Paper for the Bills Committee
Banking (Amendment) Bill 1996
Maximum limits on the amount of value that can be stored on stored value cards
Members of the Bills Committee have expressed interest in the maximum limits on the amount of value that can be stored on stored value cards in other countries. We have now received additional information which is summarised in the attached table for Members information. Limits of one kind or another apply to non-bank cards in three countries (Germany, Netherlands and US). These range from HK$702 to HK$1,053, suggesting that a possible exemption threshold for non-bank cards of HK$1,000 does not look out of line.
Hong Kong Monetary Authority
9 October 1996
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Stored value card schemes of some major countries
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Countries
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Austria
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Belgium
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Denmark
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France
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Germany
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Italy
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Japan
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Korea
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Regulatory approach towards Multi-purpose stored value cards (MPCs)
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issuers restricted to banks
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issuers restricted to banks based on existing banking law
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specific legislation for supervision of prepaid card systems
(no information on whether issuers are restricted to credit institutions)
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issuers restricted to credit institutions based on existing banking law
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Currently no legal restrictions on issuance of electronic money
Amendments to Banking Law being processed to restrict issuers to banks (but providers of smaller card systems would be exempted from a number of requirements)
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issuers restricted to banks based on the amended banking law
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no specific legislation
(existing "Prepaid Card Law" covers card-based products from consumer protection perspective)
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issuers restricted to banks
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Existing issuers of MPCs
(name of card scheme)
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bank-owned vehicle
(Quick)
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bank-owned vehicle
(Proton)
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a company jointly owned by a bank-owned vehicle and a non-bank (public telephone co.)
(Danmont)
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(pilot project being considered by banks)
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banks
(GeldKarte)
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non-banks
(PayCard)
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group of banks (Cassamat) or bank-controlled company (MINIpay)
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(pilot projects being conducted by several entities, which are mainly banks)
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banks
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Maximum limit* on MPCs
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USD 160
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USD 150
(targeted at payments below USD15)
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USD 51
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information not available
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USD 270
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USD 135
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USD 180
(MINIpay)
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information not available
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USD 62
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HKD equivalent at USD1:HKD7.80
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HKD 1,248
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HKD 1,170
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HKD 398
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--
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HKD 2,106
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HKD 1,053
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HKD 1,404
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--
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HKD 484 |
* These limits represent the features of individual card schemes. In setting these limits, the issuer may have taken account of the limits set by the authorities for regulatory purposes. But we have no detailed information on this.
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Countries
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Netherlands
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Portugal
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Singapore
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Spain
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United Kingdom
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United States
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Regulatory approach towards Multi-purpose stored value cards (MPCs)
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issuers restricted to credit institutions based on existing banking law
non-bank issuers have agreed to be subject to supervision
whether small and local systems should be given exemption has not been decided yet
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issuers restricted to banks
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issuers restricted to banks having the approval of the Monetary Authority of Singapore under the amended Banking Act
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issuers restricted to credit institutions according to Royal Decree
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subscribes to the views of the EMI report that issuers be restricted to credit institutions
not yet clear whether MPCs will be subject to the provisions of the Banking Act
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no specific legislation on regulation
proposes to apply part of the Electronic Fund Transfer Act and Regulation E, such as appropriate disclosure, to MPCs. Also proposes to exempt certain types of SVCs with maximum balances of no more than USD 100 from such requirements.
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Existing issuers of MPCs
(name of card scheme)
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banks
(first stage of Chipknip)
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non-bank institution
(Primeur Card)
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bank-owned company
(PMB)
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(pilot project being undertaken by banks)
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banks
(Monedero 4B, Euro 6000 and VisaCash)
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banks
(Mondex)
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banks or bank-owned vehicle
(Mondex, VisaCash, MasterCard Cash and SmartCash)
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Maximum limit* on MPCs
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USD 300
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USD 90
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USD 411
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information not available
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USD 200-240
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USD 715
(for Mondex consumer cards; retailer cards have higher limits)
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USD 100
(being the limit under which the MPCs would be exempted from the proposed requirements under Regulation E)
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HKD equivalent at USD1:HKD7.80
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HKD 2,340
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HKD 702
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HKD 3,206
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--
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HKD 1,560-1,872
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HKD 5,577
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HKD 780 |
* These limits represent the features of individual card schemes. In setting these limits, the issuer may have taken account of the limits set by the authorities for regulatory purposes. But we have no detailed information on this.
Last Updated on 15 December 1998
