Since the beginning of August UnionPay has issued a notice to further strengthen the risk prevention and control of credit card business, requiring that in accordance with the principle of "whose merchant is responsible", the specific responsibilities for cash risk prevention and control shall be applied to merchant access, transaction monitoring, investigation and verification, disposal constraints, etc. After the link, recently, in addition to many banks "taking action" to strictly control the flow of funds, several payment institutions are also stepping up their efforts to contain credit card arbitrage.
On September 1st, reporters from Beijing Business Daily learned from many interviews that including Tenpay , Alipay , CICC Payment , Jialian Payment , Fuyou Payment , etc. The payment company is further strictly controlling the flow of credit card funds. On the one hand, it strictly implements the real-name management of merchants beforehand, and realizes real-time monitoring, identification and interception of transaction risks during the process. It will also adopt zero-tolerance measures against merchants with high cash-out risks afterwards.
Containment of the whole process before, during and after the event
Just now, a leading payment institution has issued a notice.
html On September 1, a reporter from Beijing Business Daily noticed that WeChat Pay Merchant Pass issued an initiative on further strengthening credit card business risk prevention and control, saying that in order to strengthen credit card business management and prevent credit card business risks, all partners need to effectively fulfill the main responsibility of merchant management. , integrating credit card business risk management and control measures throughout the entire merchant management life cycle.At the same time, all partners need to further strengthen the monitoring, analysis, identification and control of abnormal transactions with risks such as credit card cash-out, and actively verify and handle merchants and transactions suspected of risks such as cash-out, and report them in accordance with laws and regulations; in addition, they must also Strictly control the flow of credit card funds and strengthen the management of merchant credit card transaction limits.
In addition to WeChat payment, Alipay also told a reporter from Beijing Business Daily on September 1 that it has adopted full life cycle risk prevention and control measures to strengthen the management of illegal transactions such as credit card cash out from merchant access, transaction monitoring and other aspects.
Specifically, first of all, Alipay implements real-name management of merchants in strict accordance with regulatory requirements, establishes special risk strategies for the characteristics of illegal cash-out of credit cards, realizes real-time monitoring, identification and interception of transaction risks, and establishes identification and crackdown plans for cash-out platforms. .
"For merchants with cash-out risks detected during inspections, we will take corresponding punishment measures such as blocking transactions, limiting or closing credit card channels, prohibiting the inflow and outflow of account funds, delaying fund settlement, and liquidating merchants according to the risk concentration and level." Alipay say.
In addition, Alipay will also carry out joint prevention and control with clearing institutions, payment institutions, banks and other partners to deal with credit card cash-out risks among affiliated merchants, and assist cooperative banks by opening the security product "RiskGo" to cooperative banking institutions. Identify and manage merchants better and faster, and effectively prevent the occurrence of illegal risks such as credit card cash out.
In fact, whether it is online payment or offline payment, many payment institutions have achieved remarkable results in strictly controlling credit card arbitrage. For example, the relevant person in charge of a payment company in Shanghai pointed out that by strictly controlling the quality of special merchants' access to the Internet in advance, they can confirm the merchant's operating status and true willingness to access the Internet, implement the real-name system requirements for merchants, and ensure the authenticity, integrity and validity of merchants' Internet access information; at the same time, , and will also carry out risk level classification management for online merchants and refuse to establish business relationships with high-risk merchants.
"On the one hand, during the incident, merchant transactions can be monitored through the risk control model and fraudulent transactions can be intercepted in real time. In addition, after the incident, risky merchants will be strictly dealt with and a zero-tolerance policy will be adopted for high-risk merchants." The aforementioned Shanghai Payment The relevant person in charge of the company added.
Even if the business scenario focuses on B-side online payment institutions, it also checks for credit card arbitrage and fills in the gaps. On September 1, the person in charge of a Beijing payment institution also told a Beijing Business Daily reporter that it mainly focuses on B2B business and focuses on providing payment services to enterprises, with credit card transactions accounting for less than 2%.But despite this, the company will also limit the use of credit cards for payment in consumer scenarios in terms of merchant access. Regarding payment limits, number of transactions, concentration (cardholder concentration, credit card transaction concentration), refunds (Generally, it is required to return it to the original route) There are strict requirements on the proportion and other aspects. In addition, relevant monitoring models are also made for credit card cash-out in transaction monitoring to monitor credit card transactions.
Su Xiaorui, a senior analyst in the financial industry of Analysys, said that these strict control measures by payment institutions are designed to respond to the spirit of supervision and lay a good foundation for maintaining a healthy and good credit card market order; on the other hand, they are also beneficial to their own Internal risk prevention and control, thereby further improving the quality of credit card transactions.
There are still difficulties in identifying cash-out transactions
These prevention and control actions taken by payment institutions are inseparable from the "Work Notice on Further Strengthening the Risk Prevention and Control of Credit Card Business" issued by UnionPay in August. The "Notice" focuses on five aspects: effectively fulfilling the main responsibilities of merchant risk management, strictly standardizing merchant authenticity management, further strengthening transaction monitoring of cash-out risks, fully investigating and verifying suspected cash-out risk cases, and strengthening cash-out risk merchant control measures. A “red line” has been drawn for prevention and control.
But what cannot be ignored is that despite the layers of containment, many violations still occur in the market, and payment institutions also encounter many difficulties in the process of strictly controlling cash out.
For example, an employee of a payment company bluntly said that in the process of cash-out monitoring, the biggest difficulty is to judge the real transaction scenario of the merchant and the transaction behavior of the cardholder. Many cash-out transactions are jointly participated by the cardholder and the merchant. If Pure cash-out merchants are easier to find, but if normal transactions are mixed with cash-out transactions, it is more difficult to find. In addition, large cash withdrawals are easier to detect, while smaller cash withdrawals are more difficult to detect.
"Another practical problem is that cash-out transactions are profitable for some institutions, especially offline acquirers. Therefore, complete control of cash-out transactions will not provide enough motivation for payment institutions." The person mentioned.
The person in charge of the aforementioned Shanghai payment institution said that the difficulty in strictly controlling cash-out transactions lies in the products. Some products are easily used by risky merchants for cash-out or illegal transactions. To solve these problems, before the product is launched on the market, the compliance and risk control departments must intervene to prevent the product from being exploited.
In addition, another person from a payment institution said that some suspected cash-out transactions are currently showing evasive behaviors such as split transactions, real-scene alternating transactions, multiple payment method transactions, etc., which makes it more difficult to identify and identify cash-out transactions.
"At present, there are two difficulties in preventing cash-out." Wang Pengbo, a senior analyst in the financial industry of Broadcom Consulting, further told the Beijing Business Daily reporter that firstly, there are many stakeholders in the relevant industry chain and have realistic needs; secondly, In the context of digital economy and , non-bank payment institutions, especially those under Internet platforms, mostly serve small and micro merchants or individual operators, and generally face the problem of wide coverage areas and scattered merchant operations. In his view, this is actually similar to the difficulties encountered in anti-money laundering. It is necessary to more strictly implement relevant regulations such as one machine, one code, and use technical means for monitoring.
"In fact, our company is also planning to increase the analysis of risky transactions and improve risk control monitoring parameters to more effectively intercept suspicious transactions." said the person from the aforementioned payment institution.
Still a protracted battle
Credit card business risk monitoring and prevention is a protracted battle for payment institutions.
Regarding the follow-up measures, WeChat payment merchants will continue to strengthen credit card business risk monitoring and prevention and control, and improve the risk management and control mechanism. If it is found that a partner fails to implement regulatory requirements and the merchant has credit card transaction risks, corresponding measures such as adjusting the transaction limit and suspending cooperation will be taken based on the default and risk conditions.
Alipay said that currently, it is also popularizing the risks and hazards of cashing out to special merchants and users through multiple channels such as the merchant service platform, Alipay Security Center, Ant Classroom, and Alipay’s official Weibo. At the same time, online training is organized from time to time to publicize typical cases of cash-out risks, techniques, risk prevention measures, etc.
Regarding follow-up prevention and control, Wang Pengbo suggested that, first of all, payment institutions should strictly abide by relevant regulations, and all parties in the industry chain should pay attention to and effectively fulfill their responsibilities in preventing cash-out and anti-money laundering, such as the "About Strengthening the Management of Payment Acceptance Terminals and Related Businesses" "Notice" requires constraints such as one machine and one code, binding of five elements of acceptance terminal and acquirer.
In terms of institutional development, Wang Pengbo suggested that we should gradually expand income channels from single sources of income such as fees and rates to enterprise digital services. WeChat, Alipay, UnionPay and other platform institutions should play a guiding role, so that we can fundamentally Eliminate dependence on gray income such as cashing out.
Su Xiaorui said that in the future, payment institutions still need to strengthen merchant authentication and identification, control the merchant authentication mechanism from the source, and prevent bad entities from fraudulently using merchant identities. This can not only prevent criminals from using merchant identities to transfer funds, but also prevent consumption. Investors face potential risks of capital loss in front of so-called "certified merchants", and they continue to make efforts in consolidating compliance work such as anti-money laundering, building a secure line of defense, and creating a good shopping and consumption environment for financial consumers.
Beijing Business Daily reporter Liu Sihong
