Easycard, others get OK for third-party payments
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.