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Schedule 7 – MyDebit Payment Channel

SCHEDULE 7 (Only applicable to MyDebit Payment Channel)
 

The Merchant hereby acknowledges and agree that by entering into a contract/commercial agreement with RMS, the Merchant has undertaken the necessary risk assessment to mitigate any potential risks that may emerge in relation to the contract/commercial arrangement entered into with RMS. For the avoidance of doubt, the specific terms and conditions below shall be read together with the Agreement.  

 

Definitions
The following terms are defined for use in this Agreement, unless the context otherwise requires:

“Cardholder” Means a person who holds MyDebit card issued by an Issuer that maintains the accounts (i.e. saving/current) that could be accessed by such card.
“DMS” Means RMS settlement processes whereby funds collected from MyDebit transactions shall be credited to a Holding Account for settlement with Merchant.
“Issuer” Financial institution authorized by Bank Negara Malaysia (“BNM”) to issue MyDebit Cards.
“MyDebit” Means a domestic debit card scheme that allows MyDebit Cardholders to purchase goods/services and withdraw ccash at participating merchant’s outlets by debiting directly from the Cardholders’ nominated savings/current account.
“MyDebit Operator” Means the payment system operator for MyDebit service i.e. Payments Network Malaysia Sdn Bhd.
“Operational Procedure” Means the Operational Procedure for MyDebit which are prescribed and issued by MyDebit Operator and will include any variation, addition, amendment or modification made from time to time.
“MyDebit Brand” Means the brand, icon, logo and marks for MyDebit.
“MyDebit Logo” Means a symbol or wordmark created by Paynet to identify and promote the MyDebit brand.
“MyDebit Terminal” Means an information processing device through which MyDebit transaction messages are initiated and transmitted to the Acquirer and through which reply messages are received and transactions are completed.
“PayNet” Payments Network Malaysia Sdn Bhd.
“PIN Pad” Means an electronic device used in any physical card-based transaction to accept and encrypt Cardholders’ [ersonal identification number (PIN).
“RENTAS” Means a Real-time Electronic Transfer of Funds and Securities System that provides multi-currency real-time gross settlement system for interbank fund transfers, multi-currency debt securities settlement, and depository services for scriptless debt securities.
  1. MyDebit Service

           1.1. RMS is a participant of the MyDebit service and the Merchant is a registered Merchant under the MyDebit service.

            1.2. In consideration of the fees paid to RMS, RMS agrees to facilitate the participation of the Merchant in the MyDebit service in accordance with this Agreement.

            1.3. The Merchant hereby agree to observe all the minimum requirements in this Agreement as specified by the MyDebit Operator including any future revisions which will be communicated by RMS to the Merchant.

 

  1. Payment Type

           2.1. The Merchant shall support MyDebit transaction that enables cardholders to use their ATM cards to pay directly from their bank account via point of sale (“POS”) terminal and a dual interface which supports both contact and contactless transactions.

 

  1. Obligations of Merchant

          3.1. The Merchant shall, at all times, comply with the Consumer Protection Act 1999, as the Merchant is prohibited to engage in misleading and deceptive conduct, false misrepresentation, and unfair claims in selling their products or services.

          3.2. The Merchant shall not be involved or engaged in business activities that contravene the laws of Malaysia.

          3.3. The Merchant is prohibited from re-selling or acquiring any other sub-Merchant(s) into the MyDebit service or act as merchant aggregators for other Merchant(s), without the prior written consent of the My Debit Operator and RMS.

          3.4. The Merchants are not allowed to set a purchase limit.

          3.5. The Merchant shall ensure that it does not impose any surcharge on a transaction made using MyDebit.

          3.6. Merchant shall execute the Merchant’s ‘Opt-Out’ from Lowest Cost Routing Declaration which will be provided by RMS by furnishing all necessary information completely and accurately.

          3.7. To open a Merchant account for the purpose of the transfer of funds to the Merchant.

          3.8. Merchants are prohibited from retaining any MyDebit cards belonging to Cardholders.

          3.9. The Merchant shall not capture any of the MyDebit cards at their MyDebit Terminals or kiosks at any point of time. In the event that the MyDebit cards are captures due to technical reasons or any other reasons, the Merchant shall undertake to return the cards to their RMS for onward submission to the Issuer bank within 24 hours.

          3.10. The Merchant shall undertake all reasonable actions necessary to ensure that all MyDebit Terminals and PIN Pads operated at their premises are available for use by Cardholders during MyDebit switch operating hours and that the Terminals and PIN Pads are utilized and have complied with the requirements set into the Operational Procedure for MyDebit.

          3.11. The Merchants shall comply with the MyDebit Brand guidelines at all times.

          3.12. The Merchant shall prominently display MyDebit Logo and MyDebit service marks and to inform the public that MyDebit service is available at the Merchant’s premises and/or on all documentation issued and/or used in connection with the provision of the services in order to identify and promote MyDebit service.

          3.13. To assist the Issuer and/or RMS with any inquiry undertaken in respect of misuses of the MyDebit service.

          3.14. To accept and honor all MyDebit Cards when presented to Cardholders at any MyDebit Terminal displaying logo and provide the goods and services on the same terms and conditions as those under which it supplies goods and services to persons purchasing goods or services by means other than by the My Debit cards.

          3.15. To ensure confidentiality and security of Personal Identification Number (“PIN”) entered at the MyDebit Terminal.

          3.16. To ensure that each sales and purchase transaction is confirmed by the Cardholder in a manner applicable to the MyDebit Terminal.

          3.17. To operate the MyDebit Terminal in accordance with RMS’s direction and/or instruction.

          3.18. Not to misuse or tamper with the MyDebit Terminal in any way.

          3.19. To notify RMS of the MyDebit Terminal failure within two (2) Business Days after becoming aware of the failure of the MyDebit Terminal.

          3.20. The Merchant must not make any warranties nor representations in respect of goods or services supplied which may bind RMS, My Debit Operator, Issuer or any other participants in the MyDebit service.

          3.21. For the purpose of Clause 3.18 of Schedule 7, the Merchant will be liable for any claims, damages and expenses arising out of or caused to arise from misuse or unauthorized usage of the MyDebit Brand. In the event of such breach this Agreement shall be terminated accordingly. Upon termination, Clause 6.4 of Schedule 7 shall apply accordingly.

          3.22. The Merchant shall consent and allow RMS to disclose its information to MyDebit Operator, as may be reasonably required for the purpose of and in connection with providing the MyDebit service.

          3.23. The Merchant shall ensure that their customers are aware that card payments can be made via MyDebit.

          3.24. Clause 3.20 of Schedule 7 herein shall survive the termination of this Agreement. Termination does not affect either party’s rights accrued and obligations incurred before termination.

          3.25. The Merchant at all times have an obligation to protect the confidentiality, integrity and availability of Cardholders data and transaction information in accordance with applicable laws and regulations.

 

  1. Obligations of RMS

          4.1. RMS shall ensure that Merchants comply with all applicable requirements stipulated in the Operational Procedures for MyDebit and the Merchant Agreement.

          4.2. RMS shall ensure that Merchants will take reasonable actions necessary to ensure that all MyDebit Terminals and PIN Pads operating at their premises are available for use by Cardholders during MyDebit switch operating hours and that the MyDebit Terminals and PIN Pads are utilized and complies with the requirements set in MyDebit Operational Procedures of the MyDebit Operator.

          4.3. RMS shall provide the necessary training to Merchants on an on-going basis.

          4.4. RMS shall transparently disclose to Merchants the interchange rates of the debit card schemes and the true effective cost of the two priority network routing choices (either MyDebit Priority Routing or AID Priority Routing) and accurately provide all information necessary for the Merchant to make an informed decision on network routing.

          4.5. RMS shall execute the Merchant’s ‘Opt-Out’ from the Lowest Cost Routing Declaration available in the MyDebit Operational Procedure by furnishing all necessary information completely and accurately.

          4.6. RMS shall lodge the completed Merchant’s ‘Opt-Out’ from Lowest Cost Routing Declaration with MyDebit Operator at least seven (7) Business Days before the opt-out takes effect.

          4.7. RMS shall route the Merchant’s debit transactions to the network with the lowest interchange cost and MDR in the event a Merchant does not decide on the preferred debit network routing and obtains the appropriate consent from their Merchant to disclose the information provided by the Merchant.

          4.8. RMS shall complete and submit the ‘RMS’ Fair Pricing Declaration’ available in the MyDebit Operational Procedure on a quarterly basis, furnishing all necessary information completely and accurately. RMS shall submit the ‘RMS’ Fair Pricing Declaration’ to PayNet by 15 January, 15 April 15 July and 15 October of every year, attesting that fair prices have been quoted to Merchants in the preceding quarter.

          4.9. If there will be disruptions due to scheduled maintenance, RMS shall provide seven (7) Business Days advance notice to Merchants and MyDebit Operator, clearly specifying the duration and period of disruption. RMS shall be subsequently required to provide Merchants with sufficient targeted reminders closer to the scheduled maintenance to ensure that all Merchants are aware of the disruption.

          4.10. RMS shall inform Merchants when the system or equipment is not available for use or when there is a malfunction.

          4.11. RMS commits to processing MyDebit transactions within a reasonable time frame, ensuring prompt settlement for the Merchant.

          4.12. RMS commits to maintaining a rational level of uptime for their systems to ensure that merchants can process MyDebit transactions reliably without disruption.

          4.13. RMS commits to ensure compliance with relevant regulatory standards and requirements governing MyDebit transactions, thereby mitigating the risk of non-compliance penalties.

          4.14. RMS at all times have an obligation to protect the confidentiality, integrity and availability of Cardholders data and transaction information in accordance with applicable laws and regulations.

 

  1. Indemnity

           5.1. In the event RMS becomes insolvent, the Merchant hereby agrees to indemnify the MyDebit Operator from all claims, losses, damages, penalties, suits, costs and expenses (including reasonable legal fees) at all times.

 

  1. Suspension and Termination

Suspension

           6.1. RMS, as the case may be, reserves the right to suspend the participation of the Merchant in the MyDebit service by giving notice in writing specifying the suspension date and any conditions applicable to the suspension, under the following circumstances:

                    a. RMS have determined that the Merchant has inadequate operational controls or insufficient risk management processes, resulting in potential threats or risks to the stability, integrity, safety, security and efficiency of the MyDebit service;

                    b. The Merchant is suspected on reasonable grounds that it is facilitating, involved in, has committed or will commit fraudulent act (s) in connection with the MyDebit service;

                    c. The RMS has received complaints from other Merchant (s), other RMS(s), Issuer or Cardholder that the Merchant is engaging in fraudulent activity in connection with the MyDebit service; or

                    d. The Merchant has been suspended from the MyDebit service by other RMS(s) due to breach of provisions of this Agreement or the terms and conditions stipulated in the, or any applicable rules, guidelines, regulations, circular or law

          6.2. Upon suspension of the Merchant in the MyDebit service:

                    a. The services provided under the MyDebit service will be suspended immediately;

                    b. The Merchant will no longer be able to offer MyDebit service;

                    c. The Merchant will stop accepting payments from RMS Bank(s)/MyDebit Operator (through DMS);

                    d. The Merchant must cease all promotional and advertising that is related or can be perceived to be related to MyDebit service;

                    e. The Merchant must remove all MyDebit Brand from the Merchant’s marketing collaterals, channels and website; and

                     f. The Merchant must take all reasonable steps to comply with any directions of the RMS to minimize the impact on Cardholder of the suspension.

 

Termination

             6.3. RMS, as the case may be, reserves the right to terminate the services provided under this Agreement or the MyDebit service under the following circumstances, which includes, but not limited to:

                      a. This Agreement between the Merchant and the RMS is terminated or expired;

                      b. RMS has determined that the Merchant has inadequate operational controls or insufficient risk management processes resulting in potential threats to the stability, integrity, safety and efficiency of the MyDebit service; or

                      c. RMS’s membership in the MyDebit service or RENTAS is terminated or suspended and the Merchant has not appointed a replacement RMS;

             6.4. Upon termination if this Agreement, the Merchant must cease all promotional and advertising that is related or can be perceived to be related to the MyDebit service.

             6.5. Termination of the Merchant in the MyDebit service shall not extinguish any outstanding right or liability arising under this Agreement or the terms in the Operational Procedures for MyDebit which is applicable to the Merchant as reflected in this Agreement.

 

  1. Advertisement and Use of Logo

           7.1. The MyDebit Operator owns all rights, titles and interest in the MyDebit Brand and the MyDebit Operator and/or RMS may specify and may at any time amend the requirements relating to the use and/or display of the MyDebit Brand.

            7.2. The Merchant shall comply with the requirements, process and/or guidelines prescribed by the MyDebit Operator based on the MyDebit Brand Guidelines.

            7.3. The Merchant must use the appropriate denotation or legend of trademark registration or ownership in connection with MyDebit Brand, as required or consented to by the MyDebit Operator and/or RMS.

           7.4. The Merchant shall only use the MyDebit Brand for the sole purpose of publicizing, indicating and advertising that the Merchant accepts payment requests through the MyDebit service.

           7.5. The MyDebit Operator through RMS, may at any time, in its absolute discretion, direct a Merchant to cease using the MyDebit Brand where such use is in breach of this Agreement or the terms in the Operational Procedure for MyDebit which is applicable to the Merchant as stipulated in this Agreement.

           7.6. The Merchant must not use the MyDebit Brand in such a way to create an impression that the goods or services offered by the Merchant are sponsored, produced, offered or sold by the owner of the MyDebit Brand. The Merchant must not adopt “MyDebit” or any other MyDebit Brand as any part of the name of its business or apply it to any goods or services offered for sale.

           7.7. The Merchant must immediately on becoming aware of any infringement or potential infringement of the MyDebit Brand, notify RMS.

 

  1. Cardholder’s Disputes/Claim

          8.1. If any dispute between the Cardholders and Merchants arises, the process used to resolve the disagreements among Cardholders and Merchants shall be based on the debit card policy document by Bank Negara Malaysia.

          8.2. The Merchant shall furnish information and assist RMS to facilitate investigations related to Cardholder’s disputed transactions, fraudulent transactions and requests for refunds in accordance with the following process and timelines.

          8.3. If a valid request to recover funds was received by the Merchant within sixty (60) days of the Cardholder’s MyDebit payment, the Merchant shall address the Cardholder’s disputes/claims to the Cardholder’s satisfaction.

          8.4. The Cardholder may submit request for refund to the Merchant after MyDebit payment has been made for the following reasons:

                   a. Goods or services purchased were not provided or rendered due to the Merchant’s non-performance or insolvency;

                   b. Cardholder’s bank account was erroneously debited multiple times for a single purchase or charged with incorrect amount by the Merchant.

          8.5. Upon receiving a request for refund, the Merchant shall respond to all requests for refunds within seven (7) Business Days timeframe.

          8.6. The Merchant may provide concrete evidence to contest the claim. Evidence may include proof of delivery, certification from suppliers on the authenticity of goods, or other documentation to demonstrate the Merchant’s performance of its obligations. If the Merchant is unable to furnish evidence within the timeframe specified in Clause 8.3.of Schedule 7 or the evidence does not conclusively refute the Cardholder’s refund claim, the Merchant is required to refund the purchase proceeds to the Cardholder within three (3) Business Days. Evidence furnished by a Merchant to refute a refund claim is deemed to be sufficient if both the Issuer bank and RMS is fully satisfied that the Merchant has adequately demonstrated that the Merchant has performed its obligations.

          8.7. If the Merchant is not able to adequately refute a refund claim in accordance with Clause 8.6 of Schedule 7, RMS shall have the right to debit any of the Merchant’s account (s) maintained with RMS for the recovery of the disputed sum, either entirely or partially.

          8.8. Providing timely resolution for customer complaints encountered during MyDebit transactions in accordance with the Operational Procedures for MyDebit.

 

  1. Personal Data Protection

           9.1. The Merchant consents to the provision and use of information supplied to the MyDebit Operator and/or RMS in connection with the MyDebit service. The Merchant further agrees to notify the MyDebit Operator and/or RMS in writing of any update to any such information as soon as it is aware that the information so supplied in connection with the MyDebit service has become outdated.

           9.2. The Merchant agrees to comply with the Personal Data Protection Act 2010 of which it is bound and shall not do any act that will cause RMS, Issuer and MyDebit Operator to breach any personal data protection laws.