WHEN WILL BLOCKADE OF PAYMENT ACCOUNT OCCUR?

Payment accounts are blocked in certain cases to protect the interests of relevant parties and ensure compliance with the law. Common cases include requests from competent state agencies, suspected fraudulent transactions, civil disputes, wrong money transfers or non-compliance with financial obligations. Understanding the conditions of blockade of payment account helps account holders be more proactive in managing assets and performing safe transactions.

What is the blockade of a payment account?

The blockade of payment account can be understood as a temporary measure to block transactions on a bank account, aimed at safeguarding the legitimate rights of the concerned parties or enforcing the decisions of competent authorities. When an account is blocked, the account holder is unable to conduct transactions such as withdrawing money, transferring funds, or making payments from that account.

A payment account can be partially or fully blocked, depending on the specific circumstances.

In what cases is a payment account blocked?

Article 11 of Decree 52/2024/ND-CP, blockade of payment account occurs in the following cases:

– When there are prior agreements between owners of payment accounts and payment service providers or requests from owners of payment accounts;

– When there are decisions or written requests from competent authorities as prescribed by the law;

– When payment service providers detect mistakes or errors when writing “Yes” into payment accounts of clients or carry out refund orders of money transfer service providers due to mistakes and errors compared to payment orders of transferring parties after writing “Yes” into payment accounts of clients. The frozen amount on a payment account shall not exceed the mistaken or erroneous amount;

– When there are requests for the freeze from one of the owners of a general payment account, excluding cases where there are prior written agreements between the payment service provider and the owners of such a general payment account.

When will the blockade of payment account be terminated?

The termination of blockade of payment account shall occur when:

– There are written agreements between owners of payment accounts and payment service providers or requests from owners of payment accounts;

– There are decisions to terminate the freeze of competent authorities as prescribed by the law;

– The mistakes and errors in money transfer payment are processed;

– There are requests for the termination of the blockade from all of the owners of a joint payment account or prior written agreements between the payment service provider and owners of such a joint payment account.

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