to customers using services when having requests;

Article 9. Operation of providing auto payment

1. Providers of auto payment are not allowed to:

a) Issue more than one time for auto payment for one account at one bank;

b) Provide credit for customers of using auto payment, paying interest on the balance or any action that can raise the amount of money on auto payment;

2. The providers of auto payment must have tools for the State Bank to supervise and examine the real amount of money by the time on auto payment and total amount of money over solvency account of the providers of auto payment at banks.

3. Payment into auto payment, withdraw money out of auto payment of customers must be done through solvency account of customers at the bank.

Chapter IV. RIGHTS AND OBLIGATUONS OF RELATED PARTIES

Article 10. Rights of the providers of electronic telecommunication service

1. Providing conditions to use the service; requesting customers to provide related information adequately and exactly when using services and in the course of using services; refusing to provide services when the customer fails to meet conditions to use services and fails to comply with regulations as stipulated by the providers or violate other regulations.

2. Regulating measures to ensure the safety for using services;

3. Regulating kinds of charges and rate of charges in accordance with current regulations;

4. Selecting banks, other organizations as partners to sign the contract of providing and developing services on the basis of ensuring safety, efficiency and in accordance with the contents stated in the Licenses and regulations;

5. Other rights as stated in the Contract signed with banks, customers and partners in accordance with the law;

Article 11. Responsibilities of the providers of electronic telecommunications service

1. To customers:

a) Guiding customers how to use the service;

b) Handling with disputes, giving feedback to customers;

c) Coordinating with customers to examine and check daily transaction documents;

dd) Providing information on transactions made through the system of the providers when having requests from the customers;

e) Publishing kinds of charges and rate of charges to customers before using the service;

2. Coordinating with customers and partners to implement measures on risk management, ensuring safety and security when using and providing services;

3. Other obligations as stated in the contract signed with banks, customers and partners.

Article 12. Rights of the providers of payment support service

1. Providing conditions to use the service; requesting customers to provide related information adequately and exactly when using services and in the course of using services; refusing to provide services when the customer fails to meet conditions to use services and fails to comply with regulations as stipulated by the providers or violate other regulations.

2. Regulating measures to ensure the safety for using services;

3. Regulating kinds of charges and rate of charges in accordance with current regulations;

4. Selecting banks, other organizations to sign contract of providing and developing services on the basis of ensuring safety, efficiency and in accordance with the contents stated in the Licenses and regulations;

5. Other rights as stated in the Contract signed with banks, customers and partners in accordance with the law;

Article 13. Responsibilities of the providers of payment support service

1. To customers:

a) Regulating and announcing provisions and conditions on using the services through suitable channels (websites, flyers and contract form/sample to register to use services…); the providers of services and/or coordinating with banks must negotiate with customers the following issues before using services:

– Form of payment;

– Kinds of charges and rate;

– Balance account report;

– Procedures to report on loss when using the service, procedures of sending disputes including place, time and forms of handling with disputes;

– Policy of returning money including conditions, procedures, time and fees;

– Rights and obligations of customers;

– Obligations of customer if arising problems;

– Address, phone number of the providers of payment intermediary service;

b) Guiding customers how to use the service;

c) Examine, confirm and update information of customers;

d) Handling with disputes;

dd) Compensating for customers due to technical errors, disclosing customers’ confidential information and other faults of the providers;

e) For auto payment, the providers shall request customers to open an account at the bank before using the service; providing information on payment transactions, balance, limit related to using the service when being requested by customers;

2. To the bank

a) Meeting obligations for transactions using the services as agreed between the providers of payment intermediary service and the bank according to the law;

b) Coordinating with the bank to examine and update information of customers who register to use the service;

c) Coordinating with the bank and partners to examine and check daily transaction documents;

3. The providers must have agreements in writing with the bank, partners on provisions when providing the service, request the units accepting the payment to make commitments on not adding extra charges when customers process the payment though payment intermediary service under any form. If they fail to comply with commitments, the providers shall terminate the contract and request the units accepting the payment to compensate for customers or apply other reasonable measures according to commitments as agreed among parties.

4. Processing measures for risk management, ensuring safety and security for the provision of service;

5. Other obligations as stated in the contract signed with the bank, partners;

Article 14. Rights of the bank

1. Selecting organizations other than banks to cooperate and test one or some payment intermediary services;

2. Signing contract of using electronic telecommunications service and/or cooperating to implement payment support service with the providers of payment intermediary service;

3. Requesting the providers of payment intermediary service to provide necessary information related to transactions through payment intermediary service;

4. Other rights as stated in the contract and agreements on providing service for the providers of payment intermediary service;

Article 15. Responsibilities of the bank

1. Only cooperating with organizations not being banks and being permitted by the State Banks;

2. Coordinating with the providers of payment intermediary service to examine, check the daily transaction document;

3. Paying for transactions as stipulated by the State Bank and as stated in the contract of providing services for the providers of payment intermediary service;

4. Managing the solvency balance of the providers of payment intermediary service according to the contract signed with the providers of payment support service and regulations under this Circular;

5. Coordinating with the providers of payment intermediary service to examine, check and update information of customers using payment support service;

6. Coordinating with the providers of payment intermediary service to guide measures, professional procedures and security in payment through payment intermediary service for units accepting payment and customers, the bank shall compensate for customers and related parties if the bank fails to comply with this regulation;

7. Coordinating with the providers of payment intermediary service to build orders and procedures to handle with disputes related to transactions through payment intermediary service;

8. Other obligations as stated in the contract signed with the providers of payment intermediary service, units accepting payment, customers.

Chapter V. REPORTING, PROVIDING INFORMATION AND HANDLING WITH VIOLATIONS

Article 16. Reports, information provision

1. The providers of payment intermediary service shall report to the State Bank (through Department of Payment) quarterly and annually in accordance with contents as regulated under Appendix 02 promulgated together with this Circular. The deadline to submit the periodic report is no later than the fifth of the first month of the next quarter for quarter report and no later than January 15^th of the following year for annual report.

2. The providers of payment intermediary service and banks shall report to the State Bank information related to payment intermediary transactions in the following cases:

a) At the request of the State Bank to serve for State management;

b) When there are any arising irregular events affecting operation of the providers of payment intermediary service and banks or other organizations, individuals;

c) When having issues that interrupt operations through payment intermediary services;

3. The providers of payment intermediary service and banks shall keep information related to transactions through payment intermediary services, personal information and account of customers confidential and they are only disclosed in the following cases:

a) At the request of customers;

b) According to the law;

Article 17. Handling with violations

Organizations, individuals violating regulations under this Circular shall be applied measures on administrative sanctions depending on its nature, and seriousness. If violations are serious, they may be liable for criminal prosecution; if there are any damages, they must compensate according to the law.

Chapter VI. IMPLEMENTATION ORGANIZATION

Article 18. Department of Payment

1. Acting as focal point to receive and coordinate with related units to appraise dossiers of application for the Licenses;

2. Within 15 working days since the receipt of the full dossier as stipulated under Clause 2 Article 16 of the Decree No. 101/2012/ND-CP, the Department of Payment shall consider and send it to related Departments, units under the State Bank for taking opinions.

3. Summarizing opinions from related units, appraising dossiers and presenting to the State Bank Governor for decision or refusal to issue the Licenses;

4. Acting as focal point to present to the State Bank Governor in handling with problems on issuing, revoking and issuing the Licenses;

5. Acting as focal point to receive the report on implementing payment intermediary services of the providers of payment intermediary service and banks;

6. Supervising and acting as focal point to provide consultation for the State Bank Governor in managing, supervising operations of payment intermediary services of the providers of payment intermediary service;

Article 19. Department of Informatics Technology

1. Within 15 working days since the receipt of the document from Department of Payment, the Department of Informatics Technology shall consider, judge and send a document to the Department of Payment to confirm technical conditions, technological solutions, security, human resources to perform payment intermediary service of the applicant;

2. Coordinating with the Department of Payment to supervise and examine the safety, security and risk management in electronic transactions of the providers of payment intermediary services;

Article 20. Banking Inspection and Supervision Department

Supervising, inspecting organizations, individuals related to the implementation of this Circular.

Chapter VII. IMPLEMENTATION PROVISIONS

Article 21. Effect

This Circular takes effect on March 01, 2015.

Article 22. Transitional provisions

After 9 months since the effective day of this Circular, organizations other than being banks permitted by the State Bank to perform the provision of payment intermediary service as stipulated under Article 2 of this Circular shall complete the procedures and send the dossier of application for the Licenses as stipulated under Article 5 of this Circular to the State Bank for consideration.

Nine months after the effective day of this Circular, documents issued by the State Bank on issuing the licenses for organizations other than being banks to perform the provision of payment service, payment intermediary services shall be ceased to be effective.

Article 23. Implementation responsibilities

The Chief of Offices, Directors of the Department of Payment and heads of units under the State Bank, Directors of the State Bank’s branches in provinces and central-affiliated cities, presidents of Board of Directors (Members’ Council), General Directors (Directors) of the providers of payment intermediary service shall organize implementation of this Circular.