Regulatory Regime for Retail Payment Systems

The Monetary Authority (MA) is responsible for designating important RPSs and overseeing their operation pursuant to the Payment Systems and Stored Value Facilities Ordinance (PSSVFO). The PSSVFO defines an RPS as a system or arrangement for the transfer, clearing or settlement of payment obligations relating to retail activities (whether the activities take place in Hong Kong or elsewhere), principally by individuals, that involve purchases or payments; and includes related instruments and procedures.

The PSSVFO stipulates criteria and relevant factors based on which the MA may determine whether or not an RPS should be designated, and also requirements that the designated RPSs are required to comply with. The Explanatory Note on Designation of Retail Payment Systems explains the regulatory regime in further detail. The Guideline on Oversight of Designated Retail Payment Systems is issued by the MA pursuant to section 54(1A)(a) of the PSSVFO to explain the MA’s interpretation of some of the oversight requirements under the PSSVFO relating to designated RPSs so as to assist system operators or settlement institutions of designated RPSs in understanding and complying with such requirements. To assist system operators and settlement institutions of designated RPSs in better understanding the standards by which the principles set out in the aforesaid Guideline should be applied, the MA issues the Additional Guidance on Oversight of Designated Retail Payment Systems to provide further guidance in respect of specific sections or paragraphs of the Guideline as and when necessary. The MA is empowered to impose sanctions under section 33Q of the PSSVFO. The Guideline on Exercising Power to Order a Pecuniary Penalty sets out the manner in which the power to order a pecuniary penalty under section 33Q(2)(a) of the PSSVFO is to be exercised. The Guidance Note on Cooperation with the HKMA in Investigations and Enforcement Proceedings provides an overview of how the MA considers and recognises cooperation in investigations and enforcement proceedings under the PSSVFO and other ordinances.

To date, the MA has designated the RPSs operated by Visa, Mastercard, UnionPay International, American Express, Joint Electronic Teller Services Limited (JETCO), and EPS Company (Hong Kong) Limited (EPSCO) for the processing of payment transactions involving participants in Hong Kong under section 4(1) of the PSSVFO (the designated RPSs). The key function of the MA under the PSSVFO in respect of overseeing the designated RPSs is to ensure that they have fulfilled their obligations to conduct the operations of the systems in a safe and efficient manner to minimise the likelihood of any disruption to the functioning of the systems.

If you have any questions or you would like to lodge a complaint regarding the regulatory regime for RPSs under the PSSVFO, you may contact us through the following channels:

 
If you would like to find out more about the designated RPSs or have issues or enquiries to raise with them, you may refer to the following hyperlinks to the system operators of the designated RPSs which also contain their contact information: