Compliance with the Electronic Financial Transactions Act, the core of prepaid electronic payment services operation.

Law firm Veat received a request from a B2E platform (hereinafter referred to as "client") and reviewed the registration status of the company issuing and managing various types of prepaid payment methods.

Prepaid payment methods are payment methods where customers charge a certain amount in advance and use it, and are widely used for various corporate services. However, these methods are subject to financial regulatory authorities, so it is necessary to clearly determine the registration status according to the “Electronic Financial Transaction Act”.

The client was operating a business issuing and managing various prepaid payment methods, including welfare points, and supporting users in using them at various merchants. While conducting these services, it was necessary to review whether the registration obligation or exemption possibility may vary depending on the structure and usage method of the prepaid payment method, and they contacted Law firm Veat, a law firm specializing in e-commerce.

Law firm Veat accurately grasped this by reviewing each type of prepaid payment method individually and specifically presented the legal requirements that the client must comply with.

Some of the client’s prepaid payment methods were operated in a structure where users pay the price in advance, and we confirmed the possibility of applying the registration obligation according to the “Electronic Financial Transaction Act.”

Furthermore, other prepaid payment methods were operated in a way that users did not pay the price in advance, and we carefully reviewed whether there was a possibility of exemption from the registration obligation by fulfilling specific conditions such as joining a payment guarantee insurance, and whether the exemption requirements were met.

With the expansion of e-commerce and selective welfare systems, prepaid payment methods have become an important business tool for companies.

As an important element for stable business operation and success, companies operating prepaid payment methods in accordance with the “Electronic Financial Transaction Act” must accurately determine the obligation to register as a prepaid business operator and thoroughly review and prepare legal requirements in advance.

Based on the experience and expertise accumulated in the electronic financial transaction field, Law firm Veat has a deep understanding of the electronic financial transaction act and provides support to various companies to minimize legal risks and grow their businesses.

If you need legal advice regarding prepaid payment methods, please contact Law firm Veat.

Thank you.

Sincerely, Law firm Veat