Use and authorized use of payment accounts in Vietnam as of July 1, 2024

Use and authorized use of payment accounts in Vietnam as of July 1, 2024 (Internet image) 

Regarding this matter, LawNet would like to answer as follows: 

On May 15, 2024, the Government issued Decree 52/2024/ND-CP on cashless payments, which stipulates the procedures for opening and use of payment accounts at the State Bank of Vietnam as of July 1, 2024.

1. Use and authorized use of payment accounts in Vietnam as of July 1, 2024

Use and authorized use of payment accounts are stipulated in Article 10 of Decree 52/2024/ND-CP as follows:

- Owners of payment accounts may use their payment accounts to deposit or withdraw cash and request payment service providers to implement valid payment transactions. Owners of payment accounts may request payment service providers to provide information on transactions and the balances of their accounts under agreements with payment service providers where they open such accounts.

- Owners of payment accounts may authorize the use of their accounts. The authorization shall be made in writing and conformable with the law on authorization.

- Owners of payment accounts shall adequately and truthfully provide information and comply with regulations on the opening, use, and authorization in the use of payment accounts of payment service providers and ensure the sufficient amount (available balance) on their payment accounts for the implementation of payment orders, excluding cases where there are agreements on overdraft loans with payment service providers.

- Payment service providers shall adequately and promptly carry out valid payment orders of owners of payment accounts.

- Payment service providers may refuse to carry out the payment orders of owners of payment accounts in cases where such orders are invalid, or there are legal grounds to determine that the owners have committed prohibited acts prescribed in Article 8 of this Decree or the payment accounts do not have the sufficient amount, excluding cases where there are other agreements. In case of refusing to carry out payment orders of owners of payment accounts, payment service providers shall notify the owners of the reasons.

2. Cases of payment account freeze in Vietnam as of July 1, 2024

- Payment accounts shall have their balances partly or wholly frozen in the following cases:

(1) When there are prior agreements between owners of payment accounts and payment service providers or requests from owners of payment accounts;

(2) When there are decisions or written requests from competent authorities as prescribed by the law;

(3) When payment service providers detect mistakes or errors when writing “Yes” into payment accounts of clients or carry out refund orders of money transfer service providers due to mistakes and errors compared to payment orders of transferring parties after writing “Yes” into payment accounts of clients. The frozen amount on a payment account shall not exceed the mistaken or erroneous amount;

(4) When there are requests for the freeze from one of the owners of a general payment account, excluding cases where there are prior written agreements between the payment service provider and the owners of such a general payment account.

- The termination of payment account freeze shall be carried out when:

+ There are written agreements between owners of payment accounts and payment service providers or requests from owners of payment accounts;

+ There are decisions to terminate the freeze of competent authorities as prescribed by the law;

+ The mistakes and errors in money transfer payment are processed according to Point c Clause 1 of Article 11 of Decree 52/2024/ND-CP;

+ There are requests for the termination of the freeze from all of the owners of a general payment account or prior written agreements between the payment service provider and owners of such a general payment account.

- Payment service providers, owners of payment accounts, and competent authorities, when freezing either by themselves or at the requests of others contrary to the law that causes damage to owners of payment accounts, shall provide compensations as prescribed by the law. 

(Article 11 of Decree 52/2024/ND-CP)

More details can be found in Decree 52/2024/ND-CP, which comes into force from July 1, 2024.

Nguyen Ngoc Que Anh

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