ASIC has released the new ePayments Code which provides a best practice consumer protection regime for electronic payment products.
PayPal Australia welcomed the new ePayments Code and has agreed to sign up to the revised code by the end of the transition period which is 20 March 2013. ASIC expects it to be joined by banks, credit unions and building societies who are members of the existing version of the code. ASIC is also in discussion with a number of other providers of new payment services about subscribing to the new code.
The ePayments Code provides key consumer protections in cases of fraud and unauthorised transactions and plays an important role in the regulation of electronic payment facilities in Australia.
The release of the Code concludes an extensive review of the previous Electronic Funds Transfer Code of Conduct (EFT Code), involving widespread consultation between ASIC, industry and consumers. A major objective of the review was to ensure the Code covers all consumer electronic payment products, not just those from traditional banking organisations.
ASIC Chairman Greg Medcraft said: ‘ Our new Code sets out best practice in consumer protection and is product neutral and in plain English. It will encourage consumers to have confidence in our epayment systems. I encourage all providers of consumer payment products to demonstrate they put their customers first and subscribe to the Code. Industry members are important gatekeepers and self-regulation has a role to play in improving industry standards and consumer experiences.’