What is a Payment Guarantee Account? Regulations on Ensuring Safety in Providing Payment Intermediary Services Effective from July 17, 2024
What is a payment security account under the law in Vietnam?
In Article 3 of Circular 40/2024/TT-NHNN regarding the interpretation of terms, it is stated:
Interpretation of Terms
In this Circular, the following terms are understood as follows:
1. A payment security account is a payment account in Vietnamese Dong (hereinafter referred to as a Vietnamese Dong account) of an e-wallet service provider, a collection and payment support service provider opened at a cooperative bank to ensure the provision of e-wallet services and collection and payment support services.
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According to the above regulation, a payment security account is a payment account in Vietnamese Dong (hereinafter referred to as a Vietnamese Dong account) of an e-wallet service provider, a collection and payment support service provider opened at a cooperative bank to ensure the provision of e-wallet services and collection and payment support services.
What is a payment security account under the law in Vietnam? (Internet image)
What is a payment security accounts affiliated to e-wallets used for in Vietnam?
Clause 3, Article 27 of Circular 40/2024/TT-NHNN regulates that a payment security accounts affiliated to e-wallets is used for the following purposes:
- Payment transfer to the Vietnamese Dong account of the e-wallet holder at a linked bank (for the use of e-wallets as stipulated in point a, clause 2, Article 25 of Circular 40/2024/TT-NHNN)
- Payment transfer to the Vietnamese Dong account at a bank or a foreign bank branch (for the use of e-wallets as stipulated in point b, clause 2, Article 25 of Circular 40/2024/TT-NHNN)
- Payment transfer to the payment security account for its own e-wallet service opened by the e-wallet service provider at the cooperative bank
- Payment transfer to the payment security account for the e-wallet service of a different e-wallet service provider
- Payment to the payment account of the payment acceptance unit, public service provider equivalent to the transaction using the e-wallet for payment as stipulated in point e, clause 2, Article 25 of Circular 40/2024/TT-NHNN
- Refund money to the e-wallet holder in case of e-wallet usage as stipulated in clause 4, Article 25 of Circular 40/2024/TT-NHNN
- The e-wallet service provider is allowed to withdraw fees deducted by the parties from the payment security account for the e-wallet service in case the parties involved directly deduct service fees on the e-wallet.
The e-wallet service provider must agree with the cooperative bank on the proof, ensuring the amount withdrawn from the payment security account is the fee amount deducted by the parties in the e-wallet transaction.
Regulations on safety assurance in payment intermediary services in Vietnam from July 17, 2024
Article 9 of Circular 40/2024/TT-NHNN regulates safety assurance in payment intermediary services in Vietnam as follows:
(1) Before providing services to customers, the payment intermediary service provider must issue internal procedures related to payment intermediary services, including at least the following processes:
- Technical business process of the payment intermediary service, including at minimum: service name; service provision scope; customer target; usage conditions; diagram and explanation of operation steps; money flow process from transaction initiation to settlement of obligations between related parties for e-wallet services and collection, payment support services.
- Internal inspection and control process, including: purpose; requirements; implementation order; responsibilities of the related department.
- Risk management, safety, and security assurance process, including:
+ Contents ensuring compliance with risk management regulations, safety, and security in line with the regulations of the State Bank in electronic banking activities;
+ Contents ensuring compliance with the establishment, use, preservation, and storage of electronic documents following the provisions of the law on electronic transactions in banking activities;
+ Evaluation of possible risks and corresponding risk management measures in providing payment intermediary services;
+ Establishment of internal processes for policies and specific risk handling measures;
- General principles and internal regulations on anti-money laundering, counter-terrorist financing, and counter-financing of the proliferation of weapons of mass destruction including:
+ General principles on anti-money laundering, counter-terrorist financing, counter-financing of the proliferation of weapons of mass destruction;
+ Internal regulations on anti-money laundering, counter-terrorist financing, and counter-financing of the proliferation of weapons of mass destruction in compliance with the law on anti-money laundering, counter-terrorist financing, and counter-financing of the proliferation of weapons of mass destruction;
- Procedures and processes for resolving inquiries, complaints, and disputes complying with the State Bank’s regulations on providing non-cash payment services and clearly stating the following contents:
+ Regulations on resolving or responding to customer complaints and inquiries, indicating: reception channels, reception department, complaint guidance steps, internal handling steps within the intermediary payment service provider, and steps involving cooperation with related units;
+ Processes, procedures, specific responsibilities of each involved party, implementation time for each step, and the result returned to the complainant;
- For international financial switch services: internal regulations on selecting international payment systems to connect for international financial switch transactions; internal regulations on business processes with risk management measures for international financial switch services.
(2) The payment intermediary service provider must regularly review and update the internal procedures mentioned in clause 1 of this Article, ensuring they match practical service provision conditions and comply with current relevant laws.
(3) The payment intermediary service provider must comply with technical requirements regarding the safety and security of equipment for banking card payment; information system safety requirements in banking activities; safety and security requirements for providing online services in the banking industry; implementation of safety and security solutions for online payment and banking card payment.
(4) Before offering services to customers, an organization licensed by the State Bank must publicly disclose on its official website the following: payment intermediary services licensed by the State Bank; forms of providing the organization's intermediary payment services; names/brands of the organization’s intermediary payment services.
(5) The payment intermediary service provider must ensure clear and separate accounting, tracking of revenue/expenditure related to payment intermediary service provision from other business activities (if any); ensure separate accounting, tracking of each licensed payment intermediary service granted by the State Bank.
(6) In cases where the payment intermediary service provider directly contracts or agrees with the payment acceptance unit (without involving the cooperative bank), the provider must fulfill responsibilities similar to those of a payment service provider towards the payment acceptance unit as per the State Bank’s regulations on providing non-cash payment services.
(7) If the payment intermediary service provider collaborates with another organization that offers products or services (hereinafter referred to as the partner), there must be a contract or agreement with the partner, including at least the following:
- The partner's cooperation with the payment intermediary service provider;
- Delineation of responsibilities between the payment intermediary service provider and the partner in providing products, services, and managing arising risks during the service or product use;
- A department/unit designated to handle client difficulties and issues during the use of services, products;
- Compliance with business investment conditions for each product, service (for products and services in conditional business sectors);
- Risk warnings for customers (if any);
- Notice and public disclosure to customers of information before using products and services as regulated in points a, b, c, d, e, clause 7, Article 9 of Circular 40/2024/TT-NHNN.
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