Easy­card, oth­ers get OK for third-party pay­ments

The China Post - - BUSINESS -

The Leg­isla­tive Yuan has passed an amend­ment that au­tho­rizes Easy­card and three other ex­ist­ing elec­tronic stored­value cards to con­duct third­party on­line pay­ments.

The amend­ment to the Act Gov­ern­ing Is­suance of Elec­tronic Stored Value Cards, which was passed Tues­day, builds on an- other bill passed by the Leg­is­la­ture in Jan­uary that pro­vided a legal ba­sis for lo­cal com­pa­nies to run third- party on­line pay­ment busi­nesses, like U. S.- based PayPal.

The leg­is­la­tion passed Tues­day is ex­pected to broaden the scope of ex­ist­ing elec­tronic stored value cards and give an added boost to Tai­wan’s third- party on­line pay­ment an­a­lysts said.

Easy­card, which is is­sued by Easy­card Corp., is one of the cards that will be al­lowed to of­fer third- party pay­ment ser­vices. It is cur­rently used pri­mar­ily to pay MRT and bus fares and make pur­chases — worth a max­i­mum of NT$ 1,000 per trans­ac­tion and NT$ 3,000 per day —

sec­tor, in con­ve­nience stores and other au­tho­rized shops.

The newly passed law will also help iPass, iCash and Hap­pyCash ex­tend their reach to the third­party pay­ment sec­tor.

IPass is is­sued by iPass Corp. and is mainly used for trans­porta­tion fares in South­ern Tai­wan and billing in se­lect shops.

ICash is is­sued by 7- Eleven con­ve­nience store chain op­er­a­tor Pres­i­dent Chain Store Corp., and the Hap­pyCash card is is­sued by con­glom­er­ate Far Eastern Group for pay­ments at the group’s re­tail out­lets.

The newly amended law will re­quire par­tic­i­pat­ing elec­tronic stored-value card is­suers to give card­hold­ers a re­bate from the in­ter­est in­come or other in­come they make on the money card­hold­ers have stored in their cards.

The op­er­a­tors must put a cer­tain per­cent­age of the funds stored in the cards into a bank ac­count to fi­nance the re­bates, ac­cord­ing to the amend­ment.

Non- bank card is­suers will also be re­quired to as­sign re­serves equal to a cer­tain part of the funds they have re­ceived from con­sumers by ei­ther open­ing a trust ac­count or se­cur­ing guar­an­tees from banks in a bid to pro­tect con­sumers’ rights.

An­other clause in the new amend­ment al­lows a card­holder whose name ap­pears on the card to trans­fer their funds to other third- party pay­ment ac­counts reg­is­tered un­der his or her name.

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