On March 20 14, the central bank issued the Notice of the People's Bank of China on the Risk Event of Bank Card Pre-authorization, requiring remittance to eight institutions, including Tianxia, Yifutong, Suifutong, Fu You, Kayou, Haike Rongtong, Shengfutong and Fu Jie Ruitong, to suspend access to new merchants nationwide from April 1 4. In addition, China UnionPay's UnionPay business and Guangdong Jiafuruitong,
The punishment for remitting money to Tianxia, Fu You, Ipoh and Suifu is only a continuation of the last incident. The fundamental reason why the above four enterprises were punished was that credit card pre-authorization cashing cases were frequent. Pre-authorized cashing of credit cards means that after pre-authorized POS machines, the capital scale of 1 15% can be used, which makes some cardholders and merchants collude with each other to cash out.
The cash chain of credit card pre-authorization is that the cardholder deposits a large amount of money in the credit card he holds, and then pre-authorizes by swiping the card through a pre-authorized POS machine. According to the transaction rules formulated by UnionPay, the issuing bank will pay the pre-authorized credit card amount to the merchant in advance, and the cardholder and the merchant can find out the amount of credit card overflow through mutual linkage.
The ultimate risk of credit card cashing still falls on the bank, and the corresponding links, such as third-party payment, do not bear the risk, and there is no rigid requirement for the background supervision of abnormal credit card transactions. The central bank's action is to curb the barbaric growth of third-party payment and let the industry develop in an orderly manner.