The Zhitong Finance App learned that on July 24, the People's Bank of China issued a notice seeking public comments on the “Administrative Measures on Class II Business Operation of Stored Value Accounts”. Among them, it is mentioned that the “Measures” are institutional guarantees to promote the healthy development of Class II stored value account operations. With the development of the prepaid card business, some new situations have emerged in the market, including innovative practices for convenience and benefit, as well as irregularities and risk incidents. In this regard, it is necessary to adapt and improve the regulatory system in line with the development trends and hidden risks of the prepaid card business, create a favorable policy environment, and promote the healthy and orderly development of the prepaid card industry.
The original text is as follows:
Notice of the People's Bank of China seeking public comments on the “Administrative Measures on Stored Value Account Operation Class II Business (Draft for Comments)”
In order to strengthen the rule of law in finance, the People's Bank of China has drafted the “Administrative Measures on Class II Business Operation of Stored Value Accounts (Draft for Comments)” and is now publicly soliciting comments from the public. The public can provide feedback through the following channels and methods:
1. Send comments by email to: paymentcard@pbc.gov.cn, and please indicate the words “Request for Comments on the System Related to Stored Value Account Operation Class II Business” in the subject line of the email.
2. Send the comments by letter to the Payment and Settlement Department of the People's Bank of China, No. 30, Financial Street, Xicheng District, Beijing (postal code: 100033), and please indicate the words “Request for Comments on the System Related to Class II Business Operation of Stored Value Accounts” on the envelope.
The deadline for feedback is August 8, 2026.
Attachment 1: Stored Value Account Operation Class II Business Management Measures (Draft for Comments)
Attachment 2: Drafting Instructions for the “Management Measures for Stored Value Account Operation Class II Business (Draft for Comments)”
People's Bank of China
July 24, 2026
Stored Value Account Operation Class II Business Management Measures
(Draft for Solicitation of Comments)
Chapter I General Provisions
Article 1 To regulate the management of Class II stored value account operations of non-bank payment institutions, protect the legitimate rights and interests of the parties concerned, and prevent payment risks, according to the “People's Bank of China Law” and “Anti-Money Laundering Law of the People's Republic of China”
Provisions such as the “Regulations on the Supervision and Administration of Non-bank Payment Institutions” formulate these Measures.
Article 2 These Measures shall apply to non-bank payment institutions that engage in Class II operations of stored value accounts within the People's Republic of China.
The type II business of stored value account operation referred to in these Measures refers to the act of non-bank payment institutions issuing prepaid cards, signing and managing special merchants themselves, and providing monetary fund transfer services to special merchants and prepaid card holders after the authorized merchant has accepted the prepaid card as agreed.
A prepaid card referred to in these Measures refers to a non-bank payment institution issued by a non-bank payment institution in the form of physical media or electronic data to record the payer's prepaid fund balance and the prepaid value of goods or services purchased outside of the card issuer.
The single-use prepaid card business does not fall under the Class II business of stored value account operation as stipulated in these Measures.
Article 3 Non-bank payment institutions (hereinafter referred to as prepaid card payment institutions) that have obtained Class II license to operate stored value accounts may conduct prepaid card issuance and acceptance business within the scope of the license.
Article 4 Prepaid card payment institutions that engage in Class II operations of stored value accounts shall follow the principles of safety, efficiency, honesty and fair competition, with the aim of providing small-value and convenient payment services to protect the legitimate rights and interests of consumers.
Article 5 Prepaid card payment institutions engaged in Class II operations of stored value accounts shall abide by the relevant regulations on anti-money laundering, anti-terrorist financing, anti-telecommunication network fraud, prevention and disposal of illegal fund-raising, and combat gambling, and take necessary measures to prevent illegal and criminal activities.
Chapter II Release
Article 6 Prepaid cards are divided into registered prepaid cards and unregistered prepaid cards.
A registered prepaid card refers to a prepaid card that records the cardholder's identity information in the prepaid card business processing system.
An anonymous prepaid card refers to a prepaid card that does not record the cardholder's identification information in the prepaid card business processing system.
Article 7 Prepaid cards issued by prepaid card payment institutions shall be denominated in RMB and issued at the same value as actual RMB funds received. The fund limit for a single registered prepaid card is not more than 5,000 yuan, and the fund limit for a single unregistered prepaid card is no more than 1,000 yuan. Prepaid cards must not have an overdraft function.
The People's Bank of China may adjust prepaid card funding limits as appropriate.
Article 8. Registered prepaid cards shall be losable, redeemable, and shall not have an expiration date.
An unregistered prepaid card will not be lost or redeemed, except as otherwise provided in these Measures.
A bearer prepaid card must be valid for at least 3 years. When issuing and selling prepaid cards, prepaid card payment institutions shall inform the purchaser of the prepaid card's expiration date and calculation method. For prepaid cards with a balance of funds beyond the expiration date, the prepaid card payment institution shall provide services such as extension, activation, and card exchange to ensure that the cardholder continues to use it.
Article 9 Where a prepaid card payment institution issues a prepaid card with physical media (physical prepaid card for short), the prepaid card card face shall record prepaid card information such as the name of the prepaid card, the name of the prepaid card payment institution, card number, expiration date, precautions, customer service phone number, etc., or a logo such as a network link or bar code for the aforementioned information.
Where a prepaid card payment institution issues a prepaid card (virtual prepaid card for short) in the form of electronic data, it shall continuously inform the prepaid card information through an effective method such as an official website or mobile internet application, and provide a channel for searching the prepaid card information.
Article 10 A prepaid card purchaser refers to the actual payer who paid to purchase a prepaid card. Individuals or organizations that purchase registered prepaid cards or purchase unregistered prepaid cards for 10,000 yuan or more in one go shall use their real name and provide a valid ID.
Where a prepaid card is purchased using a real name, the prepaid card payment institution shall identify the identity of the purchaser or unit manager, check their identity documents by effective means, register basic identity information, and keep a copy or photocopy of the valid ID. Prepaid card payment institutions shall register information such as the name of the purchaser or the name of the unit, the name and number of the unit manager, the name and number of the ID document, contact information, number of card purchases, date of purchase, total amount of the card purchased, and the prepaid card number and amount.
Where a prepaid card is purchased on behalf of another person, the prepaid card payment institution shall confirm the agency relationship by reasonable means, check the valid identity documents of the agent and the agent, register basic identity information of the agent and the agent, and keep copies or photocopies of the agent and agent's valid ID documents.
Prepaid card payment institutions shall not issue and sell prepaid cards to them if the above valid ID or agency relationship verification fails.
Article 11 For registered prepaid cards, prepaid card payment institutions shall record the cardholder's valid ID information, prepaid card number, amount, etc. in the prepaid card core business processing system, and take effective measures to verify the cardholder's ID information.
If the cardholder's valid ID information is not verified, prepaid card payment institutions shall not issue or sell prepaid cards to the cardholder.
Article 12 Where an organization buys a prepaid card for 5,000 yuan or more at one time, and an individual purchases a prepaid card for 50,000 yuan or more at one time, they shall make the purchase through a cashless payment method.
Cardholders are not permitted to use credit cards to purchase prepaid cards.
Article 13 Where a prepaid card is purchased using a non-cash payment method, the prepaid card payment institution shall record information such as the payer's account name and account number, payment channel, payment time, payment amount, order number, and payee's bank account name and account number in the prepaid card core business processing system.
The payer's account authority and clearing agency shall cooperate to accurately provide relevant information.
Article 14 Prepaid card payment institutions shall provide prepaid card regulations or sign agreements to card purchasers, and publicize the prepaid card articles and terms of agreement in prominent places at their place of business, official website, mobile internet application, etc. The prepaid card regulations or agreement shall include, but are not limited to, the following: (1) The name, type and function of the prepaid card;
(2) The expiration date and calculation method of the prepaid card;
(3) Conditions, methods, payment business processes, fund settlement methods, etc. for the purchase, use, redemption, and loss of prepaid cards;
(4) Shopping convenience or preferential content provided to cardholders;
(5) Fee items and fee standards for services such as issuance, extension, activation, exchange, redemption, and loss of prepaid cards;
(6) The rights, obligations and liability of the parties concerned;
(7) Transaction and accounting dispute handling procedures.
Article 15 Prepaid card payment institutions shall take effective measures to strengthen the protection of user information, ensure information security, and prevent information leakage and misuse. When processing user information, prepaid card payment institutions shall disclose user information processing rules, specify the purpose, method and scope of processing user information, and obtain user consent, except as otherwise provided by law or administrative regulations.
Article 16 In principle, prepaid card payment institutions shall issue and sell prepaid cards through physical outlets. Based on the demand for small and convenient payments in the public transportation sector, where it is really necessary to issue and sell prepaid cards through online channels, prepaid card payment institutions should do so through their own online platforms, and the capital limit for a single prepaid card should not exceed 200 yuan.
Article 17 Where a prepaid card is purchased or recharged through a prepaid card payment institution's own online platform, the payer shall use a real name and provide a valid ID. Prepaid card payment institutions shall manage payers under the real name system in accordance with the provisions of Article 10 (2) of these Measures.
Prepaid card payment institutions shall carry out special management of prepaid card issuance, sales, and recharge operations carried out by self-operated online platforms to ensure that prepaid funds are only used for small and convenient payments in the public transportation sector. The annual cumulative amount of prepaid cards purchased and recharged by the same payer through self-operated online platforms does not exceed 10,000 yuan, and to prevent business activities from exceeding the scope of the authorized region.
Article 18 With the exception of physical prepaid cards with a single capital limit of less than 200 yuan, prepaid card payment institutions shall not use agents to sell prepaid cards.
Where a prepaid card payment institution entrusts a sales partner agency to sell as an agent, it shall establish a consignment risk control mechanism. Sales funds shall be deposited into a prepaid card payment institution's reserve account in accordance with regulations. Prepaid card payment institutions shall require sales partners to sell prepaid cards in accordance with relevant regulations when the purchaser meets the requirements of these Measures for real-name card purchases, cashless card purchases, etc.
All responsibilities and obligations of prepaid card payment institutions as prepaid card issuers are not transferred as a result of sales agents.
Article 19 Prepaid card payment institutions shall own and independently operate an independent and secure prepaid card core business processing system within the People's Republic of China, establish emergency response mechanisms, and ensure the timeliness, accuracy of prepaid card business processing and the continuity, security and traceability of prepaid card business in accordance with mandatory national standards and relevant network and data security management requirements.
Article 20 Prepaid card payment institutions shall not issue or sell prepaid cards using the institutional identification code assigned by the clearing agency; shall not cooperate with other non-bank payment institutions to issue prepaid cards; and different prepaid card payment institutions shall not use uniformly identifiable brand logos.
Chapter III: Acceptance
Article 21 Prepaid card payment institutions shall provide acceptance services for prepaid cards issued by them, sign and manage special merchants on their own; they shall not entrust the processing of core business and technical services involving financial security, information security, etc. to a third party.
Article 22 A prepaid card payment institution shall agree with the cardholder on how to verify the transaction and verify the cardholder's payment transaction in accordance with the agreement.
Article 23 Where a prepaid card business shares an acceptance terminal with other payment services, an independent application and acceptance network shall be used, and safe isolation measures shall be taken for separate processing and management.
Prepaid card payment institutions should strengthen the management of receiving terminals (online payment interfaces) and take effective measures to ensure that they are used for legal compliance purposes.
Article 24 When expanding authorized merchants, prepaid card payment institutions shall follow the principle of “know your customer” to ensure that the authorized merchants they expand are merchants established in accordance with law and engaged in legal business activities, and must not develop special merchants that are illegally established, operate illegally, or have no physical place of business.
Prepaid card payment institutions shall implement real-name management for authorized merchants, strictly review their valid identity documents and application materials such as the valid identity documents of their legal representative or person in charge, keep copies or photocopies of relevant documents, and conduct on-site verification and photo storage of the merchant's place of business to ensure that the merchant's registered address and actual business address are within the operating region where the prepaid card payment institution is authorized to operate Class II stored value accounts.
Article 25 Prepaid card payment institutions shall ensure the integrity, consistency, traceability, auditability and immutability of prepaid card transaction payment instructions, and ensure the authenticity and compliance of relevant fund transfer matters. Prepaid card payment institutions shall transfer settlement funds directly to authorized merchants through clearing institutions determined by the People's Bank of China.
The authorized merchant's receipt account shall be the bank settlement account of the unit of the same name, or the bank settlement account of the unit designated by it that has a legal fund management relationship with the same brand chain operation, group management, etc. If the authorized merchant is an individual business, they can use their personal bank settlement account of the same name to receive payments.
Article 26 Prepaid card payment institutions shall sign prepaid card acceptance agreements with authorized merchants. The admissibility agreement shall include, but is not limited to, the following:
(1) Basic information on authorized merchants;
(2) Fee items and standards;
(3) Requirements for the protection of cardholders' card rights;
(4) Management requirements for card information, transaction data, acceptance terminals (online payment interface), and transaction vouchers;
(5) Authorized merchant account name, bank opening bank, account number and fund settlement cycle;
(6) Accounting checks, error handling, and business dispute resolution requirements;
(7) Relevant business risk taking and liability mechanisms for breach of contract;
(8) Terms of termination of the agreement and the method of settlement of claims and debts after termination.
Article 27 Prepaid card payment institutions shall record in the core business processing system information such as the name and business address of the authorized merchant, authorized merchant identity information, special merchant type, settlement fee standard, collection account information, opening time, acceptance terminal (network payment interface) type and installation address, etc., and update it in a timely manner.
Article 28. Authorized merchants can only return the funds to the original prepaid card through a prepaid card payment institution when processing a return to the cardholder. If it cannot be returned, the prepaid card payment institution shall return the funds to the same prepaid card of the same prepaid card payment institution provided by the cardholder.
The balance of funds on the prepaid card after the return is accepted must not exceed the specified limit.
Article 29 Prepaid card payment institutions shall assume responsibility for the management of authorized merchants, establish a risk rating and inspection system for authorized merchants, adopt corresponding risk management measures in conjunction with the risk levels of authorized merchants, and inspect, evaluate and continuously manage the preferential merchant's prepaid card acceptance behavior.
If the authorized merchant harms the parties' legal rights and interests or other serious violations of contract, the prepaid card payment institution shall immediately terminate its prepaid card acceptance service.
Article 30 Prepaid card payment institutions shall require authorized merchants to clearly indicate the names and types of prepaid cards accepted at the place of business; they shall not store prepaid card information unrelated to merchant settlement or reconciliation in any form, and shall not assist cardholders to cash out prepaid cards in any form.
Prepaid card payment institutions shall take effective measures to require authorized merchants to accept prepaid cards in accordance with the requirements of the prepaid card acceptance agreement and fulfill relevant obligations.
Chapter IV Use, Deposit, and Redemption
Article 31. Prepaid cards shall not be used or disguised for withdrawing cash; shall not be used or recharged to prepaid cards for purchase or exchange purposes, prepaid cards or other commercial prepaid cards not issued by this prepaid card payment institution; funds in the card shall not be transferred to a bank account or payment account established by a payment institution other than this prepaid card; in a single payment transaction, the one-time payment amount of the prepaid card shall not exceed 10,000 yuan.
Article 32. Prepaid cards shall not be used for online payment channels, except in the following circumstances:
(1) Paying utility bills;
(2) Use in self-operated online stores of authorized physical merchants expanded by this prepaid card payment agency;
(3) Prepaid card payment institutions that are also authorized to operate Class I stored value accounts may be recharged to real-name payment accounts opened by this prepaid card payment institution, but the total annual recharge amount for all payment accounts of the same customer shall not exceed 5,000 yuan. The prepaid card payment institution shall separately manage the balance of the prepaid card recharge to the payment account, and only use it for consumer transactions independently accepted by the prepaid card institution.
Prepaid card payment institutions should strengthen transaction risk management through online payment channels, reasonably agree with customers on the cumulative transaction amount for the day, the types of transaction verification factors, and use a combination of at least two factors to verify large transactions. Prepaid card payment institutions shall carry out special monitoring of the scope and transaction scale of authorized merchants that have activated the prepaid card network payment function, and promptly take risk prevention and control measures for abnormal situations.
Article 33 Where prepaid card payment institutions handle recharge services for registered prepaid cards or unregistered prepaid cards with a one-time amount of 10,000 yuan or more, they shall do so in accordance with the provisions of Article 10 of these Measures.
Article 34 In principle, prepaid card payment institutions shall process prepaid card recharges through physical outlets. Where it is really necessary to recharge a prepaid card through an online channel based on small-amount and convenient payment requirements in the public transportation sector, it shall be processed in accordance with the provisions of Article 17 of these Measures.
If you recharge a prepaid card with a one-time amount of 5,000 yuan or more, you should use a cashless payment method. Prepaid card payment institutions shall record information such as recharge account name and account number, recharge channel, payment time, payment amount, order number, cardholder name, and prepaid prepaid card number in the prepaid card core business processing system.
Credit cards may not be used to recharge prepaid cards. The balance of funds after recharging a single prepaid card must not exceed the specified limit.
Article 35. Cash recharge of a prepaid card shall be carried out through the physical outlets of a prepaid card payment institution, but if a single prepaid card has accumulated a cash recharge of 200 yuan or less on the same day, it can be recharged through self-service recharge terminals, sales partner agency agents, etc., and the collected cash shall be deposited into the prepaid card payment institution's provision account in accordance with regulations.
Article 36 Prepaid card payment institutions shall provide emergency cancellation services to registered prepaid cardholders and provide at least one 24-hour free emergency loss channel. Official cancellations and card replacements shall be processed within the agreed time through the physical outlets or self-operated online platforms of prepaid card payment institutions. The prepaid card payment institution shall check the cardholder's valid ID and complete the cancellation procedure as agreed in the agreement.
Prepaid card payment institutions shall provide cardholders with a list of authorized merchants, balance of funds in the card and transaction details within one year free of charge, and provide at least one 24-hour free inquiry channel.
Article 37 A registered prepaid card can be redeemed 3 months after the card is purchased. At the time of redemption, the cardholder shall present the prepaid card and the cardholder and the cardholder's valid identity documents. Where redemptions are made on behalf of another person, the agent and the agent's valid ID must be presented at the same time. Registered prepaid cards purchased by the unit can only be redeemed by the unit. Prepaid card payment institutions shall refer to the provisions of Article 10 of these Measures to identify and check the identity information of the redeemer and agent, ensure that it is consistent with the identity information of the cardholder and the cardholder registered at the time of card purchase, and keep redemption records.
An unregistered prepaid card that can be used in the field of public transportation. If the balance on a single card is less than 100 yuan, it can be redeemed in accordance with paragraph 1 of this section.
Article 38 Where a prepaid card payment institution terminates the prepaid card business in accordance with regulations, it shall redeem all registered and unregistered prepaid cards issued free of charge to the cardholder.
Where an unregistered prepaid card is redeemed, the prepaid card payment institution shall verify and register the cardholder's identity information. A prepaid card using a password verification method shall also verify the password and keep a redemption record.
Article 39 Prepaid card payment institutions shall handle prepaid card redemption services through physical outlets or self-operated online platforms. The number of outlets that handle redemptions should not be less than 70% of the number of outlets that handle distribution and sales services. The business hours of the prepaid card redemption business shall not be shorter than the business hours of the issuing and sales business.
Article 40. Prepaid card redemptions shall use non-cash payment methods, and the prepaid card payment institution shall refund the redemption funds to the original payment account. If the purchase was made in cash or the original payment account cannot be used properly, the redemption funds shall be refunded to the bank account of the unit or individual with the same name as the cardholder provided by the cardholder.
If the redemption amount for a single prepaid card is less than 100 yuan, cash can be used.
Article 41 Prepaid card payment institutions shall accurately and completely label transaction information, ensure traceability of transaction information, and must not conceal or tamper with transaction information. Transaction information includes at least the transaction type, transaction channel, transaction amount, transaction time, payee information, etc.
Article 42 Prepaid card payment institutions shall strictly implement the provisions of non-bank payment institutions, deposit the full amount of the received provisions directly into the provision account, ensure the safety and integrity of the customer's provisions, and safeguard the legitimate rights and interests of customers.
The special deposit account for prepaid card provisions is only used to receive the customer's card purchase and recharge funds. All funds in the account shall be promptly deposited into the centralized reserve account in accordance with regulations. Prepaid card payment institutions shall manage accounts such as registered own fund accounts and special deposit accounts for prepaid card reserves separately.
Article 43 Prepaid card payment institutions shall establish and improve risk monitoring mechanisms for the entire prepaid card business process, continuously carry out risk monitoring, and actively screen suspicious transactions such as prepaid card cashing, money laundering, terrorist financing, and fraud.
If a prepaid card payment agency discovers a suspected risk, it shall promptly take effective measures with the relevant transaction, prepaid card or special merchant; if it discovers suspected illegal or criminal activity, it shall promptly report the case to the public security authorities.
Article 44. Relevant information obtained and generated by prepaid card payment institutions processing prepaid card issuance business activities shall be kept for at least 5 years after the full settlement of RMB funds received by the prepaid card; relevant information obtained and generated from business activities such as acceptance, use, recharge, and redemption of prepaid cards shall be kept for at least 5 years after the termination of the business activity.
Where laws or administrative regulations require a longer storage period for user identification data and transaction records, their provisions shall apply.
Chapter V: Supervision and Management
Article 45 The People's Bank of China and its branches shall supervise and manage Class II operations of stored value accounts in accordance with law, and establish and improve on-site inspection and off-site supervision mechanisms.
When the People's Bank of China and its branches perform their duties in accordance with law, prepaid card payment institutions shall cooperate.
Article 46 Provisions Supervisory Authority and Reserve Bank shall supervise the deposit, use, and transfer of prepaid card payment institutions' provisions in accordance with provisions for non-bank payment institutions, and improve monitoring and supervision mechanisms for transactions involving provisions.
Article 47 The China Payment and Clearing Association shall self-regulate the operation of Class II operations of prepaid card payment institutions' stored value accounts.
Article 48 Whoever engages in or disguises the operation of a type II stored value account without legal approval shall be banned by the People's Bank of China and its branches, together with the relevant departments, in accordance with the law, under a working mechanism to prevent and combat illegal financial activities.
Chapter 6 Legal Liability
Article 49 Where a person engages in or disguises a Class II business of stored value account operations without legal approval, the People's Bank of China and its branches shall deal with it in accordance with the provisions of Article 47 of the “Regulations on the Supervision and Administration of Non-bank Payment Institutions”.
Article 50 Where a prepaid card payment institution violates the provisions of these Measures and has any of the following circumstances, the People's Bank of China and its branches shall deal with it in accordance with the provisions of Articles 49 and 55 of the “Regulations on the Supervision and Administration of Non-Bank Payment Institutions”:
(1) Failure to establish, improve, or implement systems such as prepaid card funding limits and logo code restrictions, prepaid card issuance, sale and recharge, cashless card purchases and recharges, and prepaid card use, loss, and redemption in accordance with regulations;
(2) Failure to establish, improve or implement consignment risk control mechanisms, emergency response mechanisms, etc. in accordance with regulations;
(3) Failure to establish, improve or implement user rights protection mechanisms such as informing card purchasers of relevant matters and providing relevant inquiry services to cardholders in accordance with regulations;
(4) Failure to publicize relevant matters in accordance with regulations;
(5) Failure to store relevant information obtained or generated from business activities such as issuing, accepting, using, recharging, and redemption of prepaid cards in accordance with regulations;
(6) Business systems, facilities, or technology related to prepaid cards do not comply with administrative regulations.
Article 51 Where a prepaid card payment institution violates the provisions of these Measures, the People's Bank of China and its branches shall deal with it in accordance with the provisions of Articles 50 and 55 of the “Regulations on the Supervision and Administration of Non-Bank Payment Institutions”:
(1) Prepaid card sales or recharge funds were not deposited into the prepaid card payment institution's provision account in accordance with regulations;
(2) Failure to carry out business activities such as due diligence investigation of authorized merchants, signing of prepaid card acceptance agreements, processing fund settlement, risk rating of authorized merchants, and carrying out special merchant inspections and risk monitoring in accordance with regulations, and failure to take risk management measures in accordance with regulations;
(3) Entrust core business or related technical services to a third party;
(4) Failure to terminate the prepaid card business in accordance with regulations.
Article 52 Where a prepaid card payment institution violates the provisions of these Measures, the People's Bank of China and its branches shall deal with it in accordance with the provisions of Articles 51 and 55 of the “Regulations on the Supervision and Administration of Non-Bank Payment Institutions”:
(1) Prepaid card payment institutions fail to operate Class II stored value accounts in accordance with the payment business type and business geographical scope specified in the payment business license;
(2) Refusing, obstructing, or evading inspection or investigation, or falsely reporting, concealing, or destroying relevant documents, data, or business systems.
Article 53 Where a prepaid card payment institution violates the provisions of these Measures and constitutes a crime, it shall be prosecuted for criminal liability in accordance with law.
Article 54. Staff members of the People's Bank of China and its branches who fail to perform their duties and responsibilities in supervising the operation of Class II stored value accounts and cause significant losses, serious consequences or adverse effects shall be seriously prosecuted and held accountable according to law and regulations; they neglect their duties or disclose state secrets, trade secrets, or personal information known in the course of carrying out their duties shall be punished in accordance with law, and criminal liability shall be investigated in accordance with law.
Chapter 7 Supplementary Provisions
Article 55. Terms related to these Measures have the following meanings:
Branches of the People's Bank of China referred to in these Measures refer to the Shanghai headquarters of the People's Bank of China, branches in each province, autonomous region, municipality directly under the Central Government, and planned separate municipalities.
An entity authorized merchant referred to in these Measures refers to an operating entity that provides goods or services through an entity's place of business.
Non-cash payment methods referred to in these Measures refer to payment methods other than cash, including but not limited to bank account transfers, bank card payments, mobile payments, and online payments.
A self-operated network platform referred to in these Measures refers to a network platform established by a prepaid card payment institution that operates independently and enjoys full data rights according to business needs, including official websites, mobile Internet applications, etc.
The prepaid card core business processing system referred to in this measure includes but is not limited to card issuing systems, account hosting systems, card management systems, customer information management systems, authorized merchant information management systems, business risk prevention and control systems, and client software related to virtual prepaid card business.
The primary supervisory authority or provision bank referred to in these Measures refers to a clearing institution or commercial bank that performs the responsibility of managing provisions in accordance with provisions depository regulations of non-bank payment institutions.
A special deposit account for prepaid card provisions and a centralized reserve deposit account referred to in these Measures refers to accounts specially set up by prepaid card payment institutions to store customer provisions in reserve banks and the People's Bank of China, respectively, in accordance with the provisions of non-bank payment institutions. Special deposit accounts for prepaid card reserves and centralized reserve accounts are collectively referred to as reserve accounts.
“Above,” “below,” “not more than,” and “not less than” referred to in these Measures include the number of copies.
Article 56: The People's Bank of China shall be responsible for interpreting these Measures.
Article 57 These Measures shall take effect on XX, XX. The “Administrative Measures on Prepaid Card Business of Payment Institutions” (People's Bank of China Notice [2012] No. 12) was also abolished.
Article 21 of these Measures establishes a transition period of 2 years from the date of implementation of these Measures. Prepaid card payment institutions should complete relevant business adjustments during the transition period.
《Stored Value Account Operation Class II Business Management Measures
(Draft for Solicitation of Comments)” Drafting Instructions
In order to establish a supporting system for the “Regulations on the Supervision and Administration of Non-bank Payment Institutions” (Order No. 768 of the State Council of the People's Republic of China, hereinafter referred to as the “Regulations”) and regulate the management of Class II operations of stored value accounts, the People's Bank of China organized the “Administrative Measures on Class II Business of Saved Value Account Operations (Draft for Comments)” (hereinafter referred to as the “Measures”). The relevant situation is described below.
I. Drafting Background and Necessity
In May 2024, the Regulations were officially implemented. The Regulations are based on the concept of functional supervision and management, and according to the essence of the business, the payment business is divided into two categories: stored value account operation and payment transaction processing. In order to better connect the supporting systems of the Regulations, the People's Bank of China revised and improved the current system and organized the drafting of the “Measures” for the operation of Class II stored value accounts, based on a comprehensive review of the “Measures for the Administration of Prepaid Card Business by Payment Institutions” (People's Bank of China Notice (2012) No. 12), taking into account actual business and regulatory needs, and organized the drafting of the “Measures”.
(1) The promulgation of the Measures is an inevitable requirement for implementing the Regulations. The Regulations and implementing rules reclassify payment services, classify the issuance and acceptance of prepaid cards as a Class II business for stored value account operations, and put forward basic business requirements. As one of the supporting systems of the Regulations, the “Measures” clarify the specific rules for the operation of Class II stored value accounts and ensure that the requirements of the Regulations are implemented in detail.
(2) The “Measures” are institutional guarantees for promoting the healthy development of Class II stored value account operations. With the development of the prepaid card business, some new situations have emerged in the market, including innovative practices for convenience and benefit, as well as irregularities and risk incidents. In this regard, it is necessary to adapt and improve the regulatory system in line with the development trends and hidden risks of the prepaid card business, create a favorable policy environment, and promote the healthy and orderly development of the prepaid card industry.
II. General framework and main contents of the Measures
The Measures are divided into seven chapters and 57 articles.
(1) General Provisions. The first is basic content such as the purpose and basis of the legislation, scope of application, and definitions; the second is the general principles and risk management requirements for non-bank payment institutions to operate Class II stored value accounts.
(2) Issuance. The first is the classification of prepaid cards and their limits, loss, and redemption requirements; the second is the essential recording elements for physical and virtual cards; the third is the relationship between the purchaser and the payer, the real name and registration requirements, payment methods and limit requirements; the fourth is the management requirements of prepaid card regulations or agreements; the fifth is the obligation of prepaid card payment institutions to protect the information of the cardholder; the sixth is the administrative requirements for prepaid card issuance channels, online card recharge and prepaid card consignment; and seven are the requirements for prepaid card core business processing systems and prepaid card labeling requirements.
(3) Acceptance. The first is the requirements for card issuers to accept themselves, geographical restrictions, etc.; the second is the requirement for the independence of the transaction verification and acceptance system; the third is the provision of special merchant qualification review, fund settlement, and acceptance agreements; and the fourth is to accept requirements such as business risk prevention, return of funds, merchant risk management, and merchant liability.
(4) Use, recharge, and redemption. The first is the restrictions on the use of prepaid cards; the second is the requirements for recharge channels, fund limits, recorded information, etc.; the third is the requirements related to loss, inquiry, redemption, transaction information, provision management, risk prevention, and information storage time limits for prepaid cards. (5) Supervision and management. The first is the responsibility of the People's Bank of China to carry out supervision in accordance with the law; prepaid card payment institutions cooperate with the People's Bank of China's requirements to implement supervision; the second is the responsibility requirements of clearing agencies, reserve banks, industry associations, and other relevant entities; and third, the requirement to crack down on illegal financial activities in accordance with the law.
(6) Legal liability. Matters such as illegal penalties, transfer of suspected crimes, supervisory responsibilities, etc.
(7) Supplementary Provisions. The first is the meaning of terms such as branches of the People's Bank of China, cashless payment methods, and self-operated online platforms; the second is the transition period and implementation date of the “Measures”.
III. Drafting process
In the process of drafting the “Measures”, the People's Bank of China solicited opinions from relevant departments, branches of the People's Bank of China, clearing agencies, industry associations, representative payment institutions, etc. through various methods such as special research, written comments, and holding symposiums, based on new developments and issues in the prepaid card market, and adopted most of these opinions.
This article was selected from the official website of the “People's Bank of China”, Zhitong Finance Editor: Feng Qiuyi.