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ID 997. E-money Back

Relevant provisions

General question on Directive 2007/64/EC
General question on Directive 2009/110/EC


Is it correct to say that one of the necessary characteristics of electronic money is that an electronic money holder must be able to top-up the value of the electronic money?


 As stated in the recital (10) of the E-Money Directive 2009/110/EC (EMD):

"It is recognised that electronic money institutions distribute electronic money, including by selling or reselling electronic money products to the public, providing a means of distributing electronic money to customers, or of redeeming electronic money on the request of customers or of topping up customers’ electronic money products, through natural or legal persons on their behalf, according to the requirements of their respective business models."
Furthermore, the definitition from article 2(2) of the EMD provides that: "‘electronic money’ means electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transactions as defined in point 5 of Article 4 of Directive 2007/64/EC, and which is accepted by a natural or legal person other than the electronic money issuer".
Considering these two provisions, an e-money institution, depeding on its buisness model can choose to provide only one of the following services: distribute, redeem or top up electronic money or all of them.


Submitted on 03/02/2011

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Asset management
Capital Requirements Directives (CRD)
Markets in Financial Instruments Directive
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