France - New rules for issuers of cards to legal person under public law

A decree of 27 March 2023 has just clarified the rules applicable to the use of payment cards by public entities.

 

In application of these provisions, public entities (legal persons under public law with a public accountant) may use the payment card known as the "purchasing card" as a means of carrying out public expenditure and distribute it to their agents.

The card may be used for transactions outside the public market for expenses defined by order of the Minister responsible for the budget.

The card may also be used for public contracts, with the exception of (i) works contracts - unless the purchase is motivated by the need for routine maintenance and repairs that do not require capitalisation, (ii) contracts leading to the recording of purchases in stock accounts, and (iii) contracts requiring an advance payment.

The text thus provides for specific provisions to be included in the contracts concluded between the card issuer and the public entity regarding the implementation of the service, the transaction records or the conditions for authorising transactions.

Payment Service Providers (PSPs) should therefore ensure that their contracts and processes comply with the provisions on card issuance and use when offering their services to public entities.

Our experts are available to assist you with this review.

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