Entire Section

  • GEN 2.6.4 GEN 2.6.4

    (1) A Person does not Provide Money Services where the Person issues electronically stored monetary value that can be used only to pay for goods or services, other than Money Services, provided by that Person or another entity in the Person’s Group.
    (2) Where a portion of electronically stored monetary value issued by a Person can be used only to pay for goods or services referred to in (1), then the Person does not Provide Money Services in respect of that relevant portion if the conditions in (3) are met.
    (3) The conditions in (2) are that the relevant portion:
    (a) is discrete and clearly identifiable; and
    (b) can be used only to pay for goods and services referred to in (1) and cannot be used for any other purpose.
    Derived from RMI266/2020 (Made 26th February 2020). [VER48/04-20]

    • GEN 2.6.4 Guidance

      1. GEN Rule 2.6.4 is intended to exclude monetary value issued by a merchant that is accepted only by the merchant itself (i.e. a ‘closed loop’ system). Examples of services that will be excluded under this Rule include cards that can be used only to pay for goods purchased from a specific store or chain of stores or that can be used only to pay for a particular service (such as a taxi or other transport service) or to pay for goods or services offered by a specific club or organisation. However, if a card is more generally accepted, and can be used with other third parties, it will not fall within the exclusion.
      2. Where monetary value on a card or wallet can be used for a combination of purposes, all of that monetary value is likely to constitute Stored Value unless the issuer can demonstrate that there is a clear separation between amounts that can be used only for the issuer’s goods and services and amounts that can be used for mixed purposes.
      Derived from RMI266/2020 (Made 26th February 2020). [VER48/04-20]