ASIC has today released a consultation paper proposing changes to the Electronic Funds Transfer Code of Conduct (EFT Code).
Consultation Paper 90, Review of the EFT Code of Conduct: ASIC Proposals builds on Consultation Paper 78 Reviewing the EFT Code (released in January 2007) and proposes:
- making it easier for subscribers to deliver required information to consumers electronically;
- further promotion of the EFT Code, for example, introducing a logo signifying that a business is a subscriber;
- redrafting the EFT Code in plain English; and
- dealing with mistaken internet payments through the EFT Code.
The consultation paper proposes retaining the existing, long-standing rules on liability for disputed transactions.
The EFT Code protects individual consumers when they perform electronic transactions. The consultation paper also asks whether the Code should be extended to protect small business consumers as well as individuals.
Submissions on the consultation paper should be emailed to: eftreview@asic.gov.au. Submissions close on 5 December 2008.
Background
The EFT Code is a voluntary industry code of practice covering all forms of consumer electronic payment transactions.
The EFT Code regulates consumer ATM and EFTPOS transactions, card-not-present credit card transactions, telephone and internet banking, stored value cards and other stored value products.
The EFT Code only applies to businesses that subscribe to it. The overwhelming majority of banks, building societies and credit unions offering electronic payments subscribe. There are also a small number of other subscribers.
The EFT Code provides a wide range of consumer protections including:
- disclosure of terms and conditions;
- requirements to give consumers transaction receipts and statements;
- rules about liability for disputes about unauthorised transactions;
- dispute resolution requirements; and
- privacy obligations.
ASIC is responsible for administering the EFT Code and is required to periodically review it and associated administrative arrangements, in consultation with other stakeholders.
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