Regulatory Alerts2019-06-23
Added · Updated
Rules Regulating Payment Services Using Prepaid Cards in the Arab Republic of Egypt
The document establishes the regulatory framework for prepaid card payment services in Egypt to promote financial inclusion and a cashless society. It defines key terms including open, semi-open, and closed prepaid cards, and outlines the organizational structure, management responsibilities, and product specifications for service providers. The rules mandate strict supervisory controls over card issuance, third-party service providers, and outsourced functions, while requiring robust business continuity plans, data confidentiality, and standard service contracts.
Rules Regulating Payment Services Using Prepaid Cards in the Arab Republic of Egypt
Introduction
In the context of the financial inclusion plan and the transition to a cashless society, and to make banking services available to all members of society, including those unable to access them, youth, and residents of remote areas, payment services using prepaid cards aim to provide a payment method for all segments of society to expand the base of customers interacting with banks and achieve financial inclusion.
The following words and expressions shall have the meanings indicated below wherever they appear in these Rules:
| Term | Definition |
|---|---|
| Prepaid Card | A card or electronic payment instrument that is pre-funded by the user, and can be used for transactions and cash withdrawal in exchange for the value stored in it. It can be transferred to others (prepaid open cards, semi-open prepaid cards, closed prepaid cards). |
| Prepaid Open Card | A card that can be used for transactions (cash withdrawal / deposit / transfer) and also for transactions at electronic payment terminals (POS) and online (E-Commerce), as well as for payment to any entity or company with a specific purpose. |
| Prepaid Semi-Open Card | A card that can be used only for transactions at electronic payment terminals (POS) and online (E-Commerce), and cash cannot be withdrawn from it. It can be used for payment to entities or companies with a specific purpose, such as gift cards. |
| Prepaid Closed Card | A card that can be used only for transactions at electronic payment terminals (POS) and cannot withdraw cash from it. It can be used for payment to a specific group of entities / branches / branches / banks, such as a prepaid card for a specific group. |
1. Rules and Definitions
1-1. Management of Payment Services Using Prepaid Cards
1-1-1. Entities Associated with Payment Services Using Prepaid Cards
1-1-2. Responsibilities and Obligations of the Management and Senior Management
1-1-3. Product Specifications for Payment Services Using Prepaid Cards
1-1-4. Rules for Anti-Money Laundering and Combating the Financing of Terrorism
2. Supervisory Rules for Payment Services Using Prepaid Cards
2-1. Issuance of Prepaid Cards
2-2. Use of Service Providers
2-3. Management of Prepaid Card Issuance
2-4. Outsourcing and Management
2-5. Business Continuity and Operational Resilience
2-6. Confidentiality and Security of Information
3. General Rules and Regulations for Other Providers
3-1. Service Provision Contract / Application Form
3-2. Reporting of Irregularities
4. Interpretation of the Rules for Providing the Service
4-1. The Law and Rules Governing the Use of Service Providers
4-2. Comparison Between Types of Prepaid Cards
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