The settlement of administrative violations against regulations on bank card operations in Vietnam

The settlement of administrative violations against regulations on bank card operations in Vietnam (Image from the Internet)

Pursuant to Article 28 of Decree 88/2019/ND-CP (effective from December 31, 2019) stipulating the form and level of fines for violations against regulations on bank card operations:

1. A warning shall be issued for committing one of the following violations:

a) failing to carry out inspection and maintenance of automated teller machines (ATMs);

b) failing to update the installation, relocation, retiming and shutdown of ATMs on the ATM management system and official website of the payment service provider.

2. A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for committing one of the following violations:

a) failing to give notification of the installation, relocation, retiming and shutdown of ATMs as prescribed by law;

b) failing to ensure the availability of ATM system as prescribed by law;

c) failing to maintain 24/7 operation of customer service department;

d) failing to monitor cash funds in ATMs or failing to ensure that ATMs will hold enough cash to serve customers’ cash withdrawals as prescribed; failing to comply with regulations on the cash limit per withdrawal at ATMs;

dd) failing to meet technical requirements regarding ATMs’ software and connection lines as prescribed by law.

3. A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed for failing to meet requirements on ATMs’ transaction logs as prescribed by law.

4. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for failing to adopt measures for ensuring safe operation and confidentiality of ATMs.

5. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:

a) committing violations against regulations on currency of payment with cards;

b) collecting card surcharges or practicing price discrimination against payments for goods/services with cards;

c) leasing, lending, buying or selling cards or card information or opening cards on behalf of other persons (except anonymous prepaid cards) if the violation involves from 01 to under 10 cards;

d) stealing or colluding with others to steal card information if the violation involves from 01 to under 10 cards.

6. A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:

a) leasing, lending, buying or selling cards or card information or opening cards on behalf of other persons (except anonymous prepaid cards) if the violation involves 10 cards or more but is not serious to cause the violating entity face criminal prosecution;

b) stealing or colluding with others to steal information on 10 cards or more if not liable to criminal prosecution;

c) issuing cards or processing card payment against law regulations;

d) failing to reject card payment in case the card is used for conducting card transactions prohibited by law, or the card is lost as informed by the cardholder, or an expired or locked card is used.

7. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:

a) using bank cards for conducting fraudulent transactions;

b) carrying out clearing for card transactions against law regulations;

c) transferring point-of-sale terminals or QR Codes to other users; accepting card payment without entering into a merchant service agreement; illegally using point-of-sale terminals or QR Codes;

d) Directly conducting, organizing or facilitating the conduct of forged or fraudulent card transactions or fictitious transactions at merchants (no occurrence of any sale of goods and provision of services).

8. Additional penalties:

The exhibits and instrumentalities used for committing any of the administrative violations prescribed in Point c Clause 5, Point a Clause 6, Points a, c and d Clause 7 of this Article shall be confiscated.

9. Remedial measures:

a) Enforced transfer of benefits illegally obtained from any of the administrative violations prescribed in Points c, dd Clause 5, Points a, b Clause 6 and Clause 7 of this Article to state budget;

b) Prohibition of conclusion of merchant service agreements with other acquirers until remedial measures against violation have been successfully implemented if the violation prescribed in Point b Clause 5 of this Article is committed.

Above is the content of the regulations regarding the issue you are wondering about.

Best regards!