Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (4) of 2021

Regarding Payment Service Companies Providing Prepaid Payment Card Issuance Services

Based on the provisions of Legislative Decree No. (17) of 2012 concerning the National Payments Settlement Law, and specifically Articles (5) and (9) thereof, and based on what was approved by the Board of Directors of the Palestine Monetary Authority in its meeting No. (236) on 23/06/2021, and in pursuit of the public interest, we have issued the following Instructions:

---

Chapter One

Definitions and Scope of Application

Article (1)

Definitions

The words and phrases appearing in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:

• Authority: The Palestine Monetary Authority.
• Service Provider: The company licensed by the Authority to provide prepaid payment card issuance services.
• Open Prepaid Payment Card: A payment instrument issued by the Service Provider carrying a stored value paid in advance by the user to the Service Provider, which can be accepted for purchasing goods and services and for cash withdrawals through ATMs.
• Semi-Closed Prepaid Payment Card: A payment instrument issued by the Service Provider carrying a stored value paid in advance by the user to the Service Provider, which can be accepted for purchasing goods and services within a specific group only.
• Closed Prepaid Payment Card: A payment instrument issued by the Service Provider carrying a stored value paid in advance by the user to the Service Provider, which is accepted only by the contracted entity.

---

Article (2)

Objective and Scope of Application

1. These Instructions aim to regulate the prepaid payment card issuance service in a secure and transparent manner.
2. The provisions of these Instructions shall apply to all companies licensed by the Palestine Monetary Authority to provide prepaid payment card issuance services.

---

Chapter Two

Prepaid Payment Cards

Article (3)

Account Opening

1. The issuance of a prepaid payment card shall be linked to an account opened with the Service Provider, except for the closed prepaid payment card.
2. The provisions of Instructions No. (3) of 2021 concerning the electronic wallet applicable to prepaid payment cards shall apply regarding account opening, system, and financial guarantee provisions, insofar as they do not conflict with what is stated in these Instructions.

Article (4)

Categories

The Service Provider may issue prepaid payment cards as follows:

• a. Open prepaid payment card.
• b. Semi-closed prepaid payment card.
• c. Closed prepaid payment card.

Article (5)

Conditions for Open and Semi-Closed Prepaid Payment Cards

The Service Provider shall comply with the following before issuing any open or semi-closed prepaid payment cards:

Closed:

1. The card must comply with global card standards (EMV).

---

Article (6)

Limits for Payment, Withdrawal, and Transfer Operations

The limit for open and semi-closed prepaid payment cards shall fall within the financial limit as stipulated in Annex No. (2) of Instructions No. (3) of 2021 regarding payment service companies providing electronic wallet services.

Article (7)

Closed Prepaid Payment Card

The Service Provider shall comply with the following when issuing a closed prepaid payment card:

1. The card shall be used exclusively for purchasing purposes through the contracted entity or entities.
2. The contracted entity shall be a merchant, company, or group of stores or companies sharing the same name or brand.
3. The stored value in the card shall not exceed (200) two hundred US dollars or its equivalent in other currencies.
4. An account shall be opened for the contracted entity for the purpose of conducting financial settlements.
5. The card shall be non-rechargeable and non-withdrawable for cash.
6. The card shall be valid for use for two years from the date of its activation.
7. A card design different from plastic payment cards shall be adopted, bearing the name and/or brand and/or logo of the contracted entity.

---

Article (8)

Refund of Prepaid Payment Card Value

1. The user shall be able to withdraw their balance in open and semi-closed prepaid payment cards upon account closure at the nominal value in the same currency.
2. In the event of expiration of open and semi-closed prepaid payment cards, the Service Provider shall transfer the remaining balance value to a new card or return it to the user at the nominal value in the same currency.
3. The Service Provider shall refund the card balance to the user in the event of suspension of service provision by the Service Provider at the nominal value in the same currency.

Article (9)

Repeal

1. Instructions No. (2) of 2020 regarding payment service companies providing prepaid payment card issuance services are hereby repealed.
2. Any provision conflicting with the provisions of these Instructions is hereby repealed.

Article (10)

Implementation and Enforcement

All competent authorities shall implement the provisions of these Instructions according to their respective jurisdictions, and they shall apply from the date of their issuance.

---

Issued in the city of Ramallah on 30/06/2021 AD

Dr. Firas Malham
Governor

---

Note: The above text has been edited in accordance with the instructions of the Palestine Monetary Authority, and includes all articles and provisions as they appeared in the original document.

---

Editorial Note:
All pages (1 to 4) have been included while preserving the original formatting, including headings, articles, and lists. Any redundant or explanatory elements unrelated to the original legal text have been disregarded.

---

Legal Note:
This text is a re-edited version for documentation purposes and does not constitute an official copy from the Palestine Monetary Authority, but was prepared in accordance with the provided instructions.

---

Contact Information:

• Ramallah and Al-Bireh:
  Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452
  info@pma.ps | Fax: +970 2 2415310 | Phone: +970 2 2415251

• Gaza:
  Gaza - Palestine P.O. Box 4026
  Fax: +970 8 2844487 | Phone: +970 8 2825713

Website: www.pma.ps