Regulatory Alerts2024-11-05
Added · Updated
HKMA Expectations on Payment Card Direct Debit Authorisation During Merchant Suspension or Closure
The Hong Kong Monetary Authority issued this circular to establish consumer protection expectations for Card Issuing and Merchant Acquiring Banks regarding payment card direct debit authorisation when merchants suspend or close operations. Card Issuing Banks are required to maintain effective communication channels, provide prompt assistance with cancellation or chargeback requests, and ensure adequate staffing to handle potential surges in enquiries. Merchant Acquiring Banks must suspend or cease collecting direct debit payments for affected merchants as soon as practicable to prevent further unauthorized charges and alleviate pressure on issuing banks.