Paysafecard is an electronic payment method for predominantly online shopping and is based on a pre-pay system. Paysafecard is based in Vienna, Austria and has been in existence since 2000. Exchanging cash for Electronic Money (for use online) is facilitated through paysafecard in many countries worldwide.
Since 2006 paysafecard has been involved with the eTEN programme (Project description) promoted by the European Union.
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Buying with cash at online stores is gradually becoming more commonplace with the emergence of services like paysafecard. Historically, most web shops have only accepted card payments for online purchases. For the majority of online consumers card payments are simple and convenient, while web shops are reassured by obtaining an immediate payment authorisation from the consumer's card issuer.
However, many consumers are concerned about entering their financial details online while shopping, and in some cases consumers simply don't have a credit card to use online. In these cases the ability to use cash online can be beneficial to web merchants and their customers.
In order to purchase a Paysafecard in the UK, customers pay cash (£10, £25, £50 or £75) at any retailers linked to PayPoint and thus receive a secure 16 digit PIN printed on a card. In other countries paysafecards are mostly available at newsagents, petrol stations, chemists or kiosks. When paying in an online shop, the user enters the 16 digit number and the amount tendered is deducted from the paysafecard balance. For larger sums it is possible to combine up to ten Paysafecard PINs up to a total amount of £1.000.[1]
Twelve months after purchasing a paysafecard for the first time, and no later than 24 months after the production date printed on each card, customers will be charged an administrative fee of ₤2 per month, which will be automatically deducted from their credit. [2]
The current balance of each paysafecard as well as its transaction history and production date can also be viewed at the official site by entering the respective 16 PIN code.
Paysafecards are normally sold as eVouchers (uniquely numbered receipts from in-store sales terminals) in Argentina, Austria, Belgium, Cyprus, the Czech Republic, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland and the United Kingdom. According to paysafecard.com, there are over 280,000 sales terminals worldwide. [3]
Further, there are more than 3,500 webshops accepting paysafecard from across the world. Those fall mainly into the following categories: online games/gaming (including browser games, skill games, community games), music download sites, telecommunication services, gambling sites and travel. [4]
Paysafecard.com Limited is an electronic money institution authorised and regulated by the Financial Services Authority in the United Kingdom FSA Register Details (Register number: 475502). The Financial Services Authority’s Register can be accessed through www.fsa.gov.uk/register [5]
Paysafecard is permitted to issue electronic money in all 28 European Economic Area countries under "The Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001" FSA Passport Details.