 |
On 1 December 2009, the payments industry agreed to industry standards for regular payments for charge cards. A regular payment is an agreement between you (the Merchant) and the cardholder where the cardholder authorised you to bill their charge card account at predetermined intervals (e.g. monthly or quarterly) or at intervals as agreed by the cardholder. The amount may differ or be the same for each transaction. The standards for regular payments will be enforced in the Code of Banking Practice, or the Mutual Code of Practice.
As part of the standards, Merchants have responsibilities and obligations to the cardholders who have provided authorisation for you to bill their charge card account at regular intervals.
As a regular payment arrangement is an agreement between you (the Merchant) and the cardholder, you must undertake to do the following:
| 1. |
Provide the terms and conditions for any payment arrangement to your customer; |
| 2. |
Advise your customers of your contact details should they need to advise you of any changes to their charge card account details; and |
| 3. |
Action any customers’ change in account details requests within 5 business days of your receipt. |
Merchants must also correctly identify and authorise regular payments in accordance with the rules of the respective charge card schemes.
|
|
|
