Nature of Non-Bank Credit Cards

What requirements are non-bank credit cards or charge cards issuers subject to under the Payment Services Act?


  • According to MAS (FAQs)
    last revised on 31 March 2021

    Non-bank credit card issuers need to comply with the requirements in the Payment Services Act that do not overlap with those in the Banking Act.

    Such requirements relate mainly to (a) ensuring interoperability as well as (b) e-payments user protection.

    The PS Act grants MAS formal powers to enforce interoperability of payment solutions in the interests of consumers and market development. However, MAS will continue to engage payment players to improve interoperability before using the interoperability powers under the PS Act.

    MAS has developed a set of E-Payments User Protection Guidelines that set out the best practice standards for non-bank credit card issuers. They are expected to provide timely transaction notifications to users, as well as investigate, assess and provide compensation for, where applicable, claims of unauthorised transactions in a timely manner. Where an account holder of a protected account suffers a loss from an unauthorised transaction resulting from any action or omission by the responsible FI, the responsible FI is expected to bear the entire loss. On the other hand, where an account holder of a protected account suffers a loss from an unauthorised transaction resulting from any action or omission of an independent third party, the account holder is not liable for any loss where the transaction amount does not exceed $1,000. For transactions exceeding $1,000, the responsible FI should investigate further and may offer to reduce the account holder’s liability on a case-by-case basis.