China UnionPay pays another ticket, third party pay company more penalty

China UnionPay again issued a ticket after Shanghai Bank was fined for paying Alipay for borrowing a single agency number. Reporter learned yesterday, including remittance to the world, communications, accompanied by a number of third-party payment companies due to illegal penalties, the amount of money ranging from tens of thousands of to hundreds of thousands of. In response, China UnionPay responded yesterday that it was a "violation of the rules" imposed by UnionPay as a card organization, not a "punishment".

UnionPay said the third party organization applies Code

Recently, UnionPay inspection of third-party payment companies around the company, according to the situation of all branches of the punishment, each branch of fines of tens of thousands of to hundreds of thousands of.

This penalty is mainly because of the third-party payment agencies to apply MCC (merchant Class code), different MCC code for different industries, card processing rates are also different. For example, restaurant procedure rate 1.25%, department store rate 0.78%. Third-party payment companies to seize the market, restaurants can apply to the department store's MCC code, enjoy 0.78% of the processing rate.

For this punishment, China UnionPay said yesterday that the restrictions on the membership of the institutions are based on the development and Reform Commission, the central Bank regulations, and UnionPay card receipts business rules, is unionpay as a card organization, in accordance with the joint negotiations between the business rules of the card organization of the "violation", not "punishment."

Earlier, the Bank of Shanghai, by borrowing the receipt of the agency to pay for the use of Alipay, UnionPay was notified of criticism and issued a ticket. UnionPay said that these transactions can not show the real name of the business, all show the name of the Third-party payment enterprises, and the third-party payment agencies did not follow the corresponding deduction rate, damage to the interest of the issuing bank, but also violates the NDRC's corresponding tariff regulations. Shanghai Bank subsequently interrupted the cooperation with Alipay, Alipay also announced the suspension of offline POS business.

Industry says UnionPay to step up rectification efforts

In July this year, a board of directors document stipulated that all future payment agencies UnionPay card business can only be transferred through UnionPay. A third party payer has referred to this document as the "incorporation of a third party payment roadmap".

Third party payers yesterday told reporters that in the past six months, UnionPay significantly increased the rectification of the POS business, although the penalty is obvious because of the use of merchant code, but the fundamental purpose is to pay companies to the third-party pressure, according to the rules of UnionPay. According to media reports, a third party to pay the industry said that about 90% of the third party payment online business has not taken the UnionPay channel, offline receipts have their own with the Bank of the technical conditions of liquidation, UnionPay should be through market competition rather than forced to demand third-party payments are connected to the UnionPay network.

UnionPay said yesterday that it would work together with industry parties, including third-party payment agencies, to promote and safeguard the overall interests of the industry under the principle of consultation, coordination and cooperation.

According to media reports, in 2009, UnionPay set up a dedicated online payment subsidiary UnionPay Electronic Payment Services Ltd. June 2011, UnionPay officially announced the introduction of "UnionPay online payment" and "UnionPay internet mobile phone payment" business. "It can be said that half is the official, half is the business, can selectively how to profit how to do." "said Gonghui, director of the Center for payment and clearing research at the Institute of Financial Research at Cass.