Post by Sapphire Capital on Jul 8, 2015 3:03:54 GMT 4
A Stored Value Facility (SVF) is a form of prepaid electronic cash or card that can be used within the system of the SVF issuer. The SVF issuer is known as the holder of the stored value. Some electronic SVFs are also known as e-money. Usage of SVFs usually does not require Personal Identification Numbers (PINs) or signatures. The Payment Systems (Oversight) Act (PS(O)A) and its related regulations governs the issuance and management of SVFs. Please access these regulations via the Key Resources links below.
An SVF may be a single purpose scheme or a multi-purpose one. A single purpose SVF is an SVF that is, or is intended to be, used for payment only of goods or services, or of both goods and services, provided by the holder of that stored value facility. Note that single purpose SVFs are exempt from certain sections of the PS(O)A.
When the stored value outstanding in a multi-purpose SVF scheme exceeds a prescribed threshold limit set in the PS(O)A, the SVF is regarded as a widely accepted SVF (WA SVFs). Currently the threshold limit stands at $30 million. The approval of MAS is required for the continued operation of this type of SVF scheme. The PS(O)A defines WA SVFs as a stored value facility -
(a) in which the stored value is held by an approved holder; and
(b) in respect of which an approved bank has undertaken to be fully liable for the stored value.
In the event that an SVF allows users to store S$1,000 or more in stored value, the holder is also required to comply with the PSOA-N02: Notice to Holders of Stored Value Facilities on Prevention of Money Laundering and Countering the Financing of Terrorism. This notice, issued in November 2007, requires holders to implement “know-your-customer” measures to establish and verify the identity of users.
Approved WA SVFs
As of May 2012, only three SVFs are approved as WA SVFs by MAS. They are the "NETS CashCard", introduced by Network for Electronic Transfers (Singapore) Pte Ltd (NETS) in November 1996, the "ez-link Card" introduced by EZ-Link Pte Ltd in April 2002, and the “NETS FlashPay”, introduced by NETS in October 2009.
The NETS CashCard is based on smart card technology, and is used primarily for payment of electronic road pricing and parking fees. The ez-link Card and NETS FlashPay are based on the locally developed Specification for Contactless e-Purse Application (CEPAS) smart card standard, and are used both in the public transport system and at numerous retail points of sale.
Users, Operators and Issuers of SVF
For users or consumers of SVFs, a MoneySense article is available that provides an overview of SVFs.
www.moneysense.gov.sg/Understanding-Financial-Products/Banking-and-Cash/Types-of-Products-and-Services/Stored-Value-Facilities.aspx
www.mas.gov.sg/Regulations-and-Financial-Stability/Regulations-Guidance-and-Licensing/Payment-and-Settlement-Systems/Payment-Systems-Oversight-Act-2006.aspx
An SVF may be a single purpose scheme or a multi-purpose one. A single purpose SVF is an SVF that is, or is intended to be, used for payment only of goods or services, or of both goods and services, provided by the holder of that stored value facility. Note that single purpose SVFs are exempt from certain sections of the PS(O)A.
When the stored value outstanding in a multi-purpose SVF scheme exceeds a prescribed threshold limit set in the PS(O)A, the SVF is regarded as a widely accepted SVF (WA SVFs). Currently the threshold limit stands at $30 million. The approval of MAS is required for the continued operation of this type of SVF scheme. The PS(O)A defines WA SVFs as a stored value facility -
(a) in which the stored value is held by an approved holder; and
(b) in respect of which an approved bank has undertaken to be fully liable for the stored value.
In the event that an SVF allows users to store S$1,000 or more in stored value, the holder is also required to comply with the PSOA-N02: Notice to Holders of Stored Value Facilities on Prevention of Money Laundering and Countering the Financing of Terrorism. This notice, issued in November 2007, requires holders to implement “know-your-customer” measures to establish and verify the identity of users.
Approved WA SVFs
As of May 2012, only three SVFs are approved as WA SVFs by MAS. They are the "NETS CashCard", introduced by Network for Electronic Transfers (Singapore) Pte Ltd (NETS) in November 1996, the "ez-link Card" introduced by EZ-Link Pte Ltd in April 2002, and the “NETS FlashPay”, introduced by NETS in October 2009.
The NETS CashCard is based on smart card technology, and is used primarily for payment of electronic road pricing and parking fees. The ez-link Card and NETS FlashPay are based on the locally developed Specification for Contactless e-Purse Application (CEPAS) smart card standard, and are used both in the public transport system and at numerous retail points of sale.
Users, Operators and Issuers of SVF
For users or consumers of SVFs, a MoneySense article is available that provides an overview of SVFs.
www.moneysense.gov.sg/Understanding-Financial-Products/Banking-and-Cash/Types-of-Products-and-Services/Stored-Value-Facilities.aspx
www.mas.gov.sg/Regulations-and-Financial-Stability/Regulations-Guidance-and-Licensing/Payment-and-Settlement-Systems/Payment-Systems-Oversight-Act-2006.aspx