Account holders who violate prohibited behaviors regarding payment accounts as stipulated will have their accounts closed. |
Decree No. 52/2024/ND-CP stipulates that the opening and use of payment accounts by customers at payment service providers shall comply with the regulations of the State Bank and relevant laws.
Account holders can use their payment accounts to deposit and withdraw cash, and request payment service providers to perform legitimate payment transactions. Account holders have the right to request payment service providers to provide information about transactions and balances on their payment accounts, as agreed with the payment service provider where the account is opened.
4 Cases of Payment Account Freezing
According to Decree No. 52/2024/ND-CP, a payment account may be partially or fully frozen under the following circumstances:
1. By prior agreement between the account holder and the payment service provider, or at the account holder’s request;
2. When there is a written request or decision from an authorized agency in accordance with the law;
3. When the payment service provider detects a mistake or error in crediting the customer’s payment account, or honors a refund request from the payment service provider that sent the money due to an error or mistake compared to the sender’s payment order after crediting the customer’s account. The frozen amount shall not exceed the mistaken or erroneous amount;
4. When there is a request for freezing from one of the joint account holders, unless there is a prior written agreement between the payment service provider and the joint account holders.
The decree also stipulates that account holders have the obligation to provide complete and truthful information and comply with the regulations on opening, using, and authorizing the use of payment accounts set by the payment service provider. Account holders must also ensure sufficient funds (positive balance) in their payment accounts to execute payment orders, unless there is an overdraft agreement with the payment service provider.
Payment service providers, on their part, are obliged to execute legitimate payment orders from account holders in a timely manner.
Payment service providers have the right to refuse to execute payment orders if the orders are illegitimate or there are legal grounds to determine that the account holder is engaging in prohibited activities as per Article 8 of this decree, or if the payment account does not have sufficient funds, unless otherwise agreed. In case of refusal to execute a payment order, the payment service provider must inform the account holder of the reason for such refusal.
Termination of Payment Account Freezing
Regarding the termination of account freezing, Decree No. 52/2024/ND-CP stipulates that the lifting of the freeze shall be done:
– Based on a written agreement between the account holder and the payment service provider;
– Upon the decision of the authorized agency to terminate the freeze in accordance with the law;
– After rectifying the mistake or error in the money transfer as mentioned in point 3 above;
– When there is a request to terminate the freeze from all joint account holders or as per a prior written agreement between the payment service provider and the joint account holders.
The decree clearly states that payment service providers, account holders, and authorized agencies shall be liable for compensation in accordance with the law if they wrongfully freeze a payment account, causing damage to the account holder.
