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Prepaid System

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Prepaid Payment Systems A Discussion Paper By

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  Prepaid Payment Systems: Global Business and Regulatory Environment Most of the Prepaid Payment Systems can be classified as follows:   Prepaid Cards Accounts/Wallet/Purse Purse   Internet Accounts/Wallet/   Mobile Accounts/Wallet/ Accounts/Wallet/Purse Purse   Remittance Cards (Domestic or International) •



• •

These products can be open or close ended or hybrid of two as classified below: New Payments Systems

Open-ended

Close-ended

Semi-Open/Cl Semi-Open/Close ose ended

Bank Prepaid Cards with ATM withdrawal domestic

Limited Usage prepaid cards only for payments, without

Prepaid Cards like No Frills Account Cards for

as well as International International

Cash withdrawal

branchless banking with KYC and prespecified limits

Internet Accounts/ Wallets/ Purse

Internet Bank Accounts, Internet Virtual Accounts with Cash Withdrawal across the globe

Internet Accounts / Wallets/Purse for specific usages with no cash withdrawal

Internet Accounts / Wallets/Purse for specific usages with cash withdrawal in to specified bank accounts etc.

Mobile Accounts/ Wallets/ Purse

Mobile Banking Account with all features of traditional banking and cash

Mobile Accounts / Wallets/Purse for specific usages with no cash withdrawal

Mobile Accounts / Wallets/Purse for specific usages with cash withdrawal in to specified bank accounts etc.

Remittance

Across the globe; no limits

Pure Domestic

Domestic or Internation International al but with specified value for specific transaction and total during the year

Prepaid Cards

Prepaid Cards All prepaid programs operate on the same core premise: a positive balance is loaded into an account associated with a card and drawn down through purchase activity (the value is not literally loaded ‘on the card’ but is reflected into an account on provider’s server). Prepaid programs are powerful solutions for facilitating access to and spending one’s money with greater security and efficiency than cash or cheques. The institutions that issue the specific prepaid products develop the detailed features including maximum and minimum value limits, fees and terms of use.

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  Prepaid programs can be open-loop or closed-loop:

−  In an open-loop program,  cards are accepted and processed across the globe at any MasterCard / Visa or similar merchants across the globe besides these cards can also be used to withdraw the money from the card using ATMs −  In a closed-loop program,  acceptance is limited to specific geographic locations, generally domestic. In some cases the card may be used by only a specific merchant, merchants’ chain within a geographic area and at best immediate related merchant group. An example is a gift card that is issued by merchants for use only in their store(s); calling cards, prepaid mobile cards for airtime top and value added services would fall into similar category. −  In hybrid “semi-closed” programs, a prepaid card may be accepted by a wider range of merchants, such as within a specific shopping mall or across category of merchants like online, mobile, voice for pre specified payment usage. Prepaid cards can be reloadable or non-reloadable:

−  Reloadable Cards offer the cardholder the ability to replenish the value on the card as needs arise; − Non-reloadable or single use cards are used until the balance is drawn down to zero and then discarded. Prepaid Cards can be used in a variety of ways: Transit Pass; Gift giving; Voucher replacement; Reimbursement to employees; Business travel and expense management; ePayments (payment on internet/mobile/phone); Personal spending cards; Payroll and employee incentives payment; Promotions Scheme; Insurance claims settlement; Unbanked financial service; Limited Value Remittance; Young adult (age 16 and older) controlled spending.

Prepaid cards look and function like a credit card at the point-of-sale or on Payment Gateway on Internet, Mobile or Phone. Merchants handle the card just as they would handle a credit card. Most of the prepaid cards carry the same security protection features as other Credit/debit cards.

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  Prepaid Types can also be defined as follows:   Close Loop (B2B: Channel Collection) (B2C: Gift, Travel, ePayments Account; Single purpose one time use like prepaid mobile, calling cards etc.)   Open Loop (B2C: e-money related products like multipurpose reloadable card with redemption, ATM, Remittance features etc.)   Other Hybrids: (Payroll, Transit, Government Disbursements, insurance)







Following are some of the key information shared by International Prepaid Card Forum on Prepaid Card Industry:

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Prepaid Cards are issued under two models i.e. The Bank Led Model and Non-Bank Led Model. The Bank Led Model  where the cards are issued by Bank, but distributed through a retail agent through specific program manager (“Agent Network”). Under this model, an Agent Network, instead of a bank branch completes the formalities of acquiring the customer. Any customer stored funds and the debit/credit are held and controlled by a bank. The agent is allowed to participate in funds in and funds out on behalf of the bank. Most of these cards are open loop cards with features like ATM withdrawal etc.

The Non-bank Led Model  where the cards are issued by independent Payment Service Provider through its network of the retail agents. The Agent Network completes the

formalities of acquiring theMost customer. Funds debit/credit are or responsibility ofwith the Payment Service Provider. of theseThe cards are Close Loop cards Hybrid Cards specific services like payments, transit, insurance, gift, remittance etc. Banks are generally used for Treasury Management in some cases.

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  Following is the summary of the study of various countries status for Prepaid Card Payment systems and their Regulatory status in summary form; country wise specific details are added as Annexure 1: Prepaid Payments Systems and Regulatory Status in Various Countries  Country

Key Existing Relevant Regulation

Australia

Guidelines on Authorisation of Providers of Purchased Payment Facilities (by Australian Prudential Regulation Authority)

Brazil

No direct regulation

China

No clear regulation specific to payments

Hong Kong

Hong Kong Joint Financial Investigations Investigatio ns Unit (Remittance Business)

Kenya

Not directly regulated by specific payments related regulation

Malaysia

Directly Regulated by the Central Bank

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Regulation under implementa tion (?)

Bank Led Models

Non-bank led Models

Paymate, PayPal, Bpay

Mpayment of Visa

PBOC working on implementat ion of PSO regulations covering payments (non-bank model)

PayPal, AliPay, 99Bill, QQ

Non-bank Agent Network status

Key Products category

Western Union

Payments, remittance, mobile, card based, stored value

Agent based simplified bank account

Payments; Remittance;

UMPay (mobile)

IC Cards for transit, online payments, online escrow, mobile payments, Utility prepaid cards, emoney related products; Gift Cards

Octopus, PayPal, Alipay

Remittances, stored value, card based, online payments

Wagepoint

M-Pesa by Safaricom

Remittance; other payments

Maybank

PayPal, Malaysia Online, Tunemoney

E-money, electronic payments, stored value, remittances

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  Regulations under implementat ion for emoney and payments

Pakistan

Philippines

Not directly regulated by Central Bank. Regulated through Seven Member Board

Russia

Not directly regulated

Singapore

Regulated directly by Central Bank under Stored Value Funds Regulation

South Africa

Initial focus on bank led model

Experiment s on nonbank led models as well

Smart Money

Gcash

Telco led

Payment; Remittance; mobile related VAS

Webmoney Maybank

Ezlink, PayPal

Mazansi Account

Wizzit; MTN Mobile Money; Net1

Tanzania

Directly Regulated by the Central Bank

Thailand

Regulated by Central Bank with specific Act and Guidelines

USA

Brief summary: Annexure Country Wise Regulations in CD

Card based, internet based, mobile payments

Paysbuy, The Smart Card, Payment Solutions, Advanced Mpay, True Money Co

Online payments, stored value, mobile payments

Most of the developed countrie countriess where the regulations are being provided for the Payments Systems have been on the basis of the Risk. These possible risk categories have also been defined as Open Payment Systems, Closed Payment Systems and Semi Open/Close Systems. These systems have been classified based on risk parameters like Identification, Value Limits, Geography, Funding in, Funding out, Usage Limits, Currency Denominatio Denomination. n.

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Risk Parameters

Open-ended

Close-ended

Semi-Open/Close Semi-Open/Cl ose ended

Identity available in form of KYC Specified limit

Basic KYC available directly or indirectly Limits May or may not be specified, but for specified usages May have Geographic Details but for specific usages within Geographic boundaries specified Pre specified and Bank instruments Possible but with additional formalities and for specified purposes May or may not be specified but for specific usage only

Identification

Anonymous

Value Limits

Generally no limit

Geography

International International Transactions

Clear Geographic usage mostly pure Domestic

Funding-in Options

All options including cash

Funding-outt Options Funding-ou

Globally anywhere in all forms including ATM Cash withdrawals No Limits

Primarily bank accounts or bank instruments Not possible or only in bank account

Usage Limits

Currency Denomination

Local currency but highly liquid like USD and easily convertible in other currencies

Prefixed annual, transaction and periodic limits Only Local currency non liquid and non convertible

Local Currency but strong currency like USD, Euro

Level I: Basic Registration and Information for the Central Banks to have direct access on the growth and information which may be required from time to time in their function as Monetary Authority. Such regulation is primary for the Payment Systems which are low risk and primary close ended systems. Level II:  At Level II certain Payment Systems may be regulated based on the different payment instrument and services they deliver in their respective country and they may have different requirement for different payment systems for different instrument they run.

Some of identity them mayrelated requireregulation specific licensing subject to certain terms andofconditions, some specific like KYC, Certain limits on value transactions or reporting in case of transactions above certain specified values. These primarily are Hybrid Payments System. Level III:  Open Loop Prepaid Payment Systems which have elements of ‘Systemically Important Systems’ as specified by CSPP may be regulated at Level III which may be more close to current banking system compliances, however while regulating such payments systems only specific services and products that qualify as nature of ‘Systemically Important’ should be regulated as Level III and other services which are not of the same risk or criticality should be regulated at appropriate level.

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  Countries like Singapore, Australia, and whole EU region where New Payment systems are very popular have provide adequate detailed guidelines to differentiate and regulate the Payment Systems based on their ‘Systemically Important’ nature and ‘Possible Risks’. Various studies conducted by International bodies on Prepaid Payments Systems both Bank Led or Nonbank Led through Agent Network has been found successful and some of the key observations are as follows:   Prepaid Payment Systems can dramatically reduce the cost of delivering financial services to poor people and the unbanked.   Prepaid Payment Systems are used mainly to facilitate small payments or to pay bills, and not for savings or credit thus reducing possible risks drastically.   Poor, Unbanked and Underserved people have begun using Prepaid Cards and similar systems as an alternative to banking for financial services mainly in programs Led by Bank, including in countries like India.







or Nonbanks view agent networks as key to achieving their business strategy and   Banks access to consumers in Poor, Unbanked and Underserv Underserved ed Category. (Retail Chains, Cyber Café, Post Offices)   Prepaid Payment Systems provide mechanisms to identify the funds owner more effectively.   Prepaid Payment Systems Track the utilization, frequency etc providing BETTER END USE Monitoring, with audit trail to detect money laundering and any such suspicious activity.   Prepaid Payment Systems Offer Regulators an opportunity to estimate the total CASH being used for an END USE- something which cannot be done with CASH to CASH.   E-commerce and M-commerce industry may only be INCLUSIVE if supported with Prepaid Payment Systems. Banking services penetration today is far lower than cellular services and failure to provide for a non-bank option will restrict the ability for the underserved











to in emerging on participate banking services as well.payment services. Soon, DTH, etc will exceed the penetration   Prepaid Payment Systems can help individuals build up a credit or commerce history to enable FINANCIAL institutions look into appropriate solutions for them.



Payment Systems Regulations in most of the countries are at evolution stage across the globe with exception to countries like Singapore, Australia and European Union where such Prepaid Payment Systems are regulated by well developed matured laws and where most of the products are well matured and accepted. Like Ezylink in Singapore, Oyester in UK. Most developing countries are in process of putting together a regulatory framework for Payments and Settlement Systems, Emoney, Mobile Banking, and Information Technology related laws. These are some of the basic framework for new business models and payments

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  systems. Most of the countries where the regulations are specified in form of Act, Guidelines and Guidance following matters are covered by such Regulations/Guidelin Regulations/Guidelines: es:   Applicability of the Laws/Regulation o  Specific players, systems who are covered by the Laws o  Specific categories which are exempt or conditions for exemptions o  Type of regulation based on size and scale of the payment system like small money license in EU for eMoney issuers who issue eMoney products up to certain values.   Authorisation for existing or new players o  Authorization process and applicability  o  Process for Existing and New Players    Conditions for Authorisations o  Power and specific additional conditions that may be asked to be complied by regulator at the time of Authorisation 









Requirements   Reporting o  Systems that are required to Report  o  Systems that may not need Authorisation but may still need to Report on matters like suspicious transactions and general payments system providers’ regular financials and other relevant information from time to time  o  Monthly, Annual Reports and their Format   Incorporation related and entity type etc o  Matters related to which entities are entitled to run Payments Systems  o  Some countries insist that Payments System should be run by company incorporated in the same country and must have specific corporate structure i.e. Public/Private entities only.     Matters related to Ownership of Payment System/Provider o  Certain countries insist on certain structure on ownership i.e. Domestic etc.     Corporate Governance Related o  Most of the countries expect the Payment System Providers to ensure high corporate governance requirement  representation n of iindepende ndependent nt directors  o  This could be in terms of representatio o  Various committees with independent representatives  o  Regular reporting of the financials and publishing of the same to authorities from time to time  A udit  o  Internal Audit requirements besides Statutory Audit







  Treatment of Funds: Deposit, Advance; Accounts Payable o  Most of the countries treat the money collected for Prepaid Account/Card as Accounts Payable or Advance against future payments.



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    Risk Management and Internal Control: Operational Risk; Fraud; System Security; disaster recovery; data backup; System integrity o  Most of the countries provide regulatory guidelines and requirements around ensuring regular uptime of the services and ensuring the integrity of the system, security and adequate arrangements by Payments System Providers to have Data Backup and Disaster Recovery System.  o  Adequate internal controls to mitigate risk against Fraud etc are responsibility of the Payments System provider    Information and Accounting System: Reporting requirement for regular reports, internal and statutory audit for authenticity of the reports o  Very few countries talk about Accounting System being used by Payments System Provider however insist on adequate Auditing of Reports and Financial statements by appropriate internal and statutory auditor to ensure authenticity of the information and reports     Minimum Capital Structure







countries regulation provides power to regulator to specify minimum   Few capital structure or additional capital requirement to be added as special condition at the time of authorization on case to case basis if deemed appropriate by the regulator. 

o

1.  Prepaid Payment Systems in India The Prepaid Payment System in India has been in existence for long primarily with the beginning of Calling Cards by MTNL (Virtual Calling Cards – VCCs), Voice Over IP (VOIP) Cards, and Long Distance Calling Cards, Prepaid Mobile Recharge Cards. Most of these were from Telecom industry to provide the customer access to telecon services as per customers’ affordability i.e.; inGift different denominations, and alsohave to keep them within control of their budget. Corporate Vouchers and Food Coupons been in existence for long for various tax-related benefits and incentives. Gift and Discount vouchers/coupons have been in place for long by various branded outlets, superstores and malls across the country. The recent entrant has been general purpose reloadable prepaid cards for payments on internet, mobile and phones and recently on POS. Most of these are targeting domestic customers in India from middle class families who want to control their budget and risks. Few years back Oriental Bank of Commerce also had launched India’s first prepaid card with MasterCard which was open-loop since customer could acquire the card with limited KYC and also withdraw money from ATM. Recently most of the banks have launched various formats of prepaid cards like Gift Card and Travel. Travel Cards are primarily targeting customers who travel abroad and instead of carrying Travellers’ Cheques Travel Cards are promoted for its ease and convenience and reduction in risk for these customers.

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  Nonbank prepaid card products are regulated by country’s general laws like Contract Act, Consumer Protection Act etc. Indian Parliament has recently passed the Payments and Settlement Systems Act 2007. This Act has provided authority to the Reserve Bank of India (RBI) to regulate Payments and Settlement Systems in the country. It is proposed to regulate most of the open loop prepaid payments by the RBI and a guideline can be provided for close loop card with requirement to provide various information from time to time in view of Public Interest and ensuring the integrity of these payment systems.

2.  Prepaid Payment Systems: Industry Observations on Regulatory Framework Matters of Prepaid Payment System which may need to be covered by regulations/Guidelines regulations/Gu idelines in interest of the Industry and the country are as follows:   Applicability of the Laws/Regulation



It is important to ensure that any system that holds customer funds has adequate controls to protect those fund funds. s. For Open Loop Pre Prepaid paid System Systemss which p provide rovide fu funds nds out, redemption or international remittance services may be covered by the proposed law, such products may be on either the Bank Led Model or permit Payment Systems under the Payment and Settlement Act which can demonstrate adequate controls, capital and liquidity requirements to ensure the protection of customer funds. Where the risks are lower, such as in a Close Loop Prepaid Payment System which are providing specific payment services to limited merchants and there is no cash redemption may be exempted from licensing under a regulation, and be required to register and comply with general guidelines for their registration and annual information for data collection point of view should be provided. Hybrid Prepaid Payment System also be exempted from licensing under a regulation, but they should be asked to register and in some case be authorized, operating under a regular code of conduct and basic guidelines. They may be asked to provide additional information from time to time in proportion to the risk.   Authorization for existing or new players



Authorization for existing or new players of Open Loop Prepaid System should be applicable and accordingly appropriate rules may be provided. Adequate time and support should be provided for existing players whose track record is proven to good in terms of their 12

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  deliverables and settlement with parties to authorize them on time bound basis to ensure that no uncertainty is created for existing consumers and merchants participating in existing system. New Players must seek Authorization before commencing the business of Prepaid Payment System.   Conditions for Authorisations



Conditions for Authorizations should be pre-specified to provide adequate opportunity for Payments Players to comply with the same in advance while submitting the application for authorization.   Reporting Requirements



Prepaid Payments Systems which requires Authorization (Open Loop) may be subject to regular reporting of specific information in pre-specified formats on monthly and annual basis. Prepaid Payments Systems not requiring Authorisation and only being registered may also provide specific information like Financial Statements in pre-specified format on annual basis and for any specific matter in case required by Regulators on time to time basis. These reports should be primarily for Payments Statistics and in general interest of consumer protection.   Incorporation related and entity type etc



It is advisable that only corporate entities which are subject to high governance standards be permitted to operate Prepaid Payment Systems.   Corporate Governance Related



Regulatory may advise all Prepaid Payment Systems Open/Close/Hybrid to be subject to Strict Corporate Governance Requirements to ensure that the business of these systems is run in a transparent manner and uses best practices.   Risk Management and Internal Control: Operational Risk; Fraud; System Security; disaster recovery; data backup; System integrity



Regulators may provide as general guidelines to be followed by all Prepaid Payments Systems to follow best practices in matters related to Risk Management, System Security and Integrity, Disaster Recovery, Data Backup and Consumer Service system.   Application Procedures for Authorisation and Registration



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  Regulator, like most of the countries, may provide the following system to deal with Application for Authorisation or Registration   Preliminary Consultation: Provide names of appropriate officers and departments and their contact details, who shall be available to such Payment Service Provider for appropriate consultation, who may have various queries related to the Application and   Application Procedures: Provide details of the application procedure proceduress and timelines, appropriate formats, rules etc.   Submission of Application: Provide details of the persons to whom the application can be submitted and in various manner possible i.e. physical, electronic etc.   Processing of Application and Authorisation/Registration:  Provide details of internal general process being followed for processing of these application and general timelines and criterion on which basis Authorisation and Registration is









completed. In country like India where large population is unbanked and underserved Prepaid Path can lead to faster Financial Inclusion due to some of the inherent features of Prepaid Payment Systems like:   Payments only product focused on safety and convenience (Nonbank Led)   B2B Payment Collection product to enable 24*7 collections and also collections from remote areas (Nonbank Led)   Microfinance (loan disbursement)/Credit disbursement)/Credit primary to act as enabler and risk minimization (Nonbank and Microfinance Institutions led) l ed)   Remittance (small money) Domestic for migrant population in Metro cities (Nonbank Led and Bank Led)   No Frill’s Account to work as bank account for poor and unbanked (Bank Led)











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  3.  Prepaid Payments Systems: Best Practices, Proposed Code of Conduct for Payments Systems Principles of Business

(1) Integrity

A firm must conduct its business with integrity.

(2) Skill, care and diligence

A firm must conduct its business with skill, care, and diligence.

(3) Management and control

A firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems.

(4) Financial prudence

A firm must maintain adequate financial resources.

(5) Market Conduct

A firm must observe proper standards of market conduct.

(6) Customer Interests

A firm must pay due regard to the interest of its customers and treat them fairly.

(7) Communications with clients

A firm must pay due regard to the information need of its clients and communicate information in a way which is clear, fair and not misleading.

(8) Conflicts of interests

A firm must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client.

(9) Customers: Relationship of trust

A firm must take reasonable care to ensure the suitability of its advice and discretionary decisions for any customers who is entitled to rely upon its judgements.

(10) Client’s assets

A firm must arrange adequate protection fir clients assets when it is responsible for them.

(11) Relations with Regulators

A firm must deal with its regulator in an open and co operative ways, and must disclose to the FSA appropriately appropriate ly anything relating to the firm of which the FSA would reasonably expect notice.

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  The Threshold Conditions Threshold Conditions 1-Legal Status Threshold Conditions 2- Location Of The Office

Threshold Conditions 3 – Close L Links inks

Threshold Conditions 4 – Adequate Resources Threshold Conditions 5 - Suitability

A firm carrying on e-money issuance must be a b body ody corporate or a partnership. A firm, which is a body corporate, constituted under the law of any the united Kingdom must have its head office and, if it has one, its registered office in the United Kingdom. A firm which has its head office in the United Kingdom but is not a body corporate must carry on business in the United Kingdom. This co condition ndition requires us to be satisf satisfied ied tha thatt any close links that a firm has with another person do not prevent effective supervision of that firm. This condition requires us to be satisfied that the firm has adequate resources in relation to the regulated activity or activates for which it has permission or for which permission is being sought. This condition requires us to be satisfied that the firm is ‘fit and proper’ to be authorised and permitted to carry on the relevant activities.

Source: Consultation Paper on: The Regulation of Electronic Money Issuers Issuer s by Financial Services Authority

4.  Proposed Code of Conduct for Prepaid Payment Systems 1. What is the Issuer Code of Conduct for Prepaid Cards? The Issuer Code of Conduct (“Code”) is designed to provide guidance to prepaid payment product issuers (“Issuers”) in the development, marketing, distribution and sales of prepaid payment products. The Code is based on a set of core principles agreed by the member of Payments Committee of IAMAI and broad guidelines covering each stage of the life cycle of prepaid payment product issuance. All references to a “prepaid payment system” in this Code shall mean any prepaid payment product (physical or virtual) including without limitation a card, e-voucher or code. The Code is designed to be applicable to Issuers in India. 2. Key Principles of the Code: • To promote and demonstrate fairness to the end-user customer • To encourage simplicity and clarity in all communications and interfaces with the customer • To develop good practices in communication which are accurate and accessible • To provide transparency to the customer in all terms and conditions relating to the prepaid payment system

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  3. Code of Conduct: The Code has been developed around three phases based on the life cycle of a prepaid payment product. A – Customer purchase of a prepaid payment product: a) Marketing of prepaid: • Target customer identification: - As good practice Issuers should ensure that segmentation strategies for targeting purposes positively exclude, where possible, any customer details for segments that should not be targeted for certain prepaid types, e.g. children • Advertising and promotional standards -Issuers should encourage consistency throughout marketing campaigns to avoid misrepresentation (this includes consistent use of images and text across all marketing communications) -Issuers should strive towards clarity and transparency of promotional messages across all marketing campaigns to avoid confusion and misunderstanding -Images and text should not offend public morality b) Issuance/sale of prepaid: • Customer due diligence (previously known as “Know your customer” or “KYC”) and antimoney laundering (AML) requirements vary from product to product like Open Loop, Close Loop or Hybrid. From the customer perspective the Issuer should have processes and communications messages in place to ensure that the customer understands why and how these requirements vary and provide clarity as asked by consumers. • Terms and conditions relating to a prepaid service should be made available in a convenient and reasonable manner depending upon the type of service and the expectations of the customers such as in print or online, if required, to all customers. • The Issuer should adopt best practices in transparency to the customer throughout the application and prepaid service issuance process. This information should be clearly advised before a prepaid card is actually sold/issued. • Methods for reloading the prepaid service should be made clear to the customer when they register or are issued with it • The customer should be advised of any legal responsibilities or restriction regarding prepaid service usage, e.g. the prepaid card should not be provided to children for certain purchases • Terms and conditions should indicate whether the prepaid service has an expiry date • It is recommended that the level of customer protection is shown in a question and answer format in both product literature and terms and conditions, e.g. -Do I lose money if the prepaid card is not used? - What happens when I purchase something that goes wrong? - If there is customer protection do I have to opt in or out? -What happens if the prepaid card is lost or stolen?

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  B - Usage of prepaid: • Issuers should clearly disclose the company issuing the prepaid service. • Issuers should ensure that the customer has reasonable opportunities to use the prepaid service. • As a matter of best practice Issuers should endeavour to provide a means for customers to know the balance available to spend using their prepaid service, whether by SMS text, online, telephone or at a physical POS or reload network. • Customer help desk contact numbers or email customer support should be clearly disclosed to the customers. C– Termination or closure of the prepaid card: • Issuers should develop rules and guidelines to communicate to the customer in the following circumstances:   Provide information regarding who can terminate/Cancel a prepaid card for the Issuer and/or customer •

D - Advice to Prepaid Consumers: − As prepaid services can vary significantly, read the terms of the offer fully − Be sure to fully understand the fee structure; − Be aware of any minimum or maximum value load requirements; − Understand where the service/card is accepted. E – Best Practice for Prepaid Businesses:

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