There are five major problems in the third party payment business

With the introduction of the People's Bank's "non-financial institution payment service Management scheme" and the issuance of the first batch of payment licences in 2011, the third party payment institution has ushered in a good opportunity to flourish. 2011 Third Party payment industry continued to maintain strong growth, the overall transaction size reached 2.2038 trillion yuan, an increase of 118%. It is expected that by 2013, China's electronic payment industry transactions will exceed 4 trillion yuan. Third party payment institutions are becoming a useful supplement to our payment system. At the same time, in order to standardize the management of the third party payment institutions, the People's bank has drafted a draft of four administrative measures, such as the preparation of payments, bank card receipts, prepaid cards, Internet payment, and so on, and solicit opinions from all parties.

However, with the intensification of market competition and the relative lag of supervision measures, the management of the third party payment institutions is chaotic, the illegal operation, the vicious market, the impact of the normal payment order, the frequent occurrence of risk events have not been significantly curbed, but there is a growing trend, it is urgent to arouse high attention Further strengthen the management and standardization of efforts to promote the entire payment industry to continue the healthy development.

At present, the third party payment business mainly has the following five big aspects prominent question:

I. The rapid development of third-party payment agencies and their own risk management capacity is seriously asymmetric

At present, the number of third-party payment agencies that have been licensed by the People's Bank of China has 101, in the publicity phase of the 140, there are a large number of waiting for publicity of the payment agencies, the amount of which is far more than the number of financial institutions in the Chinese UnionPay network. With the rapid expansion and herd of the third party payment institutions, on the one hand, compared with the traditional payment business of commercial Bank, the third party payment is a product of computer, network technology and financial integration, the business span is wider and the transaction mode is more complicated. On the other hand, compared with the stringent risk control level and strict external supervision formed by the long-term development of commercial banks, there are obvious problems in the third party payment organization, such as uneven quality of personnel, lack of risk management experience and extremely low cost. Moreover, the establishment of the third party payment institution is complicated, the scale is different, the purpose of entering the payment field is not the same, the consciousness of financial security and social responsibility are not strong. And payment is the basic link of the whole financial system, once mishandled, it is easy to cause the turbulence of financial system, affect social stability.

Second, the third party payment institutions in the so-called innovation in the name of the use of illegal means of operation has almost become a common phenomenon, and a growing trend, seriously disrupt the normal payment order

Because of the immature development of the third party payment institution in our country, it has become the industry latent rule to use all kinds of illegal management means to occupy the market share and improve the earning ability. Most organizations have varying degrees of offsite receipts, apply merchant MCC code, "One Ark Multiple machines", disorderly use merchant name and so on the behavior which the People's bank expressly prohibits; exists to transfer offline transactions via Internet payment channels to commercial banks as online transactions, or, in the name of so-called innovation, to confuse traditional consumer transactions with transfer transactions, Through the different channel price difference carries on the arbitrage, exists in the Cross-border transaction through the separate domestic and the overseas account, uses the hedging currency exchange method, bypassing the bank exchanges the exchange link, evades the Forex regulation, has the breakthrough licence scope, will move the online prepaid card disguised to use and so on many kinds of illegal behavior. As the relevant management methods have not been formally promulgated, the Third-party payment agencies business breakthrough lack of constraints, competition in the industry to imitate, and then spread out, leaving a huge risk of risks, resulting in regulatory "failure", for a long time to establish a market order caused serious damage, the market impact is extremely bad.

Third, the customer information leakage, false card fraud, network fraud, and so on network crime cases quickly climbed, has become the bank card crime new high hair spot

Third-party payment institutions retain the customer name, contact information, address, ID number, bank card number, password, capital transfer path, such as a large number of key messages, and the lack of security protection capacity, application loopholes, internal personnel mismanagement and other factors, can lead to information by outlaws to use or steal, Recently, there are some well-known websites frequently occur user sensitive information disclosure events. At the same time, third party payment is the product of computer, network technology and financial integration, the anonymity of network transactions, the low cost of network payment, the rapid transfer of large sums of money across regional borders, and the lack of traces, the design and defects of this process provide a more convenient platform for illegal transactions such as cash-laundering and money-washing, involving yellow drugs, fraud, tax evasion, Bribery and bribery and other criminal acts also have the opportunity, bad users or criminals can through false trading or linked to phishing websites and other means of illegal activities. However, due to the characteristics of network payment, the problem of high cost, difficulty in obtaining evidence and controversy over jurisdiction is caused by customer rights protection and case investigation. In 2011, the number of cases involving net bank card theft was soaring, and both cardholders and commercial banks suffered huge losses.

Third-party payment institutions beyond the scope of business licensing, the formation of multiple financial roles, there are "first violation of the approval", "first breakthrough and then forced" phenomenon

Third-party payment companies are allowed to operate within the scope of providing payment services, but in practice, third-party payment agencies connected to a large number of online and offline merchants, one end with the banks directly linked to the liquidation, not only the receipt of a single agency, but also carried out a trans-line transfer business, played the role of bank card clearing Organization (UnionPay), their own receipts and then liquidation, Both the athlete and the referee. Third-party payment institutions take deposits by prepaid Faika and virtual accounts, it also acts as the role of commercial bank by depositing funds in the upstream and downstream businesses; third-party service agencies to issue virtual currency, and the virtual currency and real money in a certain proportion of the exchange of currency to play the role of the People's Bank; To issue prepaid cards, Network virtual card to become a card-issuing organization, it can be said to play a role in the financial system, a large breakthrough in the licensing scope of business. The People's Bank of America issued "non-financial institutions payment Services management measures", the intention is to strengthen the regulation and management of the established Third-party payment institutions, so that the third party engaged in payment business should obtain the payment business license before September 1, 2011, otherwise shall not be engaged in payment business. But in fact, as the regulatory measures have not yet been fully introduced, the punitive mechanism has not yet been fully established, resulting in the payment company herd, or competition to set up payment companies, to carry out payment business, or not to obtain a license or be publicized, but to speed up the expansion of business content, expand business scale; Then the larger scale, resulting in the facts, and then forced the regulatory authorities to approve the release. Such a situation would seriously undermine the stability of the financial order if it were not clearly regulated and punished and relied solely on the self-discipline of its profession.

V. The draft of the four approaches that have been drafted, and the lack of coverage and deterrence

The promulgation of the draft of the four methods of People's bank will have a positive and far-reaching influence on standardizing the third party payment management and promoting the healthy development of the industry. However, since third party payments are emerging businesses, there are some deficiencies in terms of coverage, foresight and deterrence in the development of business rules and management practices. At present, many third-party payment agencies to obtain licences involving Internet collection and payment, bank card receipts and prepaid cards and many other content, the business is cross operation, but four management methods are often independent of the article, the border is not clear, and the lack of echoes between. For example, the method does not line up under the lines of business mixed, bank card receipts through the Internet payment channel clearing to give clear provisions; At the same time, the third party payment business is more complex than traditional payment business, Third-party payment agencies are easy to circumvent the regulation, resulting in a large discount of supervision effect, so that relevant For example, the Internet payment Scheme, which provides for the inability to use a credit card from a bank account to a payment account, is able to circumvent regulatory requirements and continue to achieve the goal of transition and transfer by entering into a unified large payment account through a bank account. Therefore, Alipay only stops the credit card to the individual (or merchant) the Alipay account to recharge, considered to have met the regulatory requirements. Furthermore, the approach does not cover all existing business of third-party payment agencies, and there are no forward-looking considerations for the rapid innovation of third-party payment agencies. For example, the method does not put forward the relevant regulatory requirements for the next strategic focus of the payment agency on external card payment business, and does not provide the corresponding supervision opinions on the development of the online merchant and the liquidation of the third party paying agency. There is no clear solution to the current credit operations of third parties and the supply chain financing of upstream and downstream merchants, which exceeds the scope of the licence. is not in the name of a Third-party payment agency to provide payment services, in fact, is engaged in insurance, funds, wealth management products, the sale of business to define the other way to the third party to pay the company violates the penalty is lighter, the deterrent force is insufficient, and its illegal business from the profits obtained from the violation of the cost is very low. For example, (a) there is no corresponding penalty for directors, senior executives and directly responsible personnel of the payment agencies that violate the management practices; The fines for violating prepaid card management measures are only 30,000 yuan; no internet payment license is ordered to stop only by the People's Bank; Involving more than 100 of the number of bank cards or the actual loss of more than 100,000 yuan card issuing bank, the maximum fine is only 30,000 yuan, etc., although also referred to the transfer of public security organs, but the current laws and regulations can be matched still worrying.

In order to promote the sustainable and healthy development of the whole payment industry and to better maintain social stability and financial security, the following suggestions are given:

I. On market access recommendations The people's Bank should strictly control the number of licences and substantially increase the entry threshold. At present, the People's Bank has issued 101 third-party payment companies to pay licences, there are 140 also in the publicity phase, in view of the complexity and importance of the Third-party payment business, considering the characteristics of high concentration of market share in this industry, the proposed payment license should have a total capacity concept, Ningquewulan, not herd. At the same time, further strict access standards and exit mechanism, not only to review the registered capital, business sites, such as rigid constraints, but also to review the risk control of the payment institutions and the quality of the employees of soft constraints.

Second, on the market reorganization of the current has not yet been issued to pay the licence has not been publicized, however, a payment institution which is still operating "normally" shall have a clear deadline and the overdue licence should be ordered to suspend business immediately and shall not continue to operate, avoid the demonstration effect, and make the number of payment institutions roll up as the snowball. To illegally issue loans, sell financial products, etc. beyond the scope of business, or the use of improper means of operation of the unjust enrichment, as well as the occurrence of greater risk loss, to take strict punitive measures, to give the revocation of the licence or even the "illegal operation of the crime", "obstruction of credit card management crime" punishment, resolutely curb the "first violation of the approval", " The first breakthrough and then the "phenomenon of forced".

Third, on the management measures recommended that the people's Bank to expedite the introduction of relevant management measures, so that the industry parties as soon as possible in accordance with the same rules to start competing. At the same time, all kinds of management systems and methods should be echoed, interlocking, not to leave the opportunity, but also the management of the forward-looking. In the case of the provisions for the preparation of the payment of funds for the payment of cooperative bank accounts of the collection time proposed to the day, to avoid third-party institutions to deposit as bait to stimulate interbank price competition, disrupting market order. It is recommended that both the bank card receipt method and the Internet payment method should be made clear whether the development online merchant or the development line merchant, a receiving institution cannot be a bank card clearing organization at the same time, it should only allow a third party to access an approved transfer clearing organization, and shall not be directly linked with each bank for the Trans-bank liquidation. This allows centralized monitoring of all financial and non-financial receipts institutions through the transfer of clearing organizations to avoid the phenomenon of both athletes and referees. At the same time, with the "Internet payment method" in line with the strict distinction between online and offline transactions, separate entity currency and virtual currency. In the Internet payment method, it is proposed to put forward the forward-looking management principles for the payment of Internet cards, to provide payment service for customers to purchase financial products and to sell financial products, so as to avoid the breach of payment institution in a disguised way. It was suggested that, in all approaches, payment agencies should not be provided with account overdraft, cash access and financing services to clients, not just in the Internet payment scheme. It is suggested that the directors, senior executives and the directly responsible personnel of the payment institution which violate the management method should make clear punishment opinions including prohibiting the practice, and improve the deterrent power of supervision.

Iv. on the regulatory mechanism it is recommended that the people's Bank and the CBRC jointly strengthen the management of the Third-party payment agencies, coordinate the supervisory powers of both sides and jointly undertake the supervisory responsibility. In view of the current online business has been inseparable, third-party payments across the cross-sectoral, more complex than the traditional payment business of commercial banks, in order to increase supervision, the proposal will be online under the line of Merchants Unified management, the third party payment agencies, compared to commercial banks, by the People's Bank and the CBRC jointly supervised, at the same time the implementation of layers, Play the role of commercial Bank and UnionPay in the supervision process. It is suggested that further implementation of specialized departments and personnel should be carried out to speed up the study of innovative products of third-party payment institutions, to constantly update regulatory requirements, to improve regulatory measures and punishment mechanisms, and to effectively strengthen the supervision of third-party payment agencies, enforced and Fapic. (Billei)

Zhao Yuzi: CPPCC member, China Construction Bank (601939, share) credit Card Center General manager