Card issuing banks first included in the scope of restraint

For the collection of the market irregularities, UnionPay will increase the restraint. December 4, UnionPay convened more than 50 member agencies to interpret the upcoming revised version of the "UnionPay Card processing Market violation rules" (hereinafter referred to as: the Rules of constraint). According to the Union, the rules are 2-5 times more forceful than before.

It is reported that the restrictions on the receipt of a single institution to apply merchant category code, the application of special billing, around UnionPay transfer and other violations of the enforcement efforts, and a series of new violations of the restrictions on the disposal of provisions.

Card issuing banks first included in the scope of restraint

According to the Union, the rules will also include card issuers in the scope of restraint, that is, the first card issuing banks into the scope of constraints.

UnionPay people bluntly, the current round UnionPay transfer of the violation of the phenomenon intensified. Firms have formed two sets of price systems, which have led banks to compete with each other to keep down the rate of fees, "banks are not looking at tariffs but deposits", and other agencies are scrambling to follow suit, making the market order even more confusing.

In this connection, UnionPay recently through complaints, institutions to submit channels, a total of more than 1300 kinds of interface information, has confirmed the number of interfaces more than 60.

The restriction rules stipulate that the minimum binding amount for the cross-trade of UnionPay card is 50,000 yuan, which is more than 25,000 yuan as stipulated in the old document. The illegal transactions are extended from 180 days to 1 years. It is worth noting that the restricted institutions include not only the receiving agencies but also the card issuers, which is an important clause in which the issuing bank is included.

In addition, in case of serious breaches of the institution or in accordance with the requirements of the regulatory body, UnionPay may set one or more trading privileges and trading limits on the basis of the violation, until the Trans-bank transaction of the institution is suspended.

It is worth mentioning that the UnionPay people said that the UnionPay will be operating in 2015, known as the "UnionPay drying platform," the micro-letter public number. The platform to encourage consumers in the brush UnionPay card consumption after the Sun small ticket or the bill, if found that the consumption and the actual operation of the merchant does not meet, UnionPay will give hundreds of yuan of the fee reward.

It is understood that the platform launched to December 2, the cumulative receipt of 853 of the Sun, the verification of the violation of 301, of which around UnionPay transfer to save 85.

In addition, UnionPay recently issued "on further clear violations of the relevant requirements of the notice", the request to receive a member agencies to complete the transfer of the Union UnionPay before the end of the transfer transaction. Among them, for the transfer of all around UnionPay transfer volume ratio, clean up before November 30, not less than 50%, December 10 before cleaning up not less than 65%, December 17 before cleaning up to no less than 80%, December 24 before the clean-up of not less than 90%, December 31 before the full clean-up completed. Notice that the overdue reports or the provision of information is still incomplete, untrue, irregular, as a breach of promise, will be canceled rectification period, the usual constraints on all irregularities.

Enforcement efforts to increase "systematic change transaction" single penalty of 1 million yuan

In addition, the constraint rules increase the enforcement of the application Merchant Category code (MCC) and the special billing.

According to the Union, the assumption that the receipt agency will give the restaurant (rate 1.25%) Cloth pos Shop code into a supermarket (processing rate 0.38%), restaurant on this POS on the daily average of 10,000 yuan illegal transactions, the past need to vomit the amount of "(Compliance rate-violation rate) x illegal transaction amount", The calculation result is 870 yuan, and according to the restriction rules, the amount that needs to be vomited becomes "(1.25%-violation rate) x illegal transaction amount + (1.25%-0.78%) x Illegal transaction amount", that is 20100 yuan.

Data show that in January-November this year, the form of MCC and applied special billing has detected 440,000 illegal shops. This is a common violation of a receiving institution.

The rules also stipulate that the purchase order is illegal, illegal registration of merchant information, violation of the establishment of the entity Merchant Code (32 domain violation), the terminal is not certified, illegal set up merchant name, this part of serious irregularities, no longer to give rectification period.

It is reported that this January-November, 32 domain is not standard, merchant name is not standardized, etc. have detected more than 1.18 million households.

For the new market irregularities "Systematic change transaction" (receiving institutions use technical means to the same merchant acceptance terminals initiated by the UnionPay card transactions, combined into more than one set of transactions, dispersed in a number of merchant code or multiple channels to send the restrictions, the binding rules added a corresponding binding clause, "when the violation of the determination, The penalty for starting liquidated damages is 1 million yuan a single time.

In addition, for the wrong set merchant class code, the period does not provide or provide false material, delay rectification, the transfer of responsibility (the receipt of the institution in the form of express or implied, the use of UnionPay or the name of the industry commission for its outsourcing agencies or business-related responsibilities), outsourcing agencies did not record, 5th text also added a corresponding binding provisions.

It is understood that the binding rules in the four sessions of the Commission to consider the adoption of four meetings. Its member agencies, branches, departments and departments to solicit 3 rounds of opinion, the discussion 10 more than completed, before and after the total revision of more than 30 drafts.

UnionPay people stressed that the binding rules are based on the membership of the network agreement in the establishment of the Protocol, the party who violates the agreement shall be held responsible for the breach of contract and receive the specific enforcement provisions of the liability for breach of duty; Such practices are not exclusive to China UnionPay, and other brand card organizations, such as Visa and MasterCard, are even tougher.

According to the introduction, the binding rules are used to safeguard the legitimate rights and interests of all member institutions of China UnionPay, prevent individual member organizations from violating the commercial contract to create unfair competition means. UnionPay people bluntly, the current market in the "bad currency expelled good currency" state, "this market to do things to do compliance business forced to the corner."