Notice No. 10/2012 of April 2 on the Regulation of Bank Payment Cards

Published in the Republic's Official Gazette, I series, No. 63, of April 2 NOTICE NO. 10/2012 of April 2 SUBJECT: REGULATION OF BANK PAYMENT CARDS

The National Bank of Angola (BNA), in exercising its function of monitoring and overseeing retail payment instruments and subsystems, promotes compliance with safety, efficiency, and transparency objectives, which contribute to creating a culture of sustained use of electronic payment instruments and lead to the growth of the banked population. These objectives are structuring for the development of the Angola Payment System (SPA) and form the basis for implementing the Multicaixa system, as a national brand of payment cards and shared, universal terminal network.

Considering the need to update the current legislation within the Angola Payment System; In exercise of the competence conferred upon me by item b) of paragraph 2 of Article 7 of Law No. 5/05, dated July 29, the Angola Payment System Law, and of Article 28 of Law No. 16/10, dated July 15, the National Bank of Angola Law; I DETERMINE:

CHAPTER I GENERAL PROVISIONS

Article 1. (Subject and Scope)

1. This Notice regulates the activities of issuance, acceptance, and use of payment cards. a) prepaid cards with restricted scope are not covered by this Notice, according to the definition in Article 2, provided they are not accepted on Multicaixa network terminals.
2. The Issuer and Acquirer activities for payment cards subject to this Notice are exclusive to banking financial institutions.
3. The provision of the preceding paragraph is exempted for EMIS as Acquirer of International Payment Systems in ATMs of the Multicaixa Network, whenever the supporting bank for the terminal does not ensure this function.

Article 2. (Definitions) For the purposes of this Notice, the following are understood:

1. Acceptor - entity that accepts payment for goods or services with a payment card and maintains a contract with an Acquirer to perform this service.
2. Acquirer (acquirer) - bank that contracts with an Acceptor for card payment consent and acquires the payment credits from it.
3. ATM - Automated Teller Machine (Cash Automatic).
4. Bank - same as Banking Financial Institution.
5. ATM Supporting Bank - Banking Financial Institution responsible for the installation conditions and logistical support of the ATM, namely cash and receipt paper. Normally, the Supporting Bank is the owner of the ATM.
6. Automated Teller Machine - electromechanical equipment that allows authorized users, normally using plastic cards it can validate, to make cash withdrawals from their bank accounts and/or access other services.
7. Credit Card - payment card associated with a card account denominated in Kwanzas that allows access to credit granted by the Issuer, namely for making payments and cash withdrawals (cash advance).
8. Debit Card - payment card associated with a current deposit account opened with the Issuer, allowing its Holder to conduct financial transactions, namely payments and cash withdrawals, through the use of the respective balance.
9. Payment Card or simply Card - payment instrument, presented in the form of a plastic card or other payment device or code, provided by an issuing financial institution (the Issuer), to enable its User to conduct financial transactions, namely payments and/or cash withdrawals, at terminals where it is accepted.
10. Multicaixa Card - issued by member banks of the system and accepted at all terminals of the Multicaixa network.
11. Multibrand Card - plastic card that aggregates logical cards of two different brands. Same as cobranded card.
12. Prepaid Card - payment card that is, concurrently, issued or reloaded upon receipt of funds in Kwanzas, accepted at merchants or self-service terminals for making payments or obtaining cash and, at the Issuer's option, may or may not be reloadable.
13. General Use Prepaid Card - any prepaid card accepted through the Multicaixa network by multiple unrelated merchants, for payment of unspecified goods and/or services.
14. Restricted Use Prepaid Card - any prepaid card that is only accepted by a specific merchant or restricted set of related merchants and/or for payment of a specific or restricted set of goods or services, not allowing cash withdrawals.
15. Identified Prepaid Card - prepaid card on which the Issuer must register and store the Holder's identification.
16. Unidentified Prepaid Card - card on which the Issuer does not need to collect identification data of its respective Holder.
17. Non-Reloadable Prepaid Card - prepaid card on which only an initial loading is possible at the time of acquisition, with no additional loadings allowed.
18. Reloadable Prepaid Card - prepaid card on which additional loadings are possible, beyond the initial loading.
19. Merchant - any legal entity that meets the conditions to be a Card Acceptor.
20. General Terms and Conditions (GTC) - set of characteristics and rules for the use of a specific card, which characterize it and are defined by its respective Issuer in accordance with current regulation.
21. Card Account - account associated with a prepaid or credit card, different from Current Deposit Account, and part of the card management system responsible for managing the relevant card.
22. Prepaid Card Float Account - account of CONTIF (defined by BNA) that records the monetary value stored in prepaid cards. This account cannot record movements unrelated to the operation of prepaid cards issued by the financial institution.
23. Expiry Date - date on which the card ceases to be accepted at acceptance network terminals. The card is valid until the end of the month indicated on the plastic.
24. EMIS - Interbank Services Company, responsible for managing the Multicaixa network, including clearing operations performed on it.
25. Issuer - financial institution that issues cards.
26. Payment Finalization - actual settlement of accepted transactions in the Acceptor's current deposit account.
27. Banking Financial Institution - is the bank, a company whose main activity consists of receiving deposits or other repayable funds from the public in order to apply them for its own account, by granting credit.
28. Card Brand - commercial designation that identifies a specific system or network for card acceptance (for example, Multicaixa, MasterCard, Visa). The same brand may correspond to cards of various types.
29. Multicaixa - national brand of the national and universal network of card acceptance terminals.
30. Network Operator - entity responsible for managing the database of terminals in the Multicaixa system and for authenticating ATMs and TPA where card transactions are performed.
31. Acquirer Processor - Angolan legal entity that provides technical facilities for the Acquirer to receive information on accepted operations from the acceptor.
32. Issuer Processor - Angolan legal entity that provides technical facilities to the Issuer in processing transactions with cards issued by it. The Issuer Processor is the entity that performs logical card production, issuance of PIN letters, and validation of cards used at payment terminals in the Multicaixa network.
33. Multicaixa Network - the national and universal network of terminals providing payment services and/or cash withdrawals.
34. SPA - Angola Payment System.
35. SPI - International Card Payment Systems, identifiable by their respective brands.
36. Total Effective Annual Cost (TEAC) - total effective cost rate of credit, including interest, commissions, taxes, fees, tariffs, insurance, plus other expenses charged to the consumer directly linked to credit use.
37. Automatic Payment Terminal - electromechanical equipment that allows authorized users, normally using plastic cards it can validate, to make payments at physical locations selling goods or providing services; also allowing other services such as balance inquiries for accounts associated with the used card.
38. Card Type - species of payment card regarding the funds used. Three types are considered: prepaid, debit, or credit.
39. Holder - person who contracts the issuance of a card and is permitted to use it, according to terms and conditions established in the adhesion contract.
40. TPA - same as Automatic Payment Terminal.
41. User - authorized natural person to use a card.

Article 3. (Contract)

1. Relationships between Issuers and Holders, and between Acquirers and Acceptors must be regulated by written contract. a) The provision of this paragraph is exempted for the issuance of non-reloadable prepaid cards used exclusively in Angola.
2. In identifying counterparties, banks must adopt the principles defined in Notice 01/2011 of May 26, consistent with combating money laundering, terrorism financing, and fraud prevention objectives.
3. The contract may take the form of an adhesion contract, in which case it consists of General Terms and Conditions, with a more stable character, and an annex containing conditions subject to more frequent modification.
4. In case of divergence between general terms and particular conditions, the former prevail.
5. The contract must be drafted in Portuguese, in accessible language, easily understandable, and must have a graphical presentation allowing easy reading by an average visual acuity reader.
6. Clauses defining charges or interest rates merely by reference to the price list existing at counters or other locations or supports are prohibited.
7. The contract must define: a) the validity period and conditions for its renewal. i) In an issuance contract, validity and renewal apply to the underlying card. b) that the Holder or Acceptor, as applicable, may directly file justified complaints to the National Bank of Angola based on non-compliance by the Issuer or Acquirer, respectively, with applicable legislation and regulation. c) situations in which parties may terminate the contract and its effects.

Article 4. (Issuance)

1. A card may only be issued following a request, or a renewal or replacement process for another card of the same type. a) A bank may issue an unsolicited card if, concurrently, the following conditions are met: i) the card is not valid, meaning it is not in a condition to be used by the customer for transactions; ii) it is accompanied by clear information informing the customer that the card is unvalidated and how they can discard it at no cost if not interested in validating it; iii) it is accompanied by the draft contract that will apply if the card is validated by the customer; iv) its validation implies a manifestation of interest by the customer and the Issuer has conditions to validate the customer's identity.
2. Delivery to holders, of both the card and its respective secret code (PIN), if applicable, must be carried out with special care, adopting appropriate security rules that prevent use by third parties.
3. The Issuer's name or its acronym, if sufficiently well-known, must clearly appear on all cards and in all related advertising actions.
4. The same physical card may correspond to only one card type.
5. In a multibrand (cobranded) card, each brand must be recognizable through the name and/or logo of the Issuing entity and the card brand.
6. Account statements and other forms of information to holders must highlight: a) commissions and other charges applied, including taxes, if applicable, per transaction and in an disaggregated manner; b) identification of the foreign currency, the transaction value in that currency, and its respective equivalent in Kwanzas, for transactions in foreign currency.
7. The maximum daily limit for ATM cash withdrawals by card will be defined in specific regulation.
8. The Issuer must keep on file, by electronic process or microfilming, for a period of five years counted from the date of occurrence, card statements and account statements related to withdrawals and payments made abroad, for proof purposes if requested by the National Bank of Angola.

Article 5. (Specific Rules for Issuance Contracts)

1. Without prejudice to other current norms, the Issuer's contract with the Holder must establish in general contractual clauses taking the form of an adhesion contract, all rights and obligations of the contracting parties, namely: a) The Holder cannot be held liable for card uses resulting from loss, theft, robbery, or forgery of the card, after notification to the Issuer, unless gross negligence or fraud by the Holder is involved. i) The Holder's liability for uses verified before communication to the Issuer is limited to the lesser of the following values at the date of the first considered irregular operation: (1) in the case of prepaid or debit cards, to the available balance in the account associated with the card; for credit cards, to the available balance relative to the credit limit known by the Holder; and (2) the maximum value to be defined in specific regulation; unless gross negligence or fraud by the Holder is involved. b) The Issuer is responsible for incorrect recording of any transaction, except in cases of gross negligence or fraud by the Holder. In case of dispute, the burden of proof lies with the party invoking the fact in their favor. c) In case of dispute regarding an operation not authorized by the Holder, the burden of proving its actual execution lies with the Issuer, obliging the Holder to provide best cooperation, namely by providing information and supplying copies of documents requested regarding the operation in question. d) The Issuer cannot alter contractual conditions without notifying the Holder, with a minimum prior notice of 45 days, leaving this party with the right to reclaim the paid annual fee proportionally to the remaining undecurred period, if they wish to terminate the contract due to disagreement with introduced changes. e) Using the card after the effective date of the contract changes informed according to the preceding item constitutes a presumption of acceptance of those changes. f) The conditions under which the Issuer is entitled to demand card return. g) Contracting cannot be conditioned on the Holder's authorization for their personal data and the User's, if different, to be provided by the Issuer to third parties for the purpose of promoting or selling goods or services. h) The Issuer is obliged to maintain a customer service allowing the Holder and User to contact them, directly or through their representative, twenty-four hours a day, via the indicated telephone number(s), from any country where the card is accepted.
2. General Terms and Conditions must provide complete and clear information on: a) rules to be followed for correct and secure card use, including, namely, information on: i) operations that can be performed and how to perform them. (1) in the case of multibrand card use at an acceptance point where both brands are accepted, what are the rules for defining the card brand considered in performing the transaction. ii) identification of acceptance locations. iii) security principles in card and terminal use. (1) recording the PIN on the card itself or in something the User habitually keeps and carries with the card is considered gross negligence by the User. b. charges - fees, commissions, expenses, or taxes - that may result from card possession or use. c. the validity period of the card and renewal conditions. d. the overdue interest rate or method used for its determination, if applicable. e. the method of determining the exchange rate applied to foreign currency operations, if applicable.
3. A contract is only considered concluded when the Holder has a valid card and a copy of the contractual conditions accepted by them.
4. The Issuer is obliged to send to the National Bank of Angola, Behavioral Supervision Department, copies of contract drafts for cards they intend to issue. a. The National Bank of Angola may consider an presented draft proposal inadequate, which will determine its substitution in contracts that may have been concluded with clients and the prohibition of new contracting from the moment the National Bank of Angola informs the Issuer. b. whenever the Issuer ceases to have cards contracted based on a specific draft, they must inform the National Bank of Angola.
5. Issuers must make available the general terms and conditions for all cards they issue, completely and updated, on their internet page, in an easily identifiable manner without requiring prior registration by interested parties.

Article 6. (Acquirer Service)

1. The Acquirer that becomes aware of any fraud or forgery practiced by a specific Acceptor in transactions performed through bank cards must immediately: a) terminate the contract with the relevant Acceptor; b) communicate to the Credit Risk Central, operated by the National Bank of Angola, the fraud and identification of the relevant Acceptor, in the form and timeframe defined in specific regulation.
2. Any Acquirer is prohibited from establishing a contract with a Merchant that has recorded an incident, according to the aforementioned preceding paragraph.

Article 7. (Specific Rules for Acceptance Contracts)

1. An acceptance contract for a card brand cannot impose acceptance of cards from another brand.
2. An acceptance contract for prepaid and/or debit cards cannot impose acceptance of credit cards, and vice-versa.
3. Without prejudice to other current norms, the Acquirer's contract with the Acceptor must establish in general contractual clauses taking the form of an adhesion contract, all rights and obligations of the contracting parties, namely: a) Acquirer's obligations related to payment finalization to the Acceptor; b) The Acceptor cannot be held liable for fraudulent transactions, provided they have complied with card acceptance rules timely communicated by the Acquirer; c) The Acceptor is obliged to confirm User identification whenever payment exceeds an amount to be defined in specific regulation. i) Identity confirmation must be based on a photographic official identification document. d) Payment to the Acceptor for transactions performed within national territory will be made in Kwanzas, through credit to the current deposit account indicated for this purpose by the acceptor and independent of the card used in the transaction; e) In case of dispute regarding an electronic operation, the burden of proof lies with the Acquirer, obliging the Acceptor to provide best cooperation, namely by providing information and supplying copies of documents requested regarding the operation in question; f) conditions under which an Acquirer's payment obligation to the Acceptor enters default. g) interest rate to be used in case of default, whether due to the Acquirer or the Acceptor, or the method for its determination; h) The Acquirer cannot alter contractual conditions without notifying the Acceptor, with a minimum prior notice of 45 (forty-five) days, leaving this party with the right to terminate the contract due to disagreement with introduced changes; i) Using an Acceptor terminal after the effective date of contract changes informed according to the preceding item constitutes a presumption of acceptance of those changes; j) responsibilities of each contracting party related to deficient transmission, non-reception, or deficient reception by the Acquirer or transaction operator of operations performed in TPA installed at the Acceptor; k) The Acquirer is obliged to maintain a customer service allowing the Acceptor to contact them, directly or through their representative, during normal business hours of the Acceptor's establishment, via the indicated telephone number(s).
4. The Acquirer is obliged to send to the National Bank of Angola, Payment Systems Department, drafts of contracts they intend to conclude with Acceptors. a) whenever the Acquirer ceases to have terminals contracted based on a specific draft, they must inform the National Bank of Angola.
5. General acceptance conditions must provide complete and clear information on: a) Rules for correct and secure card acceptance and terminal use, including, namely, information on: i) operations that can be performed; ii) identification of cards and respective holders; iii) operation and security principles. b) charges resulting from possession and/or use of payment terminals.

Article 8. (Multicaixa Network)

1. All ATMs with external access to bank branches or premises, or providing services outside normal business hours, are mandatory members of the Multicaixa Network.
2. Acceptance in Angola of payment cards subject to this Notice can only occur at Multicaixa Network terminals.
3. Services available in ATMs and TPAs of the Multicaixa network are independent of the supporting bank and acquiring institution, respectively, provided the card brand and type are accepted at the terminal.
4. The Multicaixa Network must be certified for acceptance of SPI cards.
5. The Multicaixa Network is the acceptance network in Angola for SPI cards.
6. All