Do I need a license to issue pre-paid cards
A pre-paid card is a form of payment card which has a specified amount of money pre-loaded on it. A pre-paid card can be used to make payments at terminals and online where the card is accepted. An example of a pre-paid card is a gift card issued by retail outlets. Companies issuing pre-paid cards must meet certain requirements and obtain the relevant license to do so. It is important that the issuing company understands the requirements involved and so it is advised to seek the support and guidance of a professional consultancy firm that is experience in pre-paid card requirements.
For more information on the licensing requirements of pre-paid cards, please Contact DeltaQuest and a member of our team will be in touch.
License for issuing pre-paid cards explained
For non financial or authoritative bodies to issue pre-paid cards they must first seek approval from the relevant financial body and obtain the necessary license as stipulated by the country in which the company operates from.
By obtaining the relevant license to issue pre-paid cards, it will demonstrate to customers that the company is legal to operate and also compliant with the relevant standards and regulations as set by the license issuing body.
In order to obtain the necessary license to issue pre-paid cards the applicant will typically need to be a Limited Liability Company, other requirements may include:
- Minimum start up capital
- Implementation of relevant anti money laundering and anti fraud measures
- Company must meet the requirements in terms of structure and internal and external operations to obtain the license
- Company may need to have effective control systems in place
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