Creating Retail Prepaid Loyalty Card

[Paul Kelly ICHYB]

I am working on a loyalty card project and one of the add on ideas is to allow the retailer to offer clients to add money to their card to allow payment, similar to schemes operated by the likes of Starbucks.

The retailer will manage the transaction and take the funds (no third party involved) - will this fall into credit regulations or some other red tape, or is it an easy transaction/offer?

 

[Frank Wessely]

I am working on a loyalty card project and one of the add on ideas is to allow the retailer to offer clients to add money to their card to allow payment, similar to schemes operated by the likes of Starbucks.

The retailer will manage the transaction and take the funds (no third party involved) - will this fall into credit regulations or some other red tape, or is it an easy transaction/offer?

Hi @Paul Kelly ICHYB

Easy, no.

I think the retailer may have to consider its position under the Payment Services Regulations 2017, notifying the FCA that it is relying on permitted exclusion(s) from the Payment Services Directive 2 or may also require authorisation from the FCA under the Electronic Money Regulations 2011. Good luck.

Thanks.

 

[Paul Kelly ICHYB]

Wow, it started easy...!

Thanks, Frank.