Stricter rule copes with bank card fraud

01-Dec-2016 Intellasia | The Saigon Times | 6:00 AM Print This Post

Issuing banks must compensate for cardholders in five working days if they are found to be responsible for cash losses from cardholder accounts, according to a new central bank circular that went into force on November 28.

The State Bank of Vietnam (SBV) last month issued Circular 30/2016/TT-NHNN in the wake of multiple reports on the disappearance of money from bank accounts, and on card fraud. The circular sets time limits for providers of payment services and intermediaries to investigate, handle and compensate for victims.

Banks have so far dictated the time for dealing with customer complaints as the central bank’s Circular 19/2016/TT-NHNN allows the issuing bank and the cardholder to solve complaints based on their contract terms.

With Circular 30 in effect, cardholders can request issuing banks to investigate any transactions and can lodge complaints within 60 days or more from the date of the transactions being done.

In addition, the maximum time for banks to deal with such cases is no more than 45 working days from the date of receipt of the first request from the holder of the card having a BIN (bank identification number) granted by the SBV. For those with a BIN issued by international organisations, specific negotiations between card issuers and customers in their contracts should be referred to. A BIN is the initial four to six numbers on a card.

On the event cardholders are not responsible for their money losses and/or such cases are not identified as force majeure in the contracts, banks must compensate for their customers under the agreement and the current law, within a maximum of five working days from the notification of investigation and complaint settlement results.

If one of the parties involved are to blame (such as card switching or card accepting units), the party at fault must pay compensation to card issuers according to contract terms and the law.

In case the time for investigation and complaint resolution specified in the contract has run out without a cause figured out, card issuers within the next 15 working days must discuss with cardholders over a solution or temporarily make up for their losses before a final conclusion by competent authorities determines which party is responsible.

Circular 30 also provides other procedures, such as receipt of requests for investigation and complaints via a switchboard having a recording function and operating 24 hours, seven days a week, through transaction and business locations and in application of a form for investigation requests and complaints.


Category: Finance, Vietnam

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