What Is the Difference Between Charged Balance and Point Balance?
## Overview
---
Pokepay lets you offer two types of balance: Charged Balance and Point Balance.
Both work the same way at payment: **1 point can be used as 1 yen.**
What differs is how the balance reaches the member. Charged Balance is balance the member pays money to add, which is what is usually meant by prepaid. Points are balance the shop gives members free of charge. You cannot sell Points to members.
This page explains the differences.
## What Is Charged Balance?
---
- Charged Balance is **balance that members can purchase for consideration, or for a fee**.
- For example, a member can charge balance with cash in order to shop.
<div class="notion-gray-bg">
> ℹ️ **INFO**
>
> - When charging balance, always receive consideration from the member.
> - If a balance with remaining validity exists when the service ends, you must provide a Refund to the member.
> - Depending on the expiration date and total balance of the Charged Balance, it may be subject to the Payment Services Act.
</div>
## What Is Point Balance?
---
- Point Balance is balance that **the shop can provide to members free of charge**.
- For example, you can provide Points that members can use on their next visit as a sales promotion.
<div class="notion-gray-bg">
> ℹ️ **INFO**
>
> - When providing Points, do not receive consideration from the member.
> - You do not need to provide a Refund when the service ends.
> - You are responsible for the funding source for Points. PocketChange Inc. does not bear that cost.
> - Points are not subject to the Payment Services Act, but they are subject to the Act against Unjustifiable Premiums and Misleading Representations.
</div>
## Both Work the Same Way at Payment
---
At payment, Charged Balance and Points are handled in the same unit. 1 point counts as 1 yen and can be combined with Charged Balance to pay.
<div class="notion-gray-bg">
> ℹ️ **If you have set an exchange rate**
>
> If you set a rate under **Exchange rate**, 1 point counts as 1 unit of your e-money, and its yen value follows that rate.
</div>
## You Cannot Sell Points
---
You cannot have members buy Points and then pay with them. When you receive money from a member to add balance, that balance is Charged Balance, not Points.
Use Charged Balance when you want to sell balance in advance, and use Points when you want to give balance as a thank-you for visits or purchases or as a promotion. Points can also be granted automatically as a rebate on charges or payments. For details, see [Configure Point Rebate Settings](/en/help/app/point-reward-settings/).
## What Problems Can Happen If They Are Confused?
---
- If you provide Charged Balance free of charge or provide Points for consideration, the following issues may occur. For details, check the websites of the relevant administrative agencies.
- It may become difficult to manage the notification threshold to the Local Finance Bureau (JPY 10 million).
- Depending on the expiration date, notification to the Local Finance Bureau and payment of a security deposit may be required.
Overview
Section titled “Overview”Pokepay lets you offer two types of balance: Charged Balance and Point Balance.
Both work the same way at payment: 1 point can be used as 1 yen.
What differs is how the balance reaches the member. Charged Balance is balance the member pays money to add, which is what is usually meant by prepaid. Points are balance the shop gives members free of charge. You cannot sell Points to members.
This page explains the differences.
What Is Charged Balance?
Section titled “What Is Charged Balance?”- Charged Balance is balance that members can purchase for consideration, or for a fee.
- For example, a member can charge balance with cash in order to shop.
ℹ️ INFO
- When charging balance, always receive consideration from the member.
- If a balance with remaining validity exists when the service ends, you must provide a Refund to the member.
- Depending on the expiration date and total balance of the Charged Balance, it may be subject to the Payment Services Act.
What Is Point Balance?
Section titled “What Is Point Balance?”- Point Balance is balance that the shop can provide to members free of charge.
- For example, you can provide Points that members can use on their next visit as a sales promotion.
ℹ️ INFO
- When providing Points, do not receive consideration from the member.
- You do not need to provide a Refund when the service ends.
- You are responsible for the funding source for Points. PocketChange Inc. does not bear that cost.
- Points are not subject to the Payment Services Act, but they are subject to the Act against Unjustifiable Premiums and Misleading Representations.
Both Work the Same Way at Payment
Section titled “Both Work the Same Way at Payment”At payment, Charged Balance and Points are handled in the same unit. 1 point counts as 1 yen and can be combined with Charged Balance to pay.
ℹ️ If you have set an exchange rate
If you set a rate under Exchange rate, 1 point counts as 1 unit of your e-money, and its yen value follows that rate.
You Cannot Sell Points
Section titled “You Cannot Sell Points”You cannot have members buy Points and then pay with them. When you receive money from a member to add balance, that balance is Charged Balance, not Points.
Use Charged Balance when you want to sell balance in advance, and use Points when you want to give balance as a thank-you for visits or purchases or as a promotion. Points can also be granted automatically as a rebate on charges or payments. For details, see Configure Point Rebate Settings.
What Problems Can Happen If They Are Confused?
Section titled “What Problems Can Happen If They Are Confused?”- If you provide Charged Balance free of charge or provide Points for consideration, the following issues may occur. For details, check the websites of the relevant administrative agencies.
- It may become difficult to manage the notification threshold to the Local Finance Bureau (JPY 10 million).
- Depending on the expiration date, notification to the Local Finance Bureau and payment of a security deposit may be required.
