PayPal Australia has become one of the first major e-commerce brands to subscribe to the new ePayment code, which officially came into effect yesterday.
The code takes over from the Electronic Funds Transfer code (the EFT code), following an 18 month transition period, and provides a best practice consumer protection regime for electronic payments.
ASIC Commissioner Peter Kell said: “The ePayments code builds on the EFT Code and addresses emerging issues in the rapidly changing electronic payment market. Consumers who deal with subscribers to the ePayments code can be confident they will be protected if things go wrong.”
Changes to the code include a new regime to resolve mistaken internet banking payments, tailored requirements for low value products, (up to a maximum balance of $500); and plain English drafting that is product and technology neutral, making the code applicable to all consumer electronic payment products.
Jeff Clementz, MD of PayPal Australia, said: “PayPal Australia is proud to have worked closely with ASIC on the development of the new ePayments code and to be one of the first industry signatories”.
The code reflects a progressive approach to regulation aimed at promoting payments innovation alongside consumer protection.
“Our consumers are regularly accessing their digital wallet via a range of connected devices. This demonstrates how technology is driving rapid change in consumer behaviours in regards to payments. The new ePayments code is a dynamic code which acknowledges these technology advancements and demonstrates ASIC’s commitment to protecting consumers”, Clementz said.
“The code is an important tool in the regulation of electronic payment products in Australia. We will continue to push those who offer consumer electronic payment products to subscribe to the code,” Commissioner Kell said.