Regulatory Alerts2023-04-25
Added · Updated
Principles for Handling of Unauthorised Payment Card Transactions
The Hong Kong Monetary Authority issued this circular to establish fair handling principles for authorized institutions managing unauthorised payment card transactions and related disputes. Banks must treat customers fairly, ensuring cardholders are not held liable for losses unless they acted with gross negligence, while also reviewing over-the-limit facility agreements and enhancing customer awareness of fraud prevention. The regulator requires transparent processes for liability determination, mechanisms for appeals, and immediate steps to educate the public on safeguarding card information and authentication factors.