ASIC Proposes Updates to the ePayments Code

The Australian Securities and Investments Commission (ASIC), which is responsible for administering the ePayments Code, including reviewing it, is seeking feedback on proposed updates to the Code in order to ensure it continues to be effective and relevant to consumers and subscribers.

The ePayments Code provides important consumer protections in relation to electronic payments​, including ATM, EFTPOS, credit and debit card transactions, online payments, and internet and mobile banking. Most banks, credit unions and building societies in Australia, as well as a small number of other providers of electronic payment services, subscribe to the Code.

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The watchdog's proposed updates primarily relate to the following areas:

· compliance monitoring and data reporting;

· mistaken internet payments;

· small business protections;

· unauthorised transactions; and

· complaints handling.

ASIC is also considering modernising the Code in order to reflect changes in the field of electronic payments since its most recent review of the Code, which was completed back in December 2010.

The Australian watchdog will form its final positions on updates to the Code based on the consultation results. It welcomes submissions on the consultation paper from all interested parties, which are due by Friday 2 July 2021.

Subscription to the Code is voluntary. However, the Government has accepted recommendations to mandate the Code. Most recently, in 2019, the Council of Financial Regulators recommended that ASIC be given the power to make compliance with the Code mandatory, such as through a legislative rule-making power. ASIC's current review of the Code in its voluntary form is an interim measure ahead of the Code eventually becoming mandatory through legislation.