cadooz News

The Prepaid Association of Germany (PVD)


Established in June 2011, the Prepaid Association of Germany is an industry association that represents the interests of the prepaid industry in Germany. Its members currently* include 23 companies from the fields of prepaid payment, processing, card organizations, providers of loyalty systems, and distributors of prepaid payment products in the retail sector. The PVD's aim is to give the association a voice, to inform about the interests of the prepaid sector, to represent the sector and to educate about current and statutory developments. In addition, it is a point of contact, including for politicians, supervisory authorities, other authorities, and the public.

It also performs this role in the annual Prepaid Congress. Here, members, interested parties, and the public can engage in an intensive exchange of ideas on topics relevant to the sector and current issues.

cadooz and the PVD
As one of eight founding members, cadooz and our sister company epay are still represented in the PVD's Executive Board by Volker Patzak (Director of European Content Development for epay & cadooz) in his role as an Executive Board member. For us and our partner brands, he turns his attention here in particular to the changing environment for our prepaid products as a result of changes in the law. The aim is to detect such changes early, to lobby and thus to contribute to appropriate solutions.

Current changes:
The PVD regularly provides information (in German) on current changes and developments, and on topics from the prepaid sector that are relevant to the industry on its website:

These are among others:

  • Changes to the €44 tax-free threshold
    The PVD is certain that the change to the €44 tax-free threshold for prepaid cards would curtail a significant tax saving by the employer. Previously, employers were able to provide their employees with tax-free non-cash benefits in the form of prepaid cards up to a monthly value of €44. The prerequisite for this is that this sum cannot be redeemed as cash, but can only be used to purchase goods and services. The German Federal Ministry of Finance now wants to further restrict this and not to permit gift cards to count as non-cash benefits if these can be used at more than one retailer. The PVD takes a very critical view of this change. It's prepared a modification proposal on this matter and presented it to the Federal Ministry of Finance.

  • Amendment of the Directive on the Common System of Value Added Tax
    The PVD is also exploring the amendments to sales tax law on the sales tax on gift cards that concern the direct taxation of certain types of gift card directly on issue and is thoroughly dealing with the topic, including through articles and a commentary.

Want to find out more about our prepaid products and how we can support your company? Then write to us using our contact form or give us a call. We will be happy to advise and support you with your project.

*As of: June 2019

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