Prepaid cards allowed
only for bank customers
Central Bank amends total ban
The Central Bank (BDL) has decided to allow banks to issue prepaid cards provided they are tied to a bank account and issued in the name of a specific person. These include cards such as those linked to the account of customers and issued in their names or in the name of one of their family members. They also include prepaid cards such as those issued upon the request of employers for the payment of salaries and worker allowances.
The ruling, released through intermediate circular 418, also permits international organizations to issue prepaid cards, after obtaining BDL’s approval, if the cards are intended for use in social and humanitarian assistance locally.
BDL’s new ruling amends an earlier one released in March that prohibited banks from issuing or marketing prepaid cards. The decision, announced through intermediate circular 415, did not specify the parties that will be excluded from the ban on the issuance of prepaid cards. The concerned parties have to settle the problem of existing prepaid cards by Sept. 30, 2016.
Reported by Shikrallah Nakhoul
Date Posted: May 03, 2016