CIRCULAR

ON PROVISION OF INTERMEDIARY PAYMENT SERVICES

The Circular No. 39/2014/TT-NHNN dated December 11, 2014 by the Governor of the State Bank of Vietnam regulating the provision of intermediary payment services, and coming into force as of March 01, 2015, is amended and supplemented by the following:

The Circular No. 20/2016/TT-NHNN dated June 30, 2016 by the Governor of the State Bank of Vietnam providing amendments to the Circular No. 36/2012/TT-NHNN dated December 28, 2012 on the installation, management, operation and security of automated teller machines and the Circular No. 39/2014/TT-NHNN dated December 11, 2014 on guidelines for intermediary payment services, and coming into force as of July 01, 2016.

The Circular No. 30/2016/TT-NHNN dated October 14, 2016 by the Governor of the State Bank of Vietnam providing amendments to Circulars on provision of payment services and intermediary payment services, and coming into force as of 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 the Government's Decree No. 156/2013/ND-CP on November 11, 2013 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

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At the request of the Director of the Department of Payment;

The Governor of the State Bank of Vietnam promulgates a Circular to introduce regulations on the provision of intermediary payment services. 1,2

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

This Circular provides for the provision of intermediary payment services applied to the organizational and individual entities (hereafter referred as entities) involved in the provision and use of intermediary payment services.

Article 2. Types of intermediary payment services

1. Services of providing electronic payment infrastructure, including:

a) Financial switch service;

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c) Electronic payment gateway service.

2. Support services for payment services, including:

a) Collection and payment services;

c) Support service for electronic funds transfer;

c) Digital wallet service.

Article 3. Interpretation of terms

In this document, these terms shall be construed as follows:

1. Financial switch service is a service providing technical infrastructure to connect, transmit and process electronic data in order to make payment transactions via ATMs, POS, Internet, mobile phones and other electronic transaction channels among providers of payment services and/or among providers of intermediary payment services.

2. Electronic clearing service is a service providing technical infrastructure to receive, compare payment data and calculate the results of receivables and payables after the clearing among the participating parties that are providers of payment services or providers of intermediary payment services in order to make the payments to the parties involved.

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4. Collection and payment service is a service assisting banks in making collection and payment for customers owning payment accounts and/or bank cards at such banks by means of receiving, processing and sending electronic data messages and calculating collection and payment results; cancelling the collection or payment to make payment to the parties involved.

5. Support service for electronic funds transfer is a service assisting the receipt, transmission and processing of data in the electronic funds transfer of a bank or as mandated by that bank.

6. 3 (abrogated)

7. Payment guarantee accounts refer to VND payment accounts opened in commercial banks by a provider of intermediary payment services with the aim of ensuring its provision of intermediary payment services.

8. Payment acceptance unit refers to the entity that provides goods or services and accepts payments through one or some intermediary payment services.

Chapter II

LICENSE TO PROVIDE INTERMEDIARY PAYMENT SERVICES

Article 4. Issuance, revocation and re-issuance of License

1. The State Bank of Vietnam (hereinafter referred to as the State Bank) shall issue, revoke and re-issue Licenses to provide intermediary payment services (hereinafter referred to as the License) as per regulations in Article 15 and Article 16 of the Government’s Decree No. 101/2012/ND-CP dated November 22, 2012 on non-cash payment (hereinafter referred to as the Decree No. 101/2012/ND-CP).

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Article 5. Procedures and formalities for issuance, revocation and re-issuance of License

1. Procedures and formalities for issuance, revocation and re-issuance of the License shall comply with regulations in Article 16 of the Decree No. 101/2012/ND-CP.

2. 5 The application for the License to provide intermediary payment services is prescribed in Clause 2 Article 16 of the Decree No. 101/2012/ND-CP and the Government's regulations that prescribe amendments or replacements (if any).

3. The application form for the License shall follow the form stated in the Annex No. 01 enclosed herein.

4. Any entities granted the License to provide intermediary payment services must pay fees for processing of their applications for the License as prescribed by laws.

Article 6. License use

1. A holder of the License must use its correct name and operate in accordance with the contents specified in the License.

2. It is strictly forbidden to forge, erase, transfer, lease or lend the License; mandate or appoint another entity as an agency to provide the licensed services.

Chapter III

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Article 7. Risk management, safety guarantee and security

1. Providers of intermediary payment services must formulate and implement internal regulations and comply with the regulations by the State Bank on principles for risk management in electronic banking operations, and comply with current regulations on anti-money laundering and other relevant laws of Vietnam.

2. Providers of intermediary payment services must comply with requirements for guarantee of safety and security of information technology systems in banking operations and the provision of electronic banking services in accordance with regulations adopted by the State Bank.

3. Providers of intermediary payment services must comply with regulations on the establishment, use and retention of electronic documents as per regulations of the Law on electronic transactions in banking sector.

Article 8. Solvency guarantee

1. Providers of collection and payment services and providers of digital wallet service must open payment guarantee accounts to ensure their provision of the said services. The balance of the payment guarantee account must be not less than the total amount of money received from customers but payments are not yet made to payment acceptance units (for collection and payment services) or the total balance of all digital wallets of customers (for digital wallet service) at the same time.

2. A payment guarantee account may only be used to:

a) Make payments to payment acceptance units;

b) Refund to customers using the services upon their request.

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1. A provider of digital wallet service is not allowed to:

a) Issue more than 01 (one) digital wallet to a customer’s payment account opened at a bank;

b) Extend credit to customers using digital wallets, pay interests on the balances of digital wallets or take any actions which may increase the monetary value on digital wallets.

2. Providers of digital wallet service must provide instruments so that the State Bank may check and monitor in real time the total amount of money of customers on the digital wallets and the total amount of money in the accounts to ensure payments of providers of digital wallet services at the banks.

3. Money shall be deposited to and withdrawn from digital wallets through the payment accounts of customers at the banks.

Chapter IV

RIGHTS AND RESPONSIBILITIES OF THE PARTIES INVOLVED

Article 10. Rights of providers of electronic payment infrastructure services

1. Define conditions for using services; request customers to provide complete and accurate information relating to the services when using the services; refuse to provide services if the customers do not meet the conditions for using the services, or do not comply with regulations announced by the providers of services or make breach of other agreements.

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3. Stipulate types and rates of service fees in conformity with prevailing laws.

4. Select and enter into contracts for provision and development of services with qualified banks or other organizations on the basis of safety guarantee, efficiency and conformity with the licensed contents and prevailing laws.

5. Exercise other rights as defined in contracts signed with the banks, customers and partners in accordance with the laws.

Article 11. Responsibilities of providers of electronic payment infrastructure services

1. Responsibilities towards customers:

a) Instruct customers to use the services;

b) Resolve or respond to the complaints and/or trace requests from customers;

c) Compensate customers for damage caused by technical errors, the disclosure of customer’s information and other errors of the providers of services;

d) Coordinate with customers in checking and verifying daily transaction data;

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e) Announce types and rates of service fees to customers before they use the services.

2. Coordinate with customers and other partners in implementing measures for risk management, safety guarantee and security during the provision and use of services.

3. Fulfill other obligations as defined in contracts signed with the banks, customers and partners.

Article 12. Rights of providers of support services for payment services

1. Define conditions for using services; request customers to provide complete and accurate information relating to the services when using the services; refuse to provide or suspend the services if the customers do not meet the conditions for using the services, or do not comply with regulations announced by the providers of services or make breach of other agreements.

2. Adopt safety measures for using the services.

3. Stipulate types and rates of service fees in conformity with prevailing laws.

4. Select and enter into contracts for provision and development of services with qualified banks or other organizations on the basis of safety guarantee, efficiency and conformity with the licensed contents and prevailing laws.

5. Exercise other rights as defined in contracts signed with the banks, customers and partners in accordance with the laws.

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1. Responsibilities towards the users of services:

a) Define and notify the terms and conditions on using of services through appropriate channels (websites of service providers, leaflets and contract forms/ registration forms of using services, etc.). The service provider shall, together with or in cooperation with a bank, come to an agreement with customers of the following issues before they use the services:

- Payment methods;

- Types of fees and charges;

- Forms of transaction statement and notice of balance provided to customers during their use of services;

- Methods of receiving trace requests, complaints; time limit for processing trace requests, complaints, and results thereof in accordance with Points d, d1, d2, d3, d4, dd, dd1 and dd2 of this Clause 6;

- Force majeure events 7;

- Refund policy including conditions, procedures, time and refund cost;

- Rights and responsibilities of customers;

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- Address and contact telephone number of the provider of intermediary payment service;

b) Instruct customers to use the services;

c) Check, verify and update full and accurate information of customers registering to use the services;

d) 8 Apply at least two methods of receipt of trace requests and complaints, including via telephone exchange (with recording and round-the-clock operation) and through the provider’s head office/branches; ensure the accuracy of basic information which has been provided by the customers to the service provider;

d1) 9 Make a form of trace request or complaint to be used by customers. In case of receiving information via telephone exchange, the provider shall require the customer to provide a written trace request or complaint using the above-mentioned form within a given time limit specified by the provider in order to use as the official basis for responding to the trace request or complaint. In the case where another person is authorized to make the trace request or complaint, such authorization must be performed in accordance with regulations of the law on authorization;

d2)10 Provide specific regulations on the time limit for a trace request or complaint provided that it is at least 60 days from the date on which the transaction for which the trace request or complaint is made proceeds;

d3)11 Implement measures for suspending the services upon the request of the customer who doubts fraud or loss related to the services, and bear all financial losses incurred by that customer due to the use of services after the suspension time;

d4)12 Process the trace request or complaint within 45 working days from the receipt of initial trace request or complaint by employing any of the methods of receipt prescribed in Point d of this Clause;

dd) 13 Process results of trace requests and complaints:

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- If it fails to determine reasons or which party at fault while the deadline for trace requests or complaints prescribed in Point d4 of this Clause expires, the provider shall, within succeeding 15 working days, agree with the customer about the remedial solution or reimburse the customer for damage until the final conclusion determining faults and responsibility of parties is made by the competent agency;

dd1)14 If the case shows any sign of crime, the provider shall notify the competent agency in accordance with the law on criminal procedures and send a report to the State Bank (via Department of Payment or the provincial branch of the State Bank); and notify the customer in writing of the progress of the trace request or complaint. Competent state agencies shall be responsible for processing results of trace request or complaint. If the competent authority notifies that the results do not show any sign of crime, the provider shall, within 15 working days from the conclusion of the competent authority, carry out an agreement with the customer about the methods of processing results of trace request or complaint;

dd2)15 In the case where the provider, customer and relevant parties fail 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;

e) Require users of digital wallet service to have payment accounts opened at banks before using the service; fully provide regular and irregular reports on payment transactions, balance, limit relating to the use of digital wallet service at the request of the customers.

2. Responsibilities towards banks:

a) Fully and promptly fulfill liabilities arisen from the transactions using the services according to agreements made between the providers of intermediary payment services and the banks and in accordance with the law;

b) Coordinate with the banks in fully and accurately checking, verifying and updating information about customers registering to use the services;

c) Coordinate with the banks and partners in checking and verifying daily transaction data.

3. The service provider must reach written agreements with banks and its partners in terms of cooperation of provision of the services, and require payment acceptance units to commit not to collect any other fees from customers paying through the intermediary payment services in any forms. In case a payment acceptance unit does not comply with the commitments, the service provider shall terminate the contracts and request the payment acceptance unit to compensate for damage to the customers or apply other appropriate measures under the terms of commitments between the parties.

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5. Fulfill other obligations as defined in contracts signed with the banks, customers and partners.

Article 14. Rights of banks

1. Select non-bank organizations to cooperate, and carry out technical testing on one or some intermediary payment services.

2. Sign contracts to use electronic payment infrastructure services and/ or cooperate in providing support services for the payment services with providers of intermediary payment services.

3. Request providers of intermediary payment services to provide necessary information concerning payment transactions through intermediary payment services.

4. Exercise other rights as defined in contracts and agreements on provision of services to providers of intermediary payment services.

Article 15. Responsibilities of banks

1. Cooperate with only non-bank organizations licensed by the State Bank to provide intermediary payment services.

2. Coordinate with providers of intermediary payment services in checking and verifying daily transaction data.

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4. Manage balances of payment guarantee accounts of the providers of support services for payment services in accordance with cooperation contracts signed with the providers of support services for payment services and as prescribed in this Circular.

5. Coordinate with providers of intermediary payment services in fully and accurately checking, verifying and updating information about customers registering to use the support services for payment services.

6. Coordinate with providers of intermediary payment services in providing guidance on measures, professional and technical procedures and security in making payments through intermediary payment services to payment acceptance units and customers using intermediary payment services. The bank shall assume responsibility to compensate customers and parties involved for damages due to the bank’s failure to comply with this provision.

7. Cooperate with providers of intermediary payment services in establishing procedures and formalities for resolving customers’ complaints relating to the payment transactions through intermediary payment services.

8. Fulfill other obligations as defined in contracts towards providers of intermediary payment services, payment acceptance units and customers.

Chapter V

REPORT, PROVISION OF INFORMATION AND ACTIONS AGAISNT VIOLATIONS

Article 16. Report and provision of information

1. Providers of intermediary payment services shall submit quarterly and annual reports to the State Bank (through the Department of Payment) in accordance with the contents required in Annex No. 02 enclosed with this Circular. Quarterly reports must be submitted before the 05^th day of the first month of the following quarter. Annual report must be submitted before the 15^th January of the following year.

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

b) Upon the occurrence of unusual developments in the operation which may cause adverse impacts on the operations of the providers of intermediary payment services and the banks or other organizations and individuals involved;

c) Upon the occurrence of events which interrupt the payment process through intermediary payment services.

3. Providers of intermediary payment services and banks are responsible for keeping the confidentiality of information relating to the payment transactions through intermediary payment services, the personal information of customers and payment accounts of customers. The said information is only provided in the following cases:

a) Upon the request of customers;

b) As prescribed by law.

Article 17. Actions against violations

Any organizations and/or individuals that violate the provisions of this Circular shall, depending on the nature and extent of the violations, face administrative penalties or criminal prosecution if the violations are serious, and make compensation for damage, if any, in accordance with the laws.

Chapter VI

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Article 18. Department of Payment

Department of Payment shall:

1. Take charge of receiving and coordinating with relevant units in verifying the applications for the License.

2. Consider and transmit applications to relevant Departments/ units affiliated to the State Bank for consideration within 15 working days as of the receipt of valid applications as prescribed in Clause 2 Article 16 of the Decree No. 101/2012/ND-CP.

3. Consolidate opinions given by relevant units, verify applications and report to the Governor of the State Bank for making decision to issue or refuse to issue the License.

4. Take charge of reporting to the Governor of the State Bank on handling issues relating to the issuance, revocation and re-issuance of License.

5. Take charge of receiving reports on the provision of intermediary payment services of providers of intermediary payment services and the banks.

6. Monitor and give advice to the Governor of the State Bank on the management and supervision of the provision of intermediary payment services by providers of intermediary payment services.

Article 19. Information Technology Department

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2. The Information Technology Department shall coordinate with the Department of Payment in inspecting the compliance with regulations on safety, security and risk management in electronic transactions of providers of intermediary payment services.

Article 20. Offices for banking supervision

The Offices for banking supervision shall inspect and supervise the implementation of this Circular by organizations and individuals involved.

Chapter VII

IMPLEMENTATION PROVISIONS 16, 17

Article 21. Effect

This Circular comes into force as of March 01, 2015.

Article 22. Transitional clause

Since the entry into force of this Circular, non-bank organizations that have been licensed by the State Bank to make pilot provision of intermediary payment services as prescribed in Article 2 herein must submit complete applications for the License as prescribed in Article 5 herein to the State Bank for consideration and issuance of License.

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Article 23. Implementation responsibility

Chief of Office, Director of the Department of Payment, heads of relevant affiliates of the State Bank of Vietnam, Directors of provincial branches of the State Bank, Chairpersons of the Management Boards (the Member Boards), General Directors (Directors) of providers of payment services and those of providers of intermediary payment services shall be responsible for implementing this Circular./.

CERTIFICATION OF CONSOLIDATED DOCUMENT

PP GOVERNOR
DEPUTY GOVERNOR




Nguyen Dong Tien

1 The Circular No. 20/2016/TT-NHNN on amendments to the Circular No. 36/2012/TT-NHNN dated December 28, 2012 on the installation, management, operation and security of automated teller machines and the Circular No. 39/2014/TT-NHNN dated December 11, 2014 on guidelines for intermediary payment services is promulgated pursuant to:

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The Law on credit institutions No. 47/2010/QH12 dated June 16, 2010;

The Law on Electronic transaction No. 51/2005/QH11 dated November 29, 2005;

The Government's Decree No. 156/2013/ND-CP on November 11, 2013 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

The Government's Decree No. 101/2012/ND-CP dated November 22, 2012 on non-cash payment;

The Government's Decree No. 35/2007/ND-CP dated March 08, 2007 on the electronic transaction in banking sector;

2 The Circular No. 30/2016/TT-NHNN on amendments to Circulars on provision of payment services and intermediary payment services is promulgated pursuant to:

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

The Law on credit institutions No. 47/2010/QH12 dated June 16, 2010;

The Law on negotiable instruments No. 49/2005/QH11 dated November 29, 2005;

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The Government's Decree No. 156/2013/ND-CP on November 11, 2013 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

3 This Clause is abrogated in accordance with regulations in Clause 3 Article 2 of the Circular No. 20/2016/TT-NHNN providing amendments to the Circular No. 36/2012/TT-NHNN dated December 28, 2012 on the installation, management, operation and security of automated teller machines and the Circular No. 39/2014/TT-NHNN dated December 11, 2014 on guidelines for intermediary payment services, and coming into force as of July 01, 2016.

4 This Clause is amended in accordance with regulations in Clause 1 Article 2 of the Circular No. 20/2016/TT-NHNN providing amendments to the Circular No. 36/2012/TT-NHNN dated December 28, 2012 on the installation, management, operation and security of automated teller machines and the Circular No. 39/2014/TT-NHNN dated December 11, 2014 on guidelines for intermediary payment services, and coming into force as of July 01, 2016.

5 This Clause is amended in accordance with regulations in Clause 2 Article 2 of the Circular No. 20/2016/TT-NHNN providing amendments to the Circular No. 36/2012/TT-NHNN dated December 28, 2012 on the installation, management, operation and security of automated teller machines and the Circular No. 39/2014/TT-NHNN dated December 11, 2014 on guidelines for intermediary payment services, and coming into force as of July 01, 2016.

6 This paragraph is amended in accordance with regulations in Clause 1 Article 3 of the Circular No. 30/2016/TT-NHNN providing amendments to Circulars on provision of payment services and intermediary payment services, and coming into force as of November 28, 2016.

7 This paragraph is amended in accordance with regulations in Clause 2 Article 3 of the Circular No. 30/2016/TT-NHNN providing amendments to Circulars on provision of payment services and intermediary payment services, and coming into force as of November 28, 2016.

8 This Point is amended in accordance with regulations in Clause 3 Article 3 of the Circular No. 30/2016/TT-NHNN providing amendments to Circulars on provision of payment services and intermediary payment services, and coming into force as of November 28, 2016.

9 This Point is amended in accordance with regulations in Clause 4 Article 3 of the Circular No. 30/2016/TT-NHNN providing amendments to Circulars on provision of payment services and intermediary payment services, and coming into force as of November 28, 2016.

10 This Point is amended in accordance with regulations in Clause 4 Article 3 of the Circular No. 30/2016/TT-NHNN providing amendments to Circulars on provision of payment services and intermediary payment services, and coming into force as of November 28, 2016.

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12 This Point is amended in accordance with regulations in Clause 4 Article 3 of the Circular No. 30/2016/TT-NHNN providing amendments to Circulars on provision of payment services and intermediary payment services, and coming into force as of November 28, 2016.

13 This Point is amended in accordance with regulations in Clause 5 Article 3 of the Circular No. 30/2016/TT-NHNN providing amendments to Circulars on provision of payment services and intermediary payment services, and coming into force as of November 28, 2016.

14 This Point is amended in accordance with regulations in Clause 6 Article 3 of the Circular No. 30/2016/TT-NHNN providing amendments to Circulars on provision of payment services and intermediary payment services, and coming into force as of November 28, 2016.

15 This Point is supplemented in accordance with regulatiosn in Clause 6 Article 3 of the Circular No. 30/2016/TT-NHNN providing amendments to Circulars on provision of payment services and intermediary payment services, and coming into force as of November 28, 2016.

16 Article 3 and Article 4 of the Circular No. 20/2016/TT-NHNN providing amendments to the Circular No. 36/2012/TT-NHNN dated December 28, 2012 on the installation, management, operation and security of automated teller machines and the Circular No. 39/2014/TT-NHNN dated December 11, 2014 on guidelines for intermediary payment services, and coming into force as of July 01, 2016, provide for as follows:

“Article 3. Effect

This Circular comes into force as of July 01, 2016.

Article 4. Implementation

Chief of Office, Head of the Department of Payment, heads of relevant affiliates of the State Bank of Vietnam, Directors of provincial branches of the State Bank, Director of the Office for Banking Supervision of Hanoi City, Director of the Office for Banking Supervision of Ho Chi Minh City, and General Directors (Directors) of providers of payment services and relevant entities shall be responsible for implementing this Circular./.”

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“Article 5. Effect

This Circular comes into force as of November 28, 2016.

Article 6. Transitional clause

With respect to contracts and/or agreements that are concluded before the entry into force of this Circular, providers of payment services and providers of intermediary payment services must notify their customers of new regulations on the receipt and resolution of trace requests or complaints under the forms specified in the signed contracts/ agreements, and on their websites; carry out the conclusion of new contracts/ agreements as requested by the customers. Modification or addition to the signed contracts must be performed in accordance with regulations of this Circular.

Article 7. Implementation

Chief of Office, Director of the Department of Payment, heads of relevant affiliates of the State Bank of Vietnam, Directors of provincial branches of the State Bank, Chairpersons of the Management Boards (the Member Boards), General Directors (Directors) of providers of payment services and those of providers of intermediary payment services, and relevant entities shall be responsible for implementing this Circular./.”