THE GOVERNOR OF THE STATE BANK

Pursuant to the 1997 Law on the State Bank of Vietnam and the 2003 Law Amending and Supplementing a Number of Articles of the Law on the State Bank of Vietnam;

Pursuant to the 1997 Law on Credit Institutions and the 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;

Pursuant to the 2005 Law on E-Transactions;

Pursuant to the Government's Decree No. 52/2003/ND-CP of May 19, 2003, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to the Government's Decree No. 64/2001/ND-CP of September 20, 2001, on payment activities through payment service-providing organizations;

At the proposal of the director of the Payment Department,

DECIDES:

Article 1.- To promulgate together with this Decision the Regulation on issuance, payment and use of bank cards and provision of bank card operation support services.

Article 2.- This Decision takes effect 15 days after its publication in "CONG BAO" and replaces the State Bank Governor's Decision No. 371/1999/QD-NHNN1 of October 19, 1999, promulgating the Regulation on issuance, use and payment of bank cards.

Article 3.- The director of the State Bank's Office, the director of the Payment Department, heads of related units under the State Bank, directors of the State Bank's branches in provinces and centrally run cities; chairmen of Management Boards and general directors (directors) of commercial banks, development banks, investment banks, policy banks, cooperative banks and banks of other types, non-bank credit institutions, cooperative credit institutions, other organizations other than credit institutions, and concerned organizations and individuals shall implement this Decision.

For the State Bank Governor
Deputy Governor
NGUYEN DONG TIEN

(Issued together with the State Bank Governor's Decision No. 20/2007/QD-NHNN of May 15, 2007)

Article 1.- Scope of regulation and subjects of application

1. This Regulation regulates the issuance, payment and use of bank cards and the provision of bank card operation support services in the Socialist Republic of Vietnam.

2. This Regulation applies to organizations and individuals involved in the issuance, payment and use of bank cards and the provision of bank card operation support services in the Socialist Republic of Vietnam.

Article 2.- Interpretation of terms

In this Regulation, the terms below are construed as follows:

1. "Bank card" (hereinafter referred to as "card" for short) is an instrument issued by a card-issuing organization for conducting card transactions under the conditions and terms agreed upon by the involved parties.

Based on the scope of territory in which cards are used, cards are classified into domestic cards and international cards.

Based on financial sources to ensure the use of cards, cards are classified into debit cards, credit cards and prepaid cards.

Cards regulated in this Regulation do not cover types of cards issued by goods suppliers and service providers for use in the payment for goods and services for the issuing organizations themselves.

2. "Domestic card" is a card issued by a Vietnam-based issuing organization for transactions within the territory of the Socialist Republic of Vietnam.

3. "International card" is a card issued by a Vietnam-based issuing organization for transactions within and outside the territory of the Socialist Republic of Vietnam; or issued by an international organization for transactions within the territory of the Socialist Republic of Vietnam.

4. "Debit card" is a card permitting its holder to conduct card transactions within the amount of money available on the payment deposit account of the cardholder opened at a payment service-providing organization permitted to accept non-term deposits.

5. "Credit card" is a card permitting its holder to conduct card transactions within the credit limit granted under the agreement with the card-issuing organization.

6. "Prepaid card" is a card permitting its holder to conduct card transactions within the value limit loaded on the card corresponding to the amount of money already prepaid by its holder to the card-issuing organization.

Prepaid cards include bearer prepaid card and non-bearer prepaid card (anonymous prepaid cards).

7. "Card transaction" means the use of cards for transferring, loading and withdrawing cash, paying for goods and services and using other services provided by the card-issuing organization and card payment organization.

8. "Loading money" means the loading of a money value on a card by paying cash or check or transfer of funds via debit or credit cards or deducting money from the payment deposit accounts through the card-issuing organization, card payment organization, card issuing agent or card-accepting unit.

9. "Cardholder" is an individual or organization that is issued by a card-issuing organization a card for use, including principal cardholder and supplementary cardholder.

10. "Principal cardholder" is an individual or organization that signs in his/her/its name a card use agreement with the card-issuing organization, and is obliged to comply with the agreement.

11. "Supplementary cardholder" is an individual who is permitted by the principal cardholder to use the card in line with the agreement between the principal cardholder and the card-issuing organization. A supplementary cardholder is responsible for the use of the card to the principal cardholder.

12. "Card-issuing organization" is a bank, non-bank credit institution, cooperative credit institution or an organization other than credit institution that is licensed to issue cards under Article 9 of this Regulation.

13. "Card payment organization" is a bank or another organization other than bank licensed to provide card payment services under Article 14 of this Regulation.

14. "Card switching organization" is an intermediary organization providing the service of connecting the card transaction-processing systems of card-issuing organizations, card payment organizations and card-accepting units under written agreements between the involved parties.

15. "Card transaction clearing service-providing organization" is an intermediary organization conducting the exchange of electronic or paper data and clearing financial obligations arising from card transactions for card-issuing organizations, card payment organizations and card-accepting units under written agreements between the involved parties.

Card switching organizations providing the services specified in this Clause are also regarded card transaction clearing service-providing organizations.

16. "Card-accepting unit" is an organization or individual accepting the card payment for goods and services and providing the services of cash loading and withdrawal with cards.

17. "Card operation support service" is a service provided by a third-party specialized organization or individual to card-issuing organizations, card payment organizations, card transaction clearing service-providing organizations and card switching organizations under service contracts agreed upon between the involved parties. Card operation support services include card distribution agency, lease of ATM/POS/CD, loading of money on ATM/CD, maintenance of ATM/POS/CD, provision of technical solutions related to card operations and other services not in violation of Vietnamese law.

18. "Automated Teller Machine" (ATM) is a device which can be used by cardholders to make transfers of funds, load and withdraw cash, make bank transfers and to inquire about card transactions or use other services.

19. "Card dispenser" (CD) is a device which can be used by cardholders to withdraw cash.

20. "Personal identification number" (PIN) is a secret code number of an individual granted by a card-issuing organization to a cardholder for use in a number of card transactions to attest to the cardholder. The cardholder is responsible for keeping this code number secret. In electronic transactions, PIN is regarded as the signature of the cardholder.

21. "Bank identification number" (BIN) is a sole sequence of numerals prescribed by the State Bank on a uniform principle for the purpose of identifying the card-issuing bank and its products and services.

22. "Payment deposit account" is an account opened by an individual or organization at a payment service-providing organization for the purpose of transferring funds, keeping money or carrying out payment transactions through this organization by various instruments of payment.

23. "Legally valid data message" is a piece of information created, sent, received and stored in an electronic device in accordance with the provisions of the Law on E-Transactions on the legal validity of data messages.

24. "Card payment contract" is a contract between a card-issuing organization, card payment organization, card-accepting unit or card transaction clearing service-providing organization and other involved parties agreeing on the card payment conditions and terms.

25. "Card use contract" is a contract between a card-issuing organization and the cardholder agreeing on the card use conditions and terms.

Article 3.- Provisions on card limits

1. Card-issuing organizations shall prescribe credit limits, payment limits, cash withdrawal limits, overdraft limits and other limits in the use of cards by cardholders in accordance with current regulations on credit, foreign exchange management and other provisions of law.

2. For non-bearer prepaid cards, the balance on a card must not exceed the limit prescribed by the State Bank of Vietnam, they must not be loaded with additional money and must only be used for payment of goods and services.

This provision does not apply to bearer prepaid cards.

Article 4.- Provisions on grant of credit through cards

1. The grant of credit through cards shall be effected in accordance with current regulations of the State Bank on the grant of credit.

2. The amount of money overdrawn and the money borrowed on credit by a customer must be within the lending limits applicable to customers in accordance with current provisions of law.

The balance of debts overdrawn through cards and the balance of credit debts through cards shall be included in the total lending debt balance of the card-issuing organization.

3. The debt payment time limit, the minimum debt payment level, the payment obligation and other obligations related to the grant of credit shall be agreed upon between the card-issuing organization and the cardholder not in violation of law.

Article 5.- Card currency

1. On Vietnamese territory, card transactions must be conducted in Vietnam dong or converted into Vietnam dong. In case of conversion into Vietnam dong, the exchange rate between Vietnam dong and the foreign currency concerned shall be agreed upon by the involved parties.

2. Cash withdrawals at ATMs, CDs or card-accepting units on Vietnamese territory shall be effected in Vietnam dong.

3. Outside Vietnamese territory, international card transactions may be conducted in Vietnam dong, freely convertible foreign currencies and other currencies accepted by card payment organizations as payment currencies in current transactions in accordance with the provisions of law on foreign exchange management.

Card-issuing organizations are obliged to manage the use limits of cards which they issue in accordance with current provisions of law on foreign exchange management.

Article 6.- Card service charges

1. Cardholders shall pay charges for the use of card services. Types and rates of charges shall be prescribed by card-issuing organizations depending on the types of cards and services used by cardholders not in violation of law.

2. Other types and rates of charges related to card services payable or receivable by card-issuing organizations, card payment organizations, card-accepting units, card transaction clearing service-providing organizations and card switching organizations shall be agreed by the involved parties not in violation of law.

3. Card-issuing organizations and card payment organizations shall publicize types and rates of charges to charge payers before the latter pay service charges.

4. Card-accepting units may not charge in any form cardholders for the card acceptance in payment transactions for goods and services conducted by cardholders at card-accepting units, except for transactions related to the cash loading and withdrawal by cardholders.

Article 7.- Deduction for setting up risk reserves

Card-issuing organizations and card payment organizations shall make deductions for setting up risk reserves to offset risks arising from card issuance and payment operations. The levels of reserves, methods of making deductions and setting up reserves and use of reserves are in accordance with regulations of the State Bank of Vietnam and other relevant provisions of Vietnamese law.

Article 8.- Applicable laws

1. The issuance, use and payment of cards and the provision of card operation support services shall be conducted in accordance with this Regulation and other relevant provisions of Vietnamese law.

2. For cases related to the issuance, use and payment of international cards, organizations and individuals may apply the rules of international card organizations which these organizations and individuals participate in, which are not contrary to other relevant provisions of Vietnamese law.

3. When a treaty to which the Socialist Republic of Vietnam is a contracting party contains provisions different from those of this Regulation, the provisions of the treaty prevail.

4. For card operations not yet governed by Vietnamese law, the involved parties may reach agreement to apply international practice provided that the application of such practice is not contrary to the basic principles of Vietnamese law.

Article 9.- Conditions for issuance of cards

1. The following organizations may issue cards:

a/ Credit institutions that are banks meeting all conditions specified in Clause 2 of this Article;

b/ Non-bank credit institutions, cooperative credit institutions, other organizations other than credit institutions licensed to conduct banking operations, including issuance of cards, which meet all conditions specified in Clause 2 of this Article.

2. A card-issuing organization must meet all the following conditions:

2.1. For the issuance of domestic cards:

a/ Card issuance operations are in line with the scope, conditions and objectives of operation of the card-issuing organization;

b/ The card-issuing organization observes all safety ratios in its operation as prescribed by law;

c/ It adopts regulations and processes for card issuance operations;

d/ It ensures the electronic banking risk management principles for card issuance operations;

e/ It observes the State Bank's current regulations on internal supervision and control in its card issuance operations;

f/ It registers the types of cards and their functions with the State Bank before issuing them;

g/ It fully and accurately reports and provides relevant information and documents to prove the conditions assuring the performance of card issuance operations; fully and accurately reports statistical data to the State Bank for management and supervision purposes;

h/ It complies with other provisions of this Regulation.

2.2. For the issuance of international cards:

In addition to the conditions specified in Clause 2 of this Article, an international card-issuing organization must meet all conditions for foreign exchange activities as required by the State Bank.

3. The State Bank shall assess the compliance with the provisions of Clause 2 of this Article by card-issuing organizations throughout the course of card issuance operation. A card-issuing organization failing to comply with the above provisions shall take necessary remedies at the request of the State Bank. If unable to remedy the failure, it shall be forced to cease card issuance operations.

Article 10.- Grant of code numbers of card-issuing organizations

Card-issuing organizations shall use code numbers of card-issuing organizations under the State Bank's regulations on the grant, use and management of code numbers of card-issuing organizations.

Article 11.- Conditions for use of cards

1. The use of a card must be expressed in a card use contract between the cardholder and the card-issuing organization. A cardholder must meet the following conditions:

a/ For a principal cardholder that is an individual:

- Having full civil act capacity as prescribed by law;

- Having a payment deposit account opened at the card-issuing organization, if using a debit card;

- Meeting other conditions required by the card-issuing organization.

b/ For a principal cardholder that is an institution, it must meet the following conditions:

- Being a legal person;

- Meeting other conditions required by the card-issuing organization.

c/ For a supplementary cardholder, he/she must meet all the following conditions:

- Having full civil act capacity as prescribed by law; or having civil act capacity and having reached between full fifteen years and under eighteen years of age, and obtaining his/her at-law representative's approval of the use of the card;

- Obtaining the principal cardholders' commitment to fulfill all obligations arising from the use of the card;

- Meeting other conditions required by the card-issuing organization.

The provisions of Points a, b and c of this Clause are not applicable to non-bearer prepaid cards.

2. For credit or debit cards bearing an overdraft limit, there must be additionally written specific regulations on the grant of credit between the cardholder and the card-issuing organization.

Article 12.- Scope of card use

1. Domestic cards are used to pay for the purchase of goods or services at card-accepting units, to transfer funds, load and withdraw cash and use other services as agreed upon with card-issuing organizations within the Vietnamese territory.

2. International cards are used to pay for the purchase of goods or services at card-accepting units, to transfer funds, load and withdraw cash and use other services in Vietnam dong within the Vietnamese territory or in Vietnam dong, freely convertible currencies and other currencies accepted by card payment organizations as payment currencies outside the Vietnamese territory.

Article 13.- Assurance of safety in the use of cards

1. Cardholders shall preserve their cards and keep secret their PINs. If losing their cards, cardholders shall promptly inform the card-issuing organization thereof and officially confirm the loss in writing or a legally valid data message to the card-issuing organization. The time limit for the card-issuing organization to confirm the processing of the information on the loss received from the cardholder shall be agreed upon in a document between the involved parties but must not exceed ten working days from the date of receipt of the information from the cardholder.

2. If the card is illegally used before the card-issuing organization confirms in writing or a legally valid data message the processing of the information received from the cardholder, the cardholder is wholly liable for any loss and shall compensate for any loss caused by the illegal use of his/her card.

3. If the card is illegally used after the card-issuing organization confirms in writing or a legally valid data message the processing of the information received from the cardholder, the card-issuing organization is wholly liable for any loss and shall compensate for any loss caused by the illegal use of the card.

4. Card-issuing organizations are responsible for issuing regulations on and instructing cardholders how to use, preserve and manage their PINs.

Article 14.- Conditions for providing card payment services

1. The following organizations may provide card payment services:

a/ Credit institutions that are banks meeting all the conditions specified in Clause 2 of this Article;

b/ Other organizations other than banks but licensed to provide payment services, including card payment services, and meeting all the conditions specified in Clause 2 of this Article.

2. A card payment organization must fully meet the following conditions:

a/ The provision of card payment services is in line with the operation scope and objectives of the organization;

b/ The card payment organization observes all safety ratios in its operation as prescribed by law;

c/ It ensures the electronic banking risk management principles in the provision of card payment services;

d/ It observes the State Bank's current regulations on internal supervision and control of the provision of card payment services;

e/ It fully and accurately reports and provides relevant information and documents to prove the conditions assuring the provision of card payment services; fully and accurately reports statistical data to the State Bank for management and supervision purposes;

f/ It complies with other provisions of this Regulation.

3. The State Bank shall assess the compliance with the provisions of Clause 2 of this Article by card payment organizations throughout the course of providing card payment services. A card payment organization failing to comply with the above provisions shall take remedies at the request of the State Bank. If unable to remedy the failure, it shall be forced to cease the provision of card payment services.

Article 15.- Organization of card payment

1. Card payment shall be organized under card payment contracts.

2. Clearing for card transactions shall be made according to the agreement on the organization of payment between the involved parties.

3. For international cards, the organization of card payment shall be made according to the agreement with the international card organization which the card payment organization participates in, which is not in violation of the laws of the Socialist Republic of Vietnam.

Article 16.- Rejection of card payment

1. A card shall be rejected in the following cases:

a/ The card is fake or related to a fake transaction;

b/ The card has been lost as notified by the cardholder;

c/ The balance on the payment deposit account, the credit limit or the overdraft limit (if any) is insufficient for the payment;

d/ The cardholder fails to fully pay all overdrawn amounts, credits, interests or charges according to regulations of the card-issuing organization;

e/ The cardholder breaches regulations of the State Bank of Vietnam, regulations of the card-issuing organization and the card payment organization or agreements between the cardholder and the card-issuing organization.

2. The card-issuing organization shall notify in writing or a legally valid data message the cases specified in Clause 1 of this Article to the card payment organization; and the card payment organization shall notify it to the card-accepting unit.

3. A notification on the rejection of a card takes effect at the time the involved party in card payment activities receives the notification in the form of a document or legally valid data messages. After the involved party receives the notification, if it still fails to reject the card and let it be illegally used, it shall bear all the loss, unless otherwise agreed upon by the involved parties.

Article 17.- Clearing for card transactions

The provision of the service of clearing for card transactions between card-issuing organizations and card payment organizations is subject to permission of the State Bank.

When providing the service of clearing for card transactions between card-issuing organizations and card payment organizations, the organization providing the service of clearing for card transactions must ensure the conditions and technical standards promulgated by the State Bank.

Article 18.- Settlement of results of clearing for card transactions

The settlement of financial obligations arising from the clearing between members of the card transaction clearing system shall be conducted at the State Bank or a payment service-providing organization accepted by the State Bank.

Article 19.- Rights of card-issuing organizations

A card-issuing organization has the rights:

1. To request provision of information and collect information:

a/ To request cardholders to provide fully necessary information and documents so as to clarify the card use conditions of customers when they apply for the issuance of cards and in the course of card use;

b/ To request card payment organizations to provide necessary information relating to card transactions made by cardholders at card payment organizations and related card-accepting units;

c/ To collect information from other organizations on cardholders or customers when they apply for the issuance of cards.

2. To issue regulations on card use:

a/ To refuse to issue a card to a customer who fails to fully meet the card use conditions and terms; to decide to revoke the card of a cardholder who fails to fully meet the terms and conditions stipulated in the card use contract in the course of card use;

b/ To increase or reduce the overdraft or credit limits; to decide to withdraw the amounts of money lent to cardholders; to stipulate forms of assurance of safety in the use of cards; to determine interests and interest rates on loans provided to cardholders in accordance with current provisions of law.

3. To select partners:

a/ To select organizations as partners to sign joint-venture or affiliation contracts on the issuance of cards and organization of card payment on the basis of ensuring safety and efficiency;

b/ To select card operation support service providers to sign on card operation support service contracts on the basis of complying with the risk management principles.

4. Other rights under card payment services, card use contracts and card operation support service contracts in accordance with law.

Article 20.- Obligations of card-issuing organizations

A card-issuing organization has the following obligations:

1. With respect to cardholders:

a/ To settle or respond to claims or inquiries of cardholders under the provisions of Clause 5, Article 21 of this Regulation;

b/ To refund the unused amounts of money already loaded on prepaid cards at the request of cardholders in the following cases:

- The card is unusable due to technical errors;

- The balance on the bearer prepaid card is not used yet and the cardholder requests refund of the money.

c/ To fully disclose to cardholders information on payable charges before they use cards (including the charge for card transactions in another system).

2. With respect to involved parties:

To fully and promptly pay for obligations arising from card transactions as agreed upon between the involved parties.

3. For the assurance of safety in card operations:

a/ To take measures to ensure safety and prevent risks for card transactions in accordance with the electronic banking risk management principles; to keep confidential information relating to card operations; to ensure the uninterrupted and safe operation of the system of infrastructure and software used in the administration of card issuance and payment activities;

b/ To instruct cardholders how to take measures to ensure safety for card transactions;

c/ To request card payment organizations and card operation support service providers to take necessary measures to ensure safety for card operations; to manage risks related to card operation support service providers in accordance with current provisions of law on the electronic banking risk management principles.

4. Other obligations under card payment contracts, card use contracts and card operation support service contracts.

Article 21.- Rights of cardholders

A cardholder has the following rights:

1. To use cards to pay for the purchase of goods and services at the same price as cash payment without having to pay any additional amount or charges to card-accepting units;

2. To reach agreement with the card-issuing organization on the overdraft limit, credit limit and other agreements in accordance with current law;

3. To be provided by the card-issuing organization on a regular or irregular basis information on card transactions, balances and limits related to the use of his/her card according to regulations of this organization;

4. To request refund of the unused amount of money already loaded on his/her prepaid card in the cases specified at Point b, Clause 1, Article 20 of this Regulation;

5. To file claims or requests with the card-issuing organization to conduct verification in the following cases:

a/ There are errors or doubts about errors in card transactions notified by the card-issuing organization as agreed upon; if the cardholder files a claim or verification request with the card-issuing organization, the latter shall notify this request to the card payment organization;

b/ A card-accepting unit increases the prices of goods or services or differentiate prices between card payment and cash payment; a card-accepting unit requests the cardholder to pay additional charges for card transactions conducted for the purchase of goods or services at the unit;

c/ Other breaches of the card use contract committed by the card-issuing organization.

The cardholder shall send his/her claims or verification requests in writing or legally valid data messages to the card-issuing organization within seven working days from the date of receipt of the notification (for the case specified at Point a of this Clause) or from the date the cardholder's rights and interests are infringed upon (for cases specified at Points b and c of this Clause).

6. Other rights under the card use contract.

Article 22.- Obligations of cardholders

A cardholder has the following obligations:

1. To provide fully and accurately all necessary information at the request of the card-issuing organization when applying for the issuance of a card and in the course of using the card;

2. To pay to the card-issuing organization fully and on time charges, loans and interests arising from the use of the card as agreed upon in the card use contract;

3. The principal cardholder and supplementary cardholder(s) shall bear joint responsibilities and each shall bear his/her personal responsibility for complying with the card use terms and conditions in the card use contract between the cardholder and the card-issuing organization. The principal cardholder is responsible to the card-issuing organization for the use of the card by the supplementary cardholder(s), for paying to the card-issuing organization all card transactions with invoices signed by the principal cardholder or supplementary cardholder and with the use of the PIN. When the principal cardholder dies, is missing or loses his/her act capacity, the payment to the card-issuing organization and the enjoyment of the balance on his/her payment deposit account or of the remaining amount of the bearer prepaid card shall be handled in accordance with law.

4. Other obligations under the card use contract.

Article 23.- Rights of card payment organizations

A card payment organization has the following rights:

1. To receive full and prompt payments from the card-issuing organization for card transactions conducted in accordance with the agreement between the two parties;

2. To be refunded by the card-accepting unit the money already paid for card transactions conducted in breach of the card payment contract;

3. To be provided with necessary information relating to card transactions of cardholders at card-accepting units;

4. To enjoy card service charges as agreed upon between the parties;

5. To seize cards under the provisions of Article 31 of this Regulation;

5. Other rights under the card payment contract and card operation support service contract.

Article 24.- Obligations of card payment organizations

1. A card payment organization has the following obligations:

a/ To request card-accepting units not to impose different prices in card payments. If a card-accepting unit fails to comply with this requirement, to terminate the contract and request the card-accepting unit to pay compensations for damage or apply other appropriate measures under the terms committed between the parties.

b/ To give guidance on measures, operational processes and confidentiality in the card payment for card-accepting units. To take responsibility for damage caused by its non-compliance with this provision;

c/ To manage risks with respect to card operation support service providers in accordance with current provisions of law on the electronic banking risk management principles;

d/ To comply with verification requests filed by the card-issuing organization within five working days from the date of receipt of these requests. In case of non-compliance or late compliance with such a request, to bear all expenses arising from the card transaction subject to such request from the date of expiration of this time limit;

e/ Other obligations under the card payment contract, the card use contract and the card operation support service contract.

2. Card payment organizations may not sign card payment contracts with any card-accepting unit that has violated the provisions of Point a, Clause 1 of this Article within one year afterward; if the card-accepting unit commits the violation again, this time limit may be between three and five years; a card payment organization that fails to comply with this provision despite knowing the violation of the card-accepting unit shall be also regarded as having violated the condition on the provision of card payment services specified in Article 14 of this Regulation.

Article 25.- Rights of card-accepting units

A card-accepting unit has the following rights:

1. To receive full and prompt payments from the card-issuing organization and card payment organization for card transactions conducted in accordance with the contracts;

2. To seize cards under the provisions of Article 31 of this Regulation;

3. Other rights under the card payment contract and the card operation support service contract.

Article 26.- Obligations of card-accepting units

A card-accepting unit has the following obligations:

1. To accept cards used for the payment for the purchase of goods and services without increasing prices or applying different prices or requesting cardholders to pay additional charges for card payment for the purchase of goods or services not required for cash payment. If failing to comply with this provision, to be banned from signing card payment contracts with any card payment organizations within one year afterward or between three and five years afterward if committing this violation again;

2. To fully comply with the operational processes related to card transactions of cardholders as guided by the card payment organization; to bear responsibility for losses incurred due to its failure to comply with the requirements of the card payment organization;

3. To reject cards under the provisions of Clause 1, Article 16 of this Regulation;

4. Other obligations under the card payment contract and the card operation support service contract.

Article 27.- Rights and obligations of card operation support service providers

The rights and obligations of card operation support service providers related to the provision of card operation support services for card-issuing organizations, card payment organizations, card-accepting units, card transaction clearing service providers or card switching organizations shall be regulated under service contracts between the involved parties.

Article 28.- Reporting

1. Card-issuing organizations and card payment organizations shall make periodical reports according to the State Banks' regulations on reporting and statistics.

2. Card-issuing organizations, card payment organizations and card transaction clearing service providers shall send reports to the State Bank in the following cases:

a/ Upon specific requests of the State Bank for state management purposes;

b/ When there appear unexpected developments in the issuance or payment operations as well as in the recovery of cardholders' debts, which may affect their operations.

Article 29.- Confidentiality of information

Card-issuing organizations, card payment organizations, card-accepting units and card transaction clearing service providers shall keep secret information relating to card transactions and may supply information only in the following cases:

1. At the request of cardholder;

2. At the request of card-issuing organization or card payment organization;

3. As provided for by law.

Article 30.- Prohibited acts

1. Making, using, assigning and storing fake cards;

2. Assigning cards by their holders to other persons (except for non-bearer prepaid cards);

3. Illegally using cards issued by the card-issuing organization to others;

4. Declaring false personal or institutional information or counterfeiting papers when applying for card use or in the course of using cards;

5. Using cards already announced to be banned from circulation;

6. Illegally accessing or attempting to illegally access the program or database in the card issuance and payment or card transaction clearing system;

7. Making sham transactions.

8. Hacking or conniving to hack information on cards.

Article 31.- Seizure of cards

Card-issuing organizations, card payment organizations, card-accepting units and law enforcement bodies may seize cards in the following cases:

1. They are fake cards;

2. The users of cards fail to prove that they are their holders;

3. The cardholders fail to comply with the regulations of the card-issuing organization (or of the international card organization the trademark of which appears on the cards) on card use;

4. It is requested by the card-issuing organization (or the international card organization the trademark of which appears on the cards).

Article 32.- Handling of breaches

Organizations and individuals that breach the provisions in this Regulation shall, depending on the nature and severity of their breaches, be administratively handled or, in case of serious violation, examined for penal liability; if causing damage, they shall pay compensations therefor in accordance with law.

Article 33.- Responsibilities of State Bank units

1. The Payment Department:

a/ To supervise and join in assessing the compliance with the conditions on bank card operations by card-issuing organizations, card payment organizations and card transaction clearing service providers;

b/ To draft and submit to the Governor for promulgation regulations on code numbers of card-issuing organizations; to grant and manage these code numbers;

c/ To act as an advisory body to assist the Governor in directing card issuance and payment operations of card-issuing organizations, card payment organizations and card transaction clearing service providers;

d/ To receive registrations of types of cards from card-issuing organizations.

2. The State Bank Inspectorate:

a/ To inspect, supervise and assess the compliance with the risk management principles and the provisions of this Regulation and handle violations according to its competence and notify the handling results to the Payment Department;

b/ To notify concerned units to handle violations of the provisions of this Regulation.

3. The Banking Informatics Technology Department

To draft and submit to the Governor for promulgation general principles and technical standards related to informatics technology for application to the card issuance and payment, the connection networks related to card transaction clearing operations so as to ensure confidentiality in bank card payment operations.

4. The Department for Banks:

a/ To perform duties related to the grant, termination or revocation of banking licenses with respect to the card issuance and payment and card transaction clearing of card-issuing organizations, card payment organizations and card transaction clearing service providers under the instructions of the Governor of the State Bank of Vietnam;

b/ To draft and submit to the Governor for promulgation regulations on risk reserves related to bank card business.

Article 34.- Transitional provisions

Card-issuing organizations, card payment organizations and card transaction clearing service providers shall comply with the provisions of this Regulation and other relevant regulations. If a provision of this Regulation invokes other relevant regulations which, however, still need specific guidance of the State Bank, they may follow the agreement between the involved parties or apply appropriate international practice.

The provisions of this Article are not applicable to non-bearer prepaid cards.

Article 35.- All amendments and supplements to this Regulation shall be decided by the Governor of the State Bank.