Chapter 2 Users and Contracted Institutions Administration |
| Article 3 |
When an electronic payment institution accepts a user for registration, a contract entered between the parties shall comply with the provisions of Article 30 of the Act, and the electronic payment institution shall allow users to inquire the contents of the contract in a manner agreed by the parties. |
| Article 4 |
An electronic payment institution shall consider the types of the contracted institutions, transaction amount, transaction modes, deferred products or services, and risks raised from selling products to establish mechanisms for credit checking, risk management, contract signing, training, audit management, and periodic review, and meet the following requirements:
1. The contract between the electronic payment institution and the contracted institution shall contain an agreement that the contracted institution shall not be involved in any transactions prohibited by law or regulations stipulated by central government authorities in charge of certain industry.
2. The contract between the electronic payment institution and the contracted institution shall contain an agreement that if the contracted institution sells or provides deferred products or services, the contracted institution shall adopt escrow or declare trust and disclose such escrow or trust information to the users.
3. The contract between the electronic payment institution and the contracted institution shall contain an agreement that the contracted institution will comply with the following provisions of transaction records related safekeeping and inquires:
(1) The contracted institution shall properly retain relevant data of transactions, documents and receipts for at least 5 years; and
(2) The contracted institution shall provide transaction related information as requested by the electronic payment institution, including but not limited to the terms of transaction, the ways of fulfillment of obligation, transaction results, as well as businesses operated by the contracted institution and its qualifications. With regard to information requested by the electronic payment institution, the contracted institution shall provide detailed descriptions and necessary documentation. |
| Article 5 |
When an electronic payment institution signs or terminates a contract with a contracted institution, the electronic payment institution shall report to the Joint Credit Information Center (JCIC).
Where an electronic payment institution accepts a registration application of a non-individual contracted institution or an individual contracted institution with an average transaction amount generated from the business of collecting and making payments for real transactions as an agent that reaches NTD 80,000 in the most recent six months, the electronic payment institution shall request the following information from JCIC and retain related records for reference. However, these requirements do not apply if a dual-status electronic payment institution has completed the information check of the contracted institution with the JCIC, in accordance with related regulations governing the assessment of credit card contracted merchants, and the said contracted institution agrees to provide the checked information to the electronic payment institution under business purposes:
1. Information of contracts signing and termination with the contracted institution reported by the electronic payment institution;
2. Information of contracts signing and termination with the contracted merchant reported by the credit card business institution;
3. Other information required by the competent authority.
Where the contracted institution applies for a new electronic payment account or engaging in stored value cards related services of collecting and making payments for real transactions as an agent, the electronic payment institution shall implement the information check again with the JCIC in accordance with the preceding paragraph.
Where the electronic payment institution does not meet requirements in the preceding three paragraphs, they shall make adjustments to meet the requirements before June 30 of 2022. |
| Article 6 |
An electronic payment institution shall adopt the following risk management measures for contracted institutions:
1. Establishing credit checking mechanism and process for contracted institutions. Staff assigned to take charge of contracted institution related review, authorization and administration may not serve concurrently as business personnel;
2. Establishing risk ranking mechanism for contracted institutions and adopting measures such as transaction amounts limits, strengthening transaction monitoring, conducting on-site visits, charging deposits, requiring the provision of other guarantees or postponing funds clearing for contracted institutions ranked at a higher risk level to mitigate transaction risk;
3. Establishing the contracted institution investigation, evaluation or on-site visit mechanisms, the contents of investigation and evaluation shall include irregularities in transactions and the information specified in Paragraph 2 of the preceding article; and based on the risk level of contracted institution, conducting investigation, evaluation or on-site visit at a proper frequency and in an adequate manner, and retaining relevant records are also required; and
4. Other risk management measures required by the competent authority.
Where an electronic payment institution requests a contracted institution to charge deposits in accordance with requirements in Subparagraph 2 of the preceding paragraph, the electronic payment institution shall consider the types of the contracted institutions, transaction amount, transaction modes, and risks raised from selling products to evaluate the deposit amount to be charged for the contracted institution. The contracted institution shall save the deposit in other deposit account than the dedicated deposit account agreed by the electronic payment institution and the contracted institution. |
| Article 7 |
When a user of an electronic payment institution uses an e-payment account for conducting the business of collecting and making payments for real transactions as an agent, this user shall sign a contract with the electronic payment institution to become a contracted institution. However, the payment funds collection of the following transactions within the territory of the Republic of China, once the authenticity of the transaction is verified and records are retained, do not be defined as the transactions of a contracted institution, and the provisions in Article 4 to 6 shall not apply:
1. Redemption of prizes for electronic invoices;
2. Payments collected for the repurchase, redemption, or distribution of dividends for purchased financial products or services;
3. Payments collection for salary, or remuneration related income;
4. Payments collection for lending and repayment of NTD loans through P2P lending platform;
5. Payments collection for loan appropriation under banking business;
6. Payments collection for subsidies distributed or tax refunds from government agencies;
7. Other conditions specified by the competent authority. |
| Article 8 |
Where an electronic payment institution proceeds to engage in the business of collecting and making payments for real transactions as an agent for offshore contracted institutions and offshore users, it shall submit two copies of the following documents and apply for approval to the competent authority:
1. An application form;
2. Minutes of the board of directors meeting;
3. Business plan;
4. Internal business guidelines and business procedures;
5. Other documents as required by the competent authority.
The competent authority shall consult the Central Bank before granting approval under the preceding paragraph. |
| Article 9 |
When a user plans to withdraw funds from his/her e-payment account or an electronic payment institution remits funds to a contracted institution, the electronic payment institution shall meet requirements in Paragraph 1, Article 19 of the Act, and shall transfer the funds into the user’s or the contracted institution’s same-currency deposit account which is opened in a financial institution. However, where the user or contracted institution meets one of the following conditions and the electronic payment institution has reviewed and confirmed the accuracy of related supporting documents, such requirements shall not apply:
1. For a non-individual user or contracted institution operated as a sole proprietorship, the electronic payment institution may transfer the withdrawal or payment funds to the responsible person’s same-currency deposit account which is opened in a financial institution.
2. Where a non-individual user or contracted institution is a domestic government agency, public school, state-owned enterprise, or a business or foundation, of which the representative is appointed by the government according to the law, the electronic payment institution may transfer the withdrawal or payment funds to a same-currency deposit account which is opened in a financial institution specified by the non-individual user or contracted institution.
3. Where a non-individual user or contracted institution is a branch under administration of the head office, the electronic payment institution may transfer the withdrawal or payment funds to the said head office’s same-currency deposit account which is opened in a financial institution.
4. An electronic payment institution may, pursuant to a trust contract signed by a user or a contracted institution as the trustor, transfer the withdrawal or payment funds to a same-currency deposit account which is opened in a financial institution specified by the trustor in accordance with the trust contract. |