Cooling-off period asked for large online transfers to curb fraud

Cooling-off period asked for large online transfers to curb fraud

The move aimed to enhance customer protection, reduce fraud risks in payment.

The SBV asked commercial banks and foreign bank branches to offer customers the option to set transaction threshold and waiting periods before online transfers are executed. — VNA/VNS Photo

The State Bank of Vietnam (SBV) has ordered commercial banks to introduce a cooling-off period for certain, large online money transfers to give customers more time to reconsider or cancel transactions if they detect unusual signs.

The move aimed to enhance customer protection and reduce fraud risks.

The SBV asked commercial banks and foreign bank branches to offer customers the option to set transaction threshold and waiting periods before online transfers are executed.

The measure applies to individual customers using internet and mobile banking services. The waiting period will run from the time a customer confirms a transaction until the money is transferred to the beneficiary's account.

The mechanism will apply to domestic transfers at or above a customer-registered transaction threshold when the beneficiary account has not previously received, from that customer, a transfer equal to or above the same threshold during the preceding 12 months.

Customers can choose their own transaction threshold and waiting period. The minimum waiting period is 24 hours.

If customers do not register for the service, banks will automatically apply a threshold of VNĐ400 million ($15,200) per transaction, together with a minimum 24-hour waiting period.

For transactions placed on hold, banks must verify customer information and support the cancellation or suspension of the transfer if customers suspect fraud or no longer wish to make the payment.

Banks and other credit institutions must also clearly disclose the terms and conditions of the service, including its scope, eligible customers, transaction thresholds and the rights and obligations of the parties involved.

Before processing transactions subject to the waiting period, banks must display clear notifications and obtain confirmation that customers have read, understood and accepted the relevant rules.

Banks must retain complete transaction logs for tracing, handling complaints and disputes, and providing information at the request of competent authorities.

The SBV has asked banks and foreign bank branches to prepare detailed implementation plans to offer the service by March 1, 2027.

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