Overview: Visa has clarified its rules to support the distribution of corporate-funded Visa prepaid cards by an issuer outside its country of issuance for multinational corporations.
Visa has clarified its rules to support the distribution of corporate-funded Visa prepaid cards (e.g., corporate disbursement, incentive, payroll / salary, commercial, etc.) by an issuer outside its country of issuance for multinational corporations.
These updates will enable issuers to provide clients who have operations in different countries with a single solution to disburse funds effectively to their employees and customers using prepaid cards.
Effective 20 January 2018, an issuer authorized to distribute Visa prepaid cards outside its country of issuance must:
• Limit such distribution to prepaid products that are funded solely by a multinational corporation
• Be licensed to issue Visa cards in the country in which the multinational corporation is headquartered
• Obtain prior written approval from Visa for each Visa prepaid card program enabled for distribution in a different country
• Not engage in any activity that amounts to active solicitation and issuance outside the countries in which it holds a Visa license •
Ensure compliance with local laws and regulations in each country of distribution
• Ensure that at least 50 percent of the Visa prepaid cards issued to the multinational corporation are distributed in countries where the issuer holds a Visa license To simplify the rules further, effective 20 January 2018, issuers are no longer required to ensure that:
• No more than 25 percent of the multinational corporation’s revenue is derived from activities outside the country in which the participating issuer is located
• The number of multinational corporation’s employees residing outside the country in which the participating issuer is located does not exceed 25 percent of its overall employee count Note: Rule changes will apply to new programs and do not affect existing prepaid card programs