The HKMA issued guidance to authorized institutions (“AIs”) which are payment card issuers to enhance protection of payment card customers on 20 June 2023. These AIs are expected to strengthen protection in four areas namely:
(a) empowerment: enhancing management of card-not-present transactions, suspension and reactivation of cards, credit limits and over-the-limit facilities, as well as encouraging reports of unauthorised transactions;
(b) support, communication and education: aiming to strengthen the identification, follow-up and precautionary measures for suspicious transactions;
(c) unauthorised transaction handling and security measures: providing for a pragmatic and transparent investigation process in relation to unauthorised transactions, as well as additional authentication and fraud detection tools; and
(d) responsible borrowing: providing reminders to cardholders of financial implications of repayment practices, credit limit and cash advance transactions.
The HKMA and the industry will continue to engage with other relevant stakeholders including telecommunication companies to explore the use of technology in bolstering cardholder protection. Relevant AIs are expected to take steps as soon as practicable. They should have complied with the requirements by the end of June 2023, and by the end of 2023 for those involving system changes.
The HKMA circular is available here. To view the details of the enhancement measures, please click here.
