Module Application
- Is your organisation a payment system provider, operator or participant?
- Is your organisation an authorised deposit-taking institution (ADI) with reporting obligations to APRA or an Australian financial services (AFS) licensee with reporting obligations to ASIC?
- Is your organisation a participant member of the Australian Payments Network (AusPayNet), the Issuers and Acquirers Community (IAC) or the Reserve Bank Information and Transfer System (RITS)?
Module Scope
The PAYMENT SYSTEMS module provides information to payment system providers, operators and participants in Australia. Organisations participating in the payments industry face complex regulation. While some obligations are created by federal legislation, the majority are the result of contractual arrangements between payment system participants and the bodies that govern the various networks that support the operation of payment systems in Australia and overseas.
The PAYMENT SYSTEMS module describes and explains these obligations. Organisations that already provide, operate or administer payment systems in Australia can use the module to confirm the adequacy of existing compliance measures and gauge the compliance burden of proposed expansions.
Organisations that are new to the Australian payments industry can use the module to achieve full compliance at every step of their entry into the market.
The PAYMENT SYSTEMS module comprehensively covers a wide range of topics, including:
- Licensing, registration and memberships
- Direct debit and direct credit payments
- Cash and cheques
- Eftpos payments
- Buy Now Pay Later (BNPL) schemes
- High Value Clearance System (HVCS) payments
- The BPAY scheme
- New Payments Platform (NPP) and the fast settlement service
- New and emerging payment systems
- Complaints and dispute resolution
- Information privacy and data protection
- Consumer protections
- Reporting requirements
Organisations, their employees and authorised individuals are all expected to be familiar with the broad landscape of legal obligations to which they are subject as well as the more specific obligations relevant to the regulatory regimes and codes of practice they subscribe to.
The PAYMENT SYSTEMS module should be subscribed to by all Australian organisations with an authorised deposit-taking institution (ADI) licence, Australian financial services (AFS) licence and Australian credit licence (ACL) holders who issue credit cards to consumers or provide advice to consumers on credit card options.
The aim of this module is to equip the subscriber with knowledge of their obligations and the processes and procedures necessary to establish the relevant systems and operations to ensure compliance with all applicable rules, regulations and mandatory procedures.
The specific questions and answers covered by the module are:
- What are the legal obligations and legal regulations?
- How do the obligations and regulations apply to different payment system providers, operators and participants?
- What processes or procedures should be in place to ensure compliance?
- What are the consequences if the legal obligations and regulations are breached?
The PAYMENT SYSTEMS module covers all legislated Commonwealth legal obligations of Australian organisations and demonstrates practical assistance and guidance to ensure that these obligations are complied with through the implementation and maintenance of best practice processes throughout the organisation. The module also covers the role of the various regulators in the payment systems environment and certain exemptions that may apply to particular obligations.
The legislative and regulatory landscape from which the primary legal obligations are derived include:
- Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth)
- Banking Act 1959 (Cth)
- Cheques Act 1986 (Cth)
- Competition and Consumer Act 2010 (Cth)
- Corporations Act 2001 (Cth)
- National Credit Consumer Protection Act 2009 (Cth)
- Payment Systems (Regulation) Act 1998 (Cth)
- Competition and Consumer (Consumer Data Right) Rules 2020 (Cth)
- ASIC Regulatory Guide 165 Licensing: Internal and external dispute resolution (RG 165)
- ASIC Regulatory Guide 211 Clearing and settlement facilities: Australian and overseas operators (RG 211)
- ASIC Regulatory Guide 274: Product Design and Distribution Obligations (RG 274)
- AFIA Code of Practice for Buy Now Pay Later Providers
- AusPayNet: Regulations for High Value Clearing System Framework (CS4)
- AusPayNet: Community of Interest Network (IS1) Regulations
- Issuers and Acquirers Community Framework Regulations
- Bulk Electronic Clearing System (CS2) Regulations
- New Payments Platform Regulations Version 11.0
- SWIFT Corporate Rules
- Reserve Bank of Australia: Exchange Settlement Account Policy
Significant consequences can apply to Australian organisations, their employees and authorised individuals found to have breached or not complied with their legal obligations. These consequences vary considerably depending on the nature and extent of the breach or failure. The PAYMENT SYSTEMS module covers specific consequences in detail which can include significant monetary penalties, disciplinary measures and even suspension or termination of certain licences, registrations or memberships.
The PAYMENT SYSTEMS module covers the roles and responsibilities of payment system providers, operators and participants. The module does not cover the role or actions to be taken by consumers in the event of a breach of regulations or obligations by an organisation.