Research Of Law For Prepaid Card Business Regulations

Prepaid card as a tool for small payment is widely used in many countries and regions,for its features of convenient to consumer and helpful in boosting consumption. At the sametime, due to its credit and no-cause characters, prepaid card business also brings risks andchallenges, such as risks on financial security and consumers’ rights and interests. To preventthe prepaid card business risk, and make sure that the prepaid card industry runs healthy,many countries regulate prepaid card business by law. In countries and regions which theprepaid card business is relatively prosperous and mature, such as Japan, the United States,the European Union, the laws for prepaid card risks regulation are relatively perfect.Generally speaking, these laws regulate prepaid card business and prevent its risks by ways,such as, setting conditions on prepaid card market access, limiting the scale of prepaid cardissuing and the access of money prepaid by customer, supervising the cash flow in prepaidcards business. Their practices provide us experience in legislation to regulate prepaid cardbusiness.In China, the prepaid cards were prohibited for many kinds of possible risks brought byprepaid card business in past years. In recent years, to stimulate domestic demand anddevelop economy, the government’s attitude to prepaid card transformed from ban to permit,meanwhile regulating it. As the explosive growth of prepaid card business, the risks andchallenges brought by it also become increasingly significant. How to use to regulate thebehavior of the prepaid card business market, prevent risks brought by it, promote theprepaid card business has become necessary. At present, in the reference of foreignexperience, combining with our current legal system, the legal framework of prepaid cardbusiness regulation has been constructed, basic legal measures has been established, such assetting conditions for prepaid card market access, limiting the scale of prepaid card issuingand the access of money prepaid by customer, measures for cash flow supervision but becauseof the idea of the rule of law missing in prepaid card management, our laws of prepaid cardbusiness regulation is lack of system and coordination, the specific measures also have manydefects. These problems finally result in the laws’ lack of authority, normative and effective.To change this status and prevent the risks brought by prepaid card business effectively, we should regulate prepaid cards business in the rule of law, improve related legislation, perfectthe specific measures design.