Submission - Joint response to the Review of the Electronic Funds Transfer Code of Conduct (2008)

We propose to tailor the requirements for transactions performed using newer electronic payment products with the following features:

(a) the product issuer is not able to cancel the product if it is lost or stolen;

(b) there is no electronic authentication mechanism to safeguard consumers against unauthorised transactions (e.g. a PIN or electronic signature is not required); and

(c) the maximum value that can be held on the product at one time is $100 or less.

The general requirements under the EFT Code would not apply to transactions using these products. For example, the requirement to give periodic statements and the rules allocating liability for unauthorized transactions would not apply. Table 4 summarises the tailored requirements that would apply under our proposal.