ASIC has released a consultation paper (CP 310) seeking feedback on the proposed coverage of its review of the ePayments Code.
ASIC’s review will focus on testing the effectiveness of the following areas in the Code:
- complaints handling;
- unauthorised transactions;
- data reporting; and
- mistaken internet payments.
The review will also consider options for future-proofing the Code.
Recent developments in payments include mobile banking, digital wallets, the New Payments Platform (which is new infrastructure in Australia used to process fast payments), contactless payment technology, two-factor authentication, tokenisation, and biometrics as an alternative to the use of passcodes or PINs.
The current wording of the ePayments Code may not adequately cater for these developments, and this may have implications for the Code’s ongoing effectiveness and relevance.
ASIC will also consider the extent to which the Code’s protections should be available to small business consumers.
it is beyond the scope of this review to:
(a) convert the ePayments Code to a mandatory code of practice or to introduce a legislative foundation for the Code; or
(b) change the key aspects of the Code in a way that significantly changes the entities to whom the Code is relevant (i.e. the subscriber base).