Payment services: Account issuance service
When is an account issuance service provider also considered a merchant acquisition service?
According to MAS (FAQs)
last revised 31 March 2021
14.1 As mentioned in Table 1 of the Consultation Paper on Proposed Payment Services Bill, an entity provides merchant acquisition services where the entity enters into a contract with a merchant to accept and process payment transactions, which results in a transfer of money to the merchant. Usually the service includes providing a point of sale terminal or online payment gateway.
14.2 A payment service provider that operates a closed-loop e-money account issuance service, where transactions can only take place between users of the particular e-money accounts issued by the payment service provider, may also be providing a merchant acquisition service if one of the users is a merchant and there is the requisite contractual relationship mentioned above.