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Retail Payment System Act 2022

Designated networks - Network standards for designated networks

20: Subject matter of network standards

You could also call this:

"Rules for Payment Systems"

Illustration for Retail Payment System Act 2022

A network standard is a set of rules for a designated network. You can think of a designated network like a system that helps people make payments. A network standard may deal with things like how information is shared. A network standard may also talk about pricing for payment services. This includes how much participants can charge for their services. You might see rules about how prices are shown to merchants. A network standard can also cover access to the network. This means it can say how someone can join the network or use its services. It can also require participants to give other participants access to the network. A network standard may also require participants to report any breaches of the rules to the Commission. The Commission is like a watchdog that makes sure everyone follows the rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS528151.

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19: Process for issuing network standards, or

"How new rules for payment systems are created and shared"

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21: Pecuniary penalty for contravention of network standard, or

"Paying a penalty for breaking network rules"

Part 2Designated networks
Network standards for designated networks

20Subject matter of network standards

  1. A network standard may deal with, or otherwise relate to, 1 or more of the following matters:

  2. the disclosure of information relating to payment services or the designated network, including requirements for information to be provided—
    1. by participants to all or any of merchants, consumers, the Commission, and the public; and
      1. by one class of participants to another:
      2. pricing for payment services, including—
        1. pricing principles and limits on fees (or components of fees) charged by all or any participants or classes of participants in a designated network:
          1. pricing method requirements, including requirements relating to pricing methodologies and how prices are expressed, and to pricing formats when prices are offered to merchants:
          2. access requirements for aspects of a designated network, including—
            1. how a person may become a participant of a network or gain access to network infrastructure or services, including requiring any class of participants to allow new participants to access all or certain aspects of the network (for example, to allow access for new acquirers to a network or to provide for new entrants or acquirers to access switch infrastructure or for providers of new payment products to use the retail payment network):
              1. how a participant may be required to provide access to network infrastructure or services to participants.

              2. A pricing standard may relate both to fees and to payments having an equivalent object or effect to fees.

              3. A network standard may require participants to give to the Commission reports relating to any contraventions of requirements imposed by or under this Act.

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