Use the visa channel to swipe your credit card in Europe.

1. VISA blocks UnionPay overseas: Visa requires that from August 1, 2010, when accepting dual-currency credit cards with the Visa logo outside mainland China, you must not use China UnionPay’s clearing channels. Otherwise, Visa will severely fine the acquiring bank, with the first fine of US$50,000. Repeat offenses will result in fines of $25,000 per month.

2. The WTO ruled that UnionPay discriminated against VISA: Late at night on July 16, 2012, Beijing time, the World Trade Organization (WTO) expert group made a ruling that China’s requirements and measures for the electronic payment industry were inconsistent with the service industry. It is inconsistent with the General Agreement on Trade (GATS) and undermines the relevant interests of the United States under this agreement. The expert group also recommended that the WTO dispute settlement body require China to further reform relevant measures to comply with its obligations under the GATS.

Extended information:

1. Origin: A short honeymoon

Long before the establishment of China UnionPay in 2002, VISA actually took on the responsibility of The role of guide and cultivator in China’s bank card market. China UnionPay was established in March 2002. Three months later, UnionPay joined VISA and became its contracted acquirer. Since then, VISA has continued to support UnionPay for a long time.

2. Conflict: UnionPay was rejected by VISA

In the second half of 2003, UnionPay proposed to use the VISA global network to allow 800 million RMB debit cards to go abroad, but was rejected. When there was unexpected opposition, VISA refused on the grounds that it did not comply with international standards and the original agreement.

3. Fission: Teachers and students become rivals

China UnionPay realizes that teachers and students who were once close have become rivals in business wars. If you do not develop your own brand and standards, you will be destined to become a regional payment clearing organization. In 2004, UnionPay began its arduous journey towards internationalization.

4. Cooperation: Dual-currency and dual-brand cards are launched

In the hope of gaining the most exclusive rights in mainland bank cards by taking a stake in China UnionPay, the only payment and clearing organization in China. After the vision of network resources was shattered, Visa chose to form a joint venture company as the second best option to enter the Chinese market. Displaying dual currencies and dual brands on one Visa card has also become a special case of Visa in the Chinese market.

5. Breakup: UnionPay points to VISA

UnionPay monopolizes domestic clearing channels, making it difficult for VISA to make money in China. While it is striving to expand its sources of profits within China, on the other hand, China UnionPay has begun to promote internationalization in the past two years, sharing the "soup" of Visa's profits by laying networks in many countries. This obviously struck a chord with Visa.

Baidu Encyclopedia-Visa blocks China UnionPay’s overseas channels