Starting from July 1, 2024, is a payment agent in Vietnam allowed to conduct transactions up to only 200 million VND per day?

Starting from July 1, 2024, is a payment agent in Vietnam allowed to conduct transactions up to only 200 million VND per day?

According to Article 5 of Circular 07/2024/TT-NHNN, the transaction limits are regulated as follows:

Transaction limits

1. The principal must have measures to manage the balance and transaction limits for another organization acting as an agent, including:

a) The transaction limit (including cash deposits and withdrawals) for individual customers is a maximum of 20 million VND per customer per day.

b) The agent is only allowed to conduct transactions for customers within the account balance for performing the agent's assigned tasks at the principal, as specified in Clause 4 of Article 7 of this Circular. Each payment agent point is allowed to conduct transactions of up to 200 million VND per day and a maximum of 5 billion VND per month.

2. The transaction limits for the agent are determined by commercial banks, cooperative banks, branches of foreign banks, people's credit funds, and microfinance institutions based on agreements between the principal and the agent.

Therefore, starting from July 1, 2024, each payment agent point is allowed to conduct transactions of up to 200 million VND per day and a maximum of 5 billion VND per month.

Starting from July 1, 2024, is a payment agent in Vietnam allowed to conduct transactions up to only 200 million VND per day? - image from internet

What is a payment agent point according to the law in Vietnam?

According to Article 3 of Circular 07/2024/TT-NHNN, the regulations regarding payment agent points are as follows:

Explanation of terms

In this Circular, the following terms are understood as follows:

1. Payment agent activities refer to the principal authorizing the payment agent to perform part of the process of opening payment accounts, issuing bank cards, and providing payment services to customers.

2. The principal of the payment agent includes commercial banks, cooperative banks, branches of foreign banks (referred to as the principal).

3. The payment agent includes commercial banks, cooperative banks, branches of foreign banks, people's credit funds, microfinance institutions, and other organizations (referred to as the agent).

4. Payment agent point refers to the location where the agent carries out payment agent activities.

Payment agent points of other organizations must be the business location of the agent or a branch of the agent.

5. Payment agent contract refers to the agreement between the principal and the agent regarding the performance of part of the process of opening payment accounts, issuing bank cards, and providing payment services to customers.

6. Payment agent fee refers to the amount of money that the principal pays to the agent for carrying out the assigned activities, as agreed upon by both parties and in accordance with the provisions of the law.

Therefore, the payment agent point is the location where the payment agent activities of the agent are carried out. The payment agent point of another organization must be the business location of the agent or a branch of the agent.

What are the rights and obligations of a payment agent in vietnam?

According to Article 10 of Circular 07/2024/TT-NHNN, the rights and obligations of the payment agent are as follows:

(1) Rights of the payment agent:

- Refuse requests from the principal that are not stipulated in the payment agent contract or are not in accordance with legal provisions.

- Request the principal to provide guidance, information, and necessary documents related to the content of payment agent activities.

- Receive payment agent fees and other legitimate benefits (if any) as stipulated in the payment agent contract.

- Other rights as stipulated in the payment agent contract, in accordance with the provisions of the law.

(2) Obligations of the payment agent:

- Carry out the assigned activities as stipulated in Article 4 of this Circular and the agreement in the payment agent contract.

- Timely and fully notify the principal of the implementation of payment agent activities as stipulated in the payment agent contract.

- Pay the principal any legitimate benefits (if any) arising from the implementation of payment agent activities as stipulated in the payment agent contract.

- Be subject to inspection and supervision by the principal regarding the implementation of payment agent activities.

- Comply with legal provisions on the protection of customer information, personal data, and be responsible for the accuracy of customer information identification, verification, and the implementation of measures to prevent money laundering, terrorist financing, and financing of weapons of mass destruction during the agency process.

- Be jointly liable for the quality of products and services provided to customers in case of errors by the payment agent; be responsible for reimbursing the principal for any compensation payments made by the principal and compensating customers on behalf of the payment agent for any losses or damages incurred by customers as a result of the payment agent's violation of the payment agent contract and any losses or damages incurred by customers due to the payment agent's disclosure of customer information or handling of errors or confusion during the operational process.

- During the agency process, the payment agent must monitor and manage the funds and assets of the principal (if any) in accordance with the provisions of the law and must not use the funds or assets of the principal for other business purposes.

- Receive and coordinate with the principal in handling customer inquiries and complaints; the time limit for handling inquiries and complaints and the handling of the results of inquiries and complaints shall be carried out in accordance with the provisions on the provision of non-cash payment services.

- Establish internal procedures to manage risks for each specific agency activity, including the process of receiving, preserving cash; have the necessary facilities, networks, and a team of personnel with qualifications, expertise, and technical skills to ensure the implementation of payment agent activities or as required by the principal.

- Notify the principal in case of suspending transactions with customers or ceasing to provide services for more than 4 hours during daily transactions, specifying the reasons and the plan to ensure uninterrupted payment agent activities.

- Store and ensure the integrity of data, records, documents, and provide them to the principal upon request.

- Fulfill other obligations as stipulated in the payment agent contract, in accordance with the provisions of the law.