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Provisions Related to the Rule that a Financial Institution Shall Acquire A Cardholoder’s Consent on the Terms of Each Function When Issuing a Combo Card, Reissuing a Card or Upgrading a Chip Card.
Issuing Agency: Financial Supervisory Commission, Executive Yuan
Date of Issue: January 12, 2007
Ref. No.: Jin-Kuan-Yin-(4)-Zi-09640000050
Subject: With regard to the public’s recent proposal on the case that some card issuing intuitions issued to cardholders cards with other functions accessorized without obtaining the consent of the cardholders, when they handled reissuance of cards or upgrade to chip cards, kindly forward notifications to all financial institutions that they shall handle card issuing businesses pursuant to the points as explained, and acknowledge receipt of this letter.
Explanation:
1. Owing to that financial functions of stored-value cards, ATM cards, cash cards and debit cards do not fall within the business scope of credit card；the terms of these functions agreed by cardholders to-be, and rights and obligations of cardholders are different from the terms provided by original credit card agreements, Article 18 of the “Regulations Governing Institutions Engaging In Credit Card Business” does not apply to the situation that when a financial institution adds the financial functions of non-credit card business scope or other non-financial functions to a credit card.
2. In order to protect rights and benefits of consumers and make sound development of card business, when issuing a combo card (including the combination of the financial functions of a ATM card, a credit card, a cash card, a debit card and stored-value card, and other non-financial functions), each financial institution must acquire a written consent for the terms on each function of the card from a cardholder in advance. In the same way, when each financial institution handles reissuance of cards or upgrade of chip cards, which other functions are added to, it must provide cardholders a choice to keep the functions of the original card, and must not compel them to receive a multi-functional card.
To (The Original): The Bankers Association of the Republic of China (kindly forward a notification to each of the member institutions, including foreign bank branches in Taiwan and card issuing institutions.)
To (Copy): Cathay United Commercial Bank Co., Ltd.; Taishin International Bank Co., Ltd.; Chinatrust Commercial Bank, Corp.; Taipei Fubon Commercial Bank, Co., Ltd.; Consumer Protection Commission, Executive Yuan (Taiwan); the National Federation of Credit Cooperatives R.O.C. (kindly forward a notification to each member institution); Financial Examination Bureau, Financial Supervisory Commission, Executive Yuan, R.O.C. |