The Australian Securities and Investments Commission (ASIC) has issued a revised Electronic Funds Transfer (EFT) Code of Conduct, which became effective on 1 April 2002.

The implication for CPS members, is the introduction of new terms and conditions for Redicards, Visa Cards and BPAY. These new conditions also became effective on 1 April 2002 and are available for viewing and/or printing by clicking below

• Revised Redicard Conditions of Use (pdf 360kb)
• Revised Visa Card Conditions of Use (pdf 360kb)
• Revised CPS Web-Link Internet Banking and BPAY Terms and Conditions (pdf 90kb)

If you would like to view a copy of the full text of the new EFT Code, please click here

In summary form, the main implications for CPS members, of the new EFT Code of Conduct are as follows.

Redicard

1. Changes have been made to the liabilities of cardholders where it is unclear whether the cardholder contributed to the loss. Where a PIN was used to perform an unauthorised EFT transaction and it is unclear whether the member is liable for the unauthorised EFT transaction because of an unreasonable delay in notification to the card hotline that the card was misused, lost or stolen through fraud, failure to adhere to security of the PIN or extreme carelessness then the member's liability has been increased to the lesser of:
   1. $150 (from $50)
   2. the balance of the linked account; or
   3. the actual loss at the time of notification
2. Where an EFT terminal accepted the EFT transaction but failed to complete the transaction, the member will not be held liable.
3. Clarification regarding defined terms and conditions of use as well as PIN security.
4. New provisions enabling cancellation of the Redicard.
5. Introduction of a dispute resolution process.
6. Introduction of privacy provisions.

Visa Card

1. Where a PIN was used to perform an unauthorised EFT transaction and it is unclear whether the member is liable for the unauthorised EFT transaction because of an unreasonable delay in notification to the card hotline that the card was misused, lost or stolen or through fraud, failure to adhere to security of the PIN or extreme carelessness, then the member's liability has been increased to the lesser of:
   1. $150 (from $50)
   2. the balance of the linked account; or
   3. the actual loss at the time of notification
2. Clarification regarding defined terms used in the conditions of use as well as PIN security.
3. Clarification regarding the allocation of overseas conversion fee of 2% charges by Visa International.
4. New provisions enabling cancellation of the Visa Card.
5. Introduction of a dispute resolution process.
6. Introduction of privacy provisions.

BPAY

1. Changes have been made to the liabilities of members where it is unclear whether the member contributed to the loss. Where an access method is used to perform an unauthorised BPAY transaction and it is unclear whether the member is liable for the unauthorised transaction because of an unreasonable delay in notifying that the access method has been misused or that the access method or code has been lost or stolen or through fraud, failure to adhere to security of the access method or extreme carelessness, then the member's liability has been increased to the lesser of:
   1. $150 (from $50)
   2. the balance of the linked account; or
   3. the actual loss at the time of notification.
2. member's liability to indemnify the Credit Union if the member breached security obligations or acted negligently or fraudulently.
3. Clarification regarding defined terms and conditions used in the conditions of use as well as access methods.
4. Clarification regarding the use of an access method when making a BPAY transaction.
5. Removal of liability of members for instructions received by the BPAY system but not completed.
6. Introduction of a dispute resolution process.
7. Clarification regarding cancellation of an access method.
8. Introduction of privacy provisions

If you have any queries on the above summary information about the new EFT Code of Conduct, please phone us on 6286 0555, or email us at cps@cpsact.com.au