This article goes through limits involved with cards purchased through Laso Finance and compliance using our services. Note that Laso Finance does not set these limits, but must adhere to them as a MSB (Money Services Business) that is regulated by FinCen.
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Spending limits
The daily spending limit is $1,000 per card. This limit is set in law by FinCEN, the regulatory body for open loop prepaid access cards, and is not changeable.
FinCEN understandably enforces significant civil (fines) and criminal (jail time) penalties for exceeding this limit.
Within that $1,000 daily spend limit, there is no limit on the number of transactions in a day.
Can I create multiple cards?
Yes, but it depends on the card type you're interested in.
U.S., CAD, and International Non-Reloadable Cards
You can issue multiple cards, with a daily limit of up to 6 cards or $6,000 total.
Gift Cards (Amazon, Uber, etc.)
You can issue multiple gift cards as well. There's no limit on the number of cards, but the $6,000 daily limit still applies.
Important: We have a responsibility to abide by the law and prevent fraud. Your cards cannot be used for activities such as trial churning, generating multiple phone numbers, verifying multiple accounts, or similar activities.
For normal consumer spending, you'll be fine. The restrictions are in place to prevent bot farms or similar business-like activities that could violate our compliance requirements.
How does Laso Finance stay compliant?
Laso Finance sells open and closed loop prepaid cards and gift cards.
Today, you can go into say, Target, and buy a prepaid gift card with cash. There is no additional verification or identity verification required. Using the same regulatory framework, you can deposit stablecoins into Laso Finance and get a prepaid or gift card.
There are quite a few rules and regulations required for sellers of prepaid access like Target, or Laso Finance. Complying with these regulations is what makes Laso Finance possible.
Some of the user-facing regulations are:
$1,000 max load on a card.
$1,000 max daily spend per card.
Required processes are in place to reasonably prevent the purchase of $10,000 or more of prepaid access in a single day.
No transfers of value.
Items #1 and #2 are fairly straightforward. Those are implemented at the server-level.
#3 is a bit more complex, but it's somewhere that Laso Finance really excels. We look at a variety of signals to prevent unauthorized purchases, such as, but not limited to: device fingerprinting, spending behavior, 3rd party on-chain forensics, and on-chain activity.
Lastly, #4 is covered more in-depth in the Transfer of Value Laso troubleshooting item.
Laso Finance is a registered money services business (MSB) with FinCEN. We are compliant with all relevant laws and regulations, including anti-money laundering (AML) requirements.