Standards for Issuing and Accepting Contactless Electronic Payments in the Arab Republic of Egypt

Contactless Payments Standards for Issuing and Accepting Contactless Electronic Payments in the Arab Republic of Egypt

Page	Section
5	Introduction
6	General Definitions
7	-1 NFC Technology
8	-2 Responsibilities and Obligations of the Board of Directors and Senior Management
9	-3 AML/CFT Rules and Information Security
10	-4 Rules for Issuing Contactless Payment Instruments
12	-5 Rules for Accepting Contactless Payments
14	-6 Reporting of Unusual Transactions
15	7 - Technical Requirements for Contactless Payment Service Providers
16	-8 Procedures for Obtaining Licenses to Provide the Service

Introduction

In light of the interest that the Central Bank of Egypt places on supporting and encouraging the use of electronic payment means and channels, with the aim of transitioning to an economy with less reliance on cash notes and achieving financial inclusion, and given the current technological development in the field of electronic payments and the emergence of Contactless Payments, and the need to keep pace with this development to ensure tangible steps are taken in the field of electronic payments securely for all parties participating in the electronic payment process, the following rules have been issued.

Field	Definition
Near Field Communication "NFC"	Contactless payments that are performed using radio waves (radio frequency) by credit cards, debit cards, mobile payment devices (smartphones or smart watches), wearable devices, and other devices that utilize RFID and/or NFC technologies, enabling short-range communication between embedded chips and antennas within a few centimeters to complete transactions securely.
Secure Code	The security code assigned to the customer, which can be either Static or Dynamic. Dynamic codes are generated by the device used for transactions to prevent fraud.
Dual Interface (NFC)	Terminals that support both contactless and traditional card reading data transmission methods.
EMV Contactless	Specifications developed jointly by EMVCo that enable interoperability between terminals and payment instruments not exceeding 4 cm.
Dual Interface Terminals	Terminals that support both contactless and traditional card reading data transmission methods.
POS Terminals	Point of Sale terminals that support contactless payment transactions in case more than one contactless payment instrument is present in the same transaction area.
Collision	The phenomenon where multiple contactless payment instruments are present in the same transaction area.

These rules apply to all banks operating in the Arab Republic of Egypt and branches of foreign banks, representing the minimum required to provide contactless payment services securely. All banks must not limit themselves to this but must ensure taking all necessary measures regarding risk management associated with providing this type of banking service.

These rules regulate only the issuance and acceptance of contactless payments, without prejudice to previous supervisory regulations for electronic banking operations issued by the Central Bank of Egypt, as well as instructions and rules regarding the implementation of banking operations, anti-money laundering and counter-terrorism financing controls issued by the Central Bank of Egypt, and due diligence procedures issued by the Anti-Money Laundering and Counter-Terrorism Financing Unit.

8 Standards for Issuing and Accepting Contactless Electronic Payments

-2 Responsibilities and Obligations of the Board of Directors and Senior Management

The Board of Directors assumes responsibility for approving the business strategy prepared by the bank's senior management, as well as making a clear strategic decision regarding the bank's desire to provide payment services using Contactless Payments or not. Specifically, the Board of Directors must ensure the following:

• Compatibility of payment service plans using such cards with the bank's strategic objectives.
• Analysis of risks specific to these services.
• Preparation of appropriate procedures to monitor and mitigate risks.
• Continuous review of the results of payment services using contactless payments according to defined plans and objectives.

The bank must establish a risk policy concerning service partner companies and study risks related to the following:

• Refunds.
• Fraud.
• Disputes.

-3 AML/CFT Rules and Information Security

Banks that issue or accept contactless payment instruments must implement the following:

• Compliance with the Anti-Money Laundering Law issued by Law No. 80 of 2002 and its executive regulations, and the banking supervisory controls regarding combating money laundering and terrorism financing, and the Customer Identification Rules issued in 2011 and all subsequent amendments thereto by the Central Bank of Egypt, as well as due diligence procedures for customers of the [text cuts off here]...

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