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These definitions explain the meaning of words and terms used in the Code. They are not precise legal or technical definitions.
Authorized Agents -
Agents authorized by an institution to deal with customers to provide services on its behalf in relation to the provision of banking services, when acting in their capacity as agents for an institution.
Bankers’ References -
A banker’s reference is an opinion about a particular customer’s ability to enter into or repay a financial commitment. It is given by an institution, to an enquirer, with the prescribed consent of the customer concerned.
Typically, the reference will cover information confirming that an account is held and how long for. It indicates the customer’s financial position but is not intended to be conclusive proof of the customer’s position.
Basic Banking Services -
The opening, maintenance and operation of accounts which provide basic banking services, such as deposit, withdrawal and transfer of money.
Cards -
A general term for any card (whether physical or virtual) which may be used to pay for goods and services or to withdraw cash. For the purpose of this Code, it excludes stored value cards (see definition of Stored Value Cards below).
Common examples are -
Credit card - a card which allows cardholders to buy on credit and to obtain cash advances. Cardholders receive regular statements and may pay the balance in full, or in part usually subject to a certain minimum.
Interest is payable on outstanding balances.
Debit card (including an EPS card) - a card, operating as a substitute for a cheque, that can be used to obtain cash or make a payment at a point of sale. The cardholder’s account is debited for such a transaction without deferment of payment.
Cash card (ATM card) - a card used to obtain cash and other services from an ATM.
Credit Reference Agencies -
Any data user who carries on a business of compiling and disseminating personal information, of a factual nature, about the credit history of individuals, whether or not that business is the role or principal activity of that data user.
Cross-boundary Payments -
Payments in Hong Kong dollars or a foreign currency between Hong Kong and a place outside Hong Kong.
Customer -
A private individual who -
(a) maintains an account in Hong Kong (including a joint account with another private individual or an account held as an executor or trustee, but excluding the accounts of sole traders, partnerships, companies, clubs and societies) with, or who receives other services from, an institution; or
(b) acts as guarantor or provider of third party security (whether or not the guarantor or provider of third party security is a customer of the institution) for a borrower who is an individual or otherwise.
Day -
Day means calendar day if not otherwise specified.
Electronic Banking (e-banking) Services -
Banking services, delivered over the internet, wireless network, ATMs, fixed telephone network or other electronic terminals or devices. Accordingly, e-banking services include -
(a) Internet banking services, which refer to financial services delivered over the Internet to customers’
devices including personal computers and mobile devices;
(b) contactless mobile payments which refer to the use of contactless or wireless technology to transmit payment transaction information between the customer’s mobile device and the payee;
(c) financial services delivered through self-service terminals which refer to interactive terminals (including ATMs, cash deposit machines (CDMs), cheque deposit machines and virtual teller machines) which are used by institutions to provide financial services; and
(d) phone banking services which refer to financial services provided through telephone line or mobile telecommunication network, covering both manned and Interactive Voice Response (IVR) phone banking services. For the purpose of this Code, phone banking does not include the provision of financial services for the purpose of sales promotion or activity notification/call-back confirmation, or by a designated staff member who had been assigned to provide continued and dedicated service to the relevant customer (e.g. a relationship manager).
Guarantee -
An undertaking given by a person called the guarantor promising to pay the debts of another person if that other person fails to do so.
Institutions -
Authorized institutions authorized under the Banking Ordinance (Cap. 155). These comprise licensed banks, restricted licence banks and deposit-taking companies.
In writing or in written form -
Information can be provided in a non-paper based format or in printed form except where specifically indicated that it must be in printed form. Institutions may deliver information to customers in a non-paper based format provided that the institutions have so notified the customers in advance explicitly and the customers do not object to it.
Out of date (stale) Cheque -
A cheque which cannot be paid because its date is too old or “stale”, normally more than 6 months old.
Personal Identification Numbers (PINs) -
Confidential numbers provided on a strictly confidential basis by card issuers to cardholders. Use of this number by the customer will allow the card to be used either to withdraw cash from an ATM or to authorize payment for goods or services in retail or other outlets, by means of a special terminal device.
Post-dated Cheque -
A cheque which cannot be paid because its date is some time in the future.
Prescribed Consent -
Express consent of a customer given voluntarily.
Promotional Material -
Any literature or information which is designed to help sell a product or service to a customer. This does not include information relating to service enhancements and changes to customers’ existing accounts which need to be sent to the customers to meet legislative and regulative requirements or which may be sent where it is in the interest of customers.
Related Companies -
This refers to an institution’s subsidiary, holding company or a subsidiary of the holding company.
Security -
A word used to describe the mortgaging or charging of assets, such as (but not limited to) properties, life policies and shares to institutions as support for loans granted to customers. If the loans are not repaid the institution’s position is “secured” which means that it can sell the assets to meet the amount outstanding on the loan.
Stored Value Cards (or Devices) (SVCs) -
A card or device on which data may be stored in electronic, magnetic or optical form and for or in relation to which a person pays a sum of money to the issuer of the card in exchange for the storage of that value in the card and an undertaking by the issuer that on the production of the card, the issuer or any third party will supply goods or services.
Third Party Security -
Security provided by a person who is not the borrower.