IPA IP 2023 Question 22

A question IPA Japan published in 令和5年度 ITパスポート試験公開問題問22, translated into English. ITPEC is based on the same exams.

Which of the following corresponds to a prepaid payment instrument under the Payment Services Act?

a)A service that enables bank transfers and remittances from a deposit account on a websiteb)Crypto assets that can be used as electronic currency on the Internetc)Gift certificates with no expiration date that can be used in common at department stores, shops, and other such places nationwided)Points that are granted at the time of purchasing products at a store or other such place, and that can be used as payment for the next purchase at the same store

Explanation

Gift certificates with no expiration date, usable at stores nationwide — Japan's Payment Services Act treats value that a customer pays for in advance and later uses to pay for goods as a prepaid payment instrument.

Under the Act a prepaid payment instrument is a certificate, card or electronic record of an amount or quantity, issued against payment, that can be used to pay for goods or services. Gift certificates, prepaid cards and prepaid electronic money are typical. The issuer must report or register and protect the unused balance, but instruments valid for six months or less are exempt, so certificates with no expiration date are clearly covered.

Answer (c)

Why not others:

•(a) — transferring and remitting money from a deposit account is a bank's exchange business (or, for non-banks, funds transfer), not value bought in advance
•(b) — crypto assets are regulated by the same Act, but as a separate category with their own exchange providers, not as prepaid payment instruments
•(d) — points given free as a bonus on a purchase are not paid for, so they are a sales premium, not a prepaid payment instrument

Key rule: A prepaid payment instrument is value the customer pays for first and spends later at the issuer or its partner stores; free points, bank transfers and crypto assets fall outside it.

Legal Affairs · AI-written, may contain errors

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This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.