New developments in the dispute between Visa and China UnionPay

Absrtact: The dispute between the world's largest payment company visa and China UnionPay has made new progress. The first financial daily reporter learned that the World Trade Organization (WTO) has recently submitted China-US electronic payment dispute to the dispute resolution agency (Disput

There are new developments in the dispute between the world's largest payment company visa and China UnionPay. The first financial daily reporter learned that the World Trade Organization (WTO) has recently submitted China-US electronic payment dispute to the dispute resolution agency (stresses settlement body, hereinafter referred to as "DSB").

This reporter from the WTO official website learned that at the DSB meeting held in Friday, the Sino-US dispute over China's electronic payment procedures has been submitted to the court system as planned.

Last September, the U.S. Trade Representative's Office (USTR) filed a complaint with the WTO over China's discrimination against U.S. credit card companies, the first to push the dispute between UnionPay and Visa to the WTO. This reporter from then USTR submitted to the WTO "complaints" report, the accusation that only UnionPay is allowed in China for renminbi transactions in the payment card to provide electronic payment services, and other bank card service providers can only for foreign currency transactions payment cards to provide services.

After the failure of the consultation last September, USTR formally drew the WTO dispute settlement mechanism. According to WTO rules, consultation is the first step in settling disputes, but if the parties to the dispute do not reach a solution within 60 days, they may apply for a dispute settlement panel to deal with the dispute.

As of last night reporter press, China UnionPay has no latest stance on this. Previously, visa-related Chinese sources have said that its request for foreign banks to strengthen the Visa card processing must comply with Visa's global operating rules of the long-standing, the complaint is the United States Trade Representative's office behavior, Visa declined to comment.

The "feud" between UnionPay and Visa has long been a long-standing battle. Visa last year sent a letter to the world's member banks stressing that from August 1 onwards, all outside China (including Hong Kong, Macao, Taiwan) to accept the issue of the 4-word "UnionPay, Visa" dual-currency credit card, regardless of the card consumption or ATM to take the present, will not take the UnionPay settlement channel.

According to our correspondent understand, currently in Europe, the Americas and other regions, "UnionPay, Visa" dual-currency credit card has been in the overseas payment channel encountered a part of the restrictions.

"In fact, UnionPay is very interested in achieving parity, but it is very difficult," a close to China UnionPay said to the reporter, "International card organizations in the overseas network and card issuers are not willing to open to UnionPay, UnionPay in the overseas constantly cloth points." "Up to now, UnionPay global processing network has been extended to 104 countries and regions outside the country, and 17 overseas countries and regions 65 institutions in the local issue of UnionPay card."

The person also said that the electronic payment area is very important to any country, the UnionPay system's data not only has the very big function to the domestic payment, the liquidation and so on, also contains the bank personal information and the industry information. "Once the domestic payment clearing system is open to offshore organizations, these organizations can analyze personal and industrial information." "he said.

"Before the birth of UnionPay, the national network of the banks can be said to be a ' card organization ', the standard is different, but this is not even open the State is not sustainable, UnionPay to improve the efficiency of industrial operation played a role." The person said.

In addition to the dispute between Visa and UnionPay, MasterCard has been stepping up cooperation with UnionPay, which signed a memorandum of cooperation last September to promote online payments and other cooperation. At present, the cooperation between UnionPay and overseas bank card organizations is mainly in the fields of overseas receipts and card receipts.