The South African Reserve Bank (SARB) now wants to change this. It has proposed new rules that would treat many gift cards more like financial products.<\/p>\n\n\n\n
The draft directive introduces the idea of a \u201cclosed-loop payment system.\u201d This is when the same company provides the service on both sides of the transaction, and the card or voucher cannot be used across other systems.<\/p>\n\n\n\n
According to ENSafrica, examples include mobile-money vouchers and store-of-value wallets, which are very similar to many retail gift cards.<\/p>\n\n\n\n
Under the proposal, anyone running such a system would need to register with the SARB and meet strict rules on risk management, operations, and compliance.<\/p>\n\n\n\n
Gift cards that work across multiple merchants, such as shopping-centre cards or airline-alliance vouchers, are even more clearly in the line of fire. <\/p>\n\n\n\n
ENSafrica explained that these will likely be classed as \u201cpayment instruments,\u201d which means they fall directly under SARB regulation. <\/p>\n\n\n\n
Even single-store vouchers could be treated the same way if SARB decides they involve \u201cstoring value\u201d or transferring money by taking cash upfront and allowing later redemption.<\/p>\n\n\n\n
This would also change how consumer-protection law applies. Section 10 of the Financial Sector Regulation Act says the CPA does not apply if a product falls under financial regulation.<\/p>\n\n\n\n
Two new regimes <\/h2>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/09\/ENSafrica-1024x576.jpg\")
<\/a><\/figure>\n\n\n\nENSafrica noted that once the new rules are in place, some gift cards will move out of the CPA\u2019s protection and into SARB\u2019s system. This would create two regimes.<\/p>\n\n\n\n
On the one hand, simple loyalty vouchers or gift cards for one merchant will stay under the CPA, with the same protections as before.<\/p>\n\n\n\n
On the other hand, cards that allow redemption at multiple merchants, top-ups, transfers between people, or cash-outs will need SARB registration.<\/p>\n\n\n\n
These products will face transaction limits of R5,000 a day or R50,000 a month, and issuers will have to keep client money separate from their own funds.<\/p>\n\n\n\n
For businesses, the changes could be significant. ENSafrica said issuers of regulated gift cards will have to apply to become \u201cpayment institutions,\u201d set up ring-fenced trust or settlement accounts, and submit to Reserve Bank supervision.<\/p>\n\n\n\n
They will also fall under anti-money laundering rules. Draft PCC 118A lists issuers of payment instruments as \u201caccountable institutions,\u201d meaning they must check customer identities, monitor transactions, and report suspicious behaviour.<\/p>\n\n\n\n
This could force companies to rethink how they offer gift cards. ENSafrica warned that the ability to earn interest on money collected from cards, to allow cash-outs, or to let users reload cards may be limited unless businesses get further approvals or redesign their products to remain under the CPA\u2019s simpler rules.<\/p>\n\n\n\n
The SARB\u2019s goal is to reduce fragmentation in South Africa\u2019s payment system. Closed-loop products, which lock customers into small, isolated systems, are seen as a problem.<\/p>\n\n\n\n
While not every voucher will need authorisation, ENSafrica said the rules are tightening. \u201cIssuers must ask whether funds can move beyond a single merchant. If they can, SARB registration and compliance obligations will follow.\u201d<\/p>\n\n\n\n
This means a large part of the gift card industry is likely to be subject to direct Reserve Bank regulation. <\/p>\n\n\n\n
Businesses that want to keep things simple will need to design gift cards that work only at a single merchant and cannot be transferred.<\/p>\n\n\n\n
Those that want broader, more flexible cards will have to prepare for the costs and compliance requirements of becoming regulated payment institutions.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Reserve Bank wants to regulate gift cards, allowing them to be issued and used only at a single merchant and making them non-transferable.<\/p>\n","protected":false},"author":92,"featured_media":836917,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[10175,853,20457],"class_list":["post-836888","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-ensafrica","tag-south-africa","tag-south-african-reserve-bank-sarb"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/836888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=836888"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/836888\/revisions"}],"predecessor-version":[{"id":836921,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/836888\/revisions\/836921"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/836917"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=836888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=836888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=836888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/a><\/figure>\n\n\n\nENSafrica noted that once the new rules are in place, some gift cards will move out of the CPA\u2019s protection and into SARB\u2019s system. This would create two regimes.<\/p>\n\n\n\n
On the one hand, simple loyalty vouchers or gift cards for one merchant will stay under the CPA, with the same protections as before.<\/p>\n\n\n\n
On the other hand, cards that allow redemption at multiple merchants, top-ups, transfers between people, or cash-outs will need SARB registration.<\/p>\n\n\n\n
These products will face transaction limits of R5,000 a day or R50,000 a month, and issuers will have to keep client money separate from their own funds.<\/p>\n\n\n\n
For businesses, the changes could be significant. ENSafrica said issuers of regulated gift cards will have to apply to become \u201cpayment institutions,\u201d set up ring-fenced trust or settlement accounts, and submit to Reserve Bank supervision.<\/p>\n\n\n\n
They will also fall under anti-money laundering rules. Draft PCC 118A lists issuers of payment instruments as \u201caccountable institutions,\u201d meaning they must check customer identities, monitor transactions, and report suspicious behaviour.<\/p>\n\n\n\n
This could force companies to rethink how they offer gift cards. ENSafrica warned that the ability to earn interest on money collected from cards, to allow cash-outs, or to let users reload cards may be limited unless businesses get further approvals or redesign their products to remain under the CPA\u2019s simpler rules.<\/p>\n\n\n\n
The SARB\u2019s goal is to reduce fragmentation in South Africa\u2019s payment system. Closed-loop products, which lock customers into small, isolated systems, are seen as a problem.<\/p>\n\n\n\n
While not every voucher will need authorisation, ENSafrica said the rules are tightening. \u201cIssuers must ask whether funds can move beyond a single merchant. If they can, SARB registration and compliance obligations will follow.\u201d<\/p>\n\n\n\n
This means a large part of the gift card industry is likely to be subject to direct Reserve Bank regulation. <\/p>\n\n\n\n
Businesses that want to keep things simple will need to design gift cards that work only at a single merchant and cannot be transferred.<\/p>\n\n\n\n
Those that want broader, more flexible cards will have to prepare for the costs and compliance requirements of becoming regulated payment institutions.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Reserve Bank wants to regulate gift cards, allowing them to be issued and used only at a single merchant and making them non-transferable.<\/p>\n","protected":false},"author":92,"featured_media":836917,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[10175,853,20457],"class_list":["post-836888","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-ensafrica","tag-south-africa","tag-south-african-reserve-bank-sarb"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/836888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=836888"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/836888\/revisions"}],"predecessor-version":[{"id":836921,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/836888\/revisions\/836921"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/836917"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=836888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=836888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=836888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}