Cases of blocking payment accounts

The Government issued Decree No. 52/2024/ND-CP regulating non-cash payments; which regulates the opening and use of payment accounts as well as clearly states cases of payment account blockade.

Payment account holders who violate prohibited payment account behavior as prescribed will have their accounts closed.

Decree No. 52/2024/ND-CP stipulates: 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.

Payment account holders are allowed to use their payment accounts to deposit and withdraw cash and request payment service providers to conduct valid payment transactions. Payment account holders have the right to request payment service providers to provide information on transactions and balances on their payment accounts according to the agreement with the payment service provider where the payment account is opened.

Payment account holders are obliged to provide complete and truthful information and comply with the regulations on opening, using and authorizing the use of payment accounts of payment service providers and must ensure that there is sufficient money (Credit balance) in the payment account to execute the payment order, except in cases where there is an overdraft loan agreement with the payment service provider.

Payment service providers are obliged to fully and promptly execute valid payment orders of payment account holders.

The payment service provider has the right to refuse to execute the payment order of the payment account holder when the payment order is invalid or there is a legal basis to determine that the account holder has violated the prohibited acts as prescribed in Article 8 of this Decree or when the payment account does not have enough money, unless otherwise agreed. In case of refusing to execute the payment order of the payment account holder, the payment service provider must notify the payment account holder of the reason for refusal.

4 cases of blocking payment accounts

According to Decree No. 52/2024/ND-CP, a payment account is partially or fully frozen in the following cases:

1- According to prior agreement between the payment account holder and the payment service provider or at the request of the account holder;

2- When there is a decision or written request from a competent authority as prescribed by law;

3- When the payment service provider discovers a mistake or error when mistakenly crediting the customer's payment account or performs a request for refund from the money transfer service provider due to a mistake or error compared to the payment order of the remitter after crediting the customer's payment account. The amount blocked in the payment account must not exceed the amount of the mistake or error;

4- When there is a request for blocking by one of the joint payment account holders, except in cases where there is a prior written agreement between the payment service provider and the joint payment account holders.

Termination of payment account blocking

Decree No. 52/2024/ND-CP stipulates that the termination of payment account blocking is carried out:

- According to written agreement between payment account holder and payment service provider;

- When there is a decision to end the blockade by a competent authority in accordance with the provisions of law;

- The errors and mistakes in money transfer payments specified in point 3 above have been resolved.

- Upon request to terminate the blockade by all joint payment account holders or upon prior written agreement between the payment service provider and the joint payment account holders.

The Decree clearly states that payment service providers, payment account holders and competent authorities, if they illegally block or request payment accounts to be blocked, causing damage to payment account holders, shall be responsible for compensation in accordance with the provisions of law.

Close payment account

In addition, Decree No. 52/2024/ND-CP also clearly stipulates that payment account closure is carried out when:

- The payment account owner has requested and fully performed all obligations related to the payment account;

- The payment account holder is an individual who has died or been declared dead;

- The organization has a payment account that has ceased operations in accordance with the provisions of law;

- The payment account owner violates the prohibited acts regarding payment accounts specified in Clause 5 and Clause 8, Article 8 of Decree 52/2024/ND-CP.

- Cases subject to prior written agreement between the payment account holder and the payment service provider;

- Other cases as prescribed by law.

The above regulations take effect from July 1, 2024.

According to baochinhphu.vn

See the original Government newspaper news here

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