Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (4) of 2021

Regarding the Provision by Payment Service Companies of the Prepaid Payment Card Issuance Service

Pursuant to the provisions of Decision-Law No. (17) of 2012 concerning the National Payments Settlement Law, and specifically Articles (5) and (9) thereof, and pursuant to what was approved by the Board of Directors of the Palestine Monetary Authority in its meeting No. (236) dated 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 contained 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 the prepaid payment card issuance service.
• 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, and which can be accepted for purchasing goods and services and for cash withdrawal 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, and 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, and 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 the prepaid payment card issuance service.

---

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 provisions, the system, and financial guarantees, 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 must fall within the financial limit as stipulated in Appendix No. (2) of Instructions No. (3) of 2021 concerning the provision by payment service companies of the electronic wallet service.

Article (7)

Closed Prepaid Payment Card

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

1. Use the card exclusively for purchasing purposes through the contracted entity or entities.
2. The contracted entity must be a merchant, a company, or a group of stores or companies bearing the same name or brand.
3. The stored value in the card must not exceed (200) two hundred US dollars or its equivalent in other currencies.
4. An account must be opened for the contracted entity for the purpose of conducting financial settlements.
5. The card must be non-rechargeable and non-withdrawable for cash.
6. The card must be valid for use for two years after the latest modification date.
7. The card design must differ from plastic payment cards and bear 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 must 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 must return the card balance to the user at the nominal value in the same currency in case of suspension of the service provision by the Service Provider.

Article (9)

Repeal

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

Article (10)

Implementation and Application

All competent authorities shall implement the provisions of these Instructions within 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 was edited in accordance with the instructions of the Palestine Monetary Authority, and was included in full while preserving the original structure of the document.

---

Clarifying Notes (not part of the official text):

• The text is taken from an official document issued by the Palestine Monetary Authority.
• The original formatting of headings, articles, and paragraphs has been preserved.
• Markdown was used to display the text in an organized and easy-to-read format.
• No comments or analytical notes have been added.
• Any blank or repetitive pages have been ignored.