Financial IC cards, also known as chip bank cards, are bank cards that use chips as the medium. The chip card has a large capacity and can store information such as keys, digital certificates, fingerprints, etc. Its working principle is similar to a microcomputer and can handle multiple functions at the same time, providing cardholders with the convenience of one card for multiple uses.
Financial IC cards are issued by commercial banks (credit unions) or payment institutions. They use integrated circuit technology and follow national financial industry standards. They have all or part of the financial functions of consumer credit, transfer settlement, and cash deposits and withdrawals. , a financial instrument that can have other business services and social management functions.
Category
There are two chip card standards on the market, one is the EMV standard that is widely used internationally, and the other is the PBOC2.0 standard of the People's Bank of China. ICBC launched the country's first EMV standard credit card in December 2005, and launched the country's first PBOC2.0 standard credit card in November 2007.
Chip cards are divided into pure chip cards and magnetic stripe chip composite cards based on media type. Among them, pure chip cards use chips as the only transaction medium and can only be used at acceptance points with chip reading equipment; magnetic stripe chip composite cards can support both chip and magnetic stripe media and can be used at acceptance points that can accept chips. The chip is read, and the magnetic strip is read at other acceptance points, which is the same as the traditional magnetic stripe card.
In terms of communication methods, chip cards can be divided into contact cards and contactless cards (as well as contact + contactless dual-interface cards)
ICBC Peony Financial IC Card is a magnetic card Chip chip composite dual-interface card basically covers common acceptance methods.
Function
1. Fundamentally improve the security of bank cards. Because the technology of bank magnetic stripe cards was simple in the past, the magnetic stripe information was easy to be copied. Magnetic stripe information skimming devices were used to copy the bank card track information, and the cardholder's sensitive information was stolen through electronic channels such as online banking, and the cardholder's sensitive information was captured on the ATM terminal through a pinhole camera. Incidents such as secretly recording cardholder passwords, as well as cases of forging magnetic card strips and stealing magnetic card information occur frequently, causing huge losses to cardholders and card issuers. Practical experience around the world shows that after the use of IC cards is promoted, such cases will drop significantly.
2. It is conducive to the business innovation of commercial banks. Compared with bank magnetic stripe cards, which have small storage space and no computing power, financial IC cards have a multi-application loading platform, which can enrich the bank card product series and become an important means of business innovation for commercial banks.
3. It meets the urgent needs of government management and serving people’s livelihood. The society is filled with all kinds of payment cards. Due to the diversity of card issuers and different technical standards, they cannot be connected to the Internet for unified settlement, and account fund management is chaotic. The situation of "one card for one thing, multiple cards for one person" is very common, causing cardholders to carry and use The inconvenience is that the accumulated funds in the card are outside the financial system, and there are also many potential risks.
After using financial IC cards, financial IC cards can be used as the mainstay, gradually reducing and replacing various cards in society, and realizing one card for universal use (universal payment nationwide) and one card for multiple purposes ( One card for multiple industries) is a necessary starting point to unify and standardize the payment market, strengthen industry management functions, and improve government management and serve people's livelihood.
4.
Financial IC card is a tool that is highly integrated with modern information technology and financial services. It adopts chip technology and financial industry standards and can be used as a bank card, security card, and management card. It has multiple functions, such as security, convenience, standardization and scalability. After repeated demonstrations, the central bank has implemented the strategy of migrating bank cards from magnetic stripe cards to financial IC cards. This work has shown good development momentum. Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Postal Savings Bank and some National joint-stock commercial banks and city commercial banks have begun to issue financial IC cards.
Significance
Li Dongrong, deputy governor of the People's Bank of China, emphasized at the Financial Integrated Circuit (IC) Card Promotion and Application Seminar yesterday that in promoting the application of financial IC cards, we must adhere to Government guidance should be combined with market operations to effectively utilize both government and market resources; it is necessary to correctly understand the commercial returns and social responsibilities of promoting financial IC cards and achieve a co-ordination of the two.
Li Dongrong said that it is necessary not only to continue to introduce international advanced technology and promote the healthy development of my country's financial IC cards with international standards, but also to create a good policy environment and promote the upgrading of the domestic industrial chain.
It is necessary to continue to leverage the potential of financial IC cards to lead financial business innovation, explore ways for financial IC cards to develop from providing information services and transaction payments to financing convenience, and implement financial standardization strategies in the process of promoting the application of financial IC cards, and actively use financial IC cards. As an important electronic payment tool, cards effectively support the construction and development of e-commerce cities in the field of electronic payment.
According to Trust Network, since the central bank implemented the strategy of migrating bank cards from magnetic stripe cards to financial IC cards, the work has shown a good momentum of development. ICBC, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Post Office The Central Bank of China and some national joint-stock commercial banks and city commercial banks have begun to issue financial IC cards.
Li Dongrong emphasized that promoting financial IC cards under the current situation has far-reaching strategic significance. First, taking the migration of financial IC cards as an opportunity, we can fundamentally improve my country's bank card risk prevention level, meet the people's urgent needs for payment security, and benefit the people and gain wealth; second, using financial IC cards as a link, we can Drive the development of industry and urban and rural informatization and promote the construction of service-oriented government; thirdly, using financial IC cards as the cornerstone can enhance the competitiveness of the banking industry and improve the level of modern financial services; fourthly, using financial IC cards as the fulcrum can leverage national strategies industry development and improve overall safety and design levels.
Development
As of the end of 2009, many banks have piloted the issuance and promotion of financial IC cards. Among them, the number of UnionPay standard IC cards issued has exceeded 6 million, and more are in compliance with PBOC2 .0
Standardized financial chip cards are gradually appearing on the market. As of May 2010, the total number of terminals that have completed contactless transformation across the country has exceeded 700,000; Shanghai, Ningbo, Guangzhou, Shenzhen, Hunan, Guizhou and other regions have launched the construction of contactless acceptance environments and deployed Nearly 30,000 contactless terminals have been installed; POS terminal acceptance transformation in Hong Kong, Macao and the Asia-Pacific region is also in progress.
The People's Bank of China accelerated the deployment of financial IC card promotion in 2010, initially clarified the timetable for the issuance of financial IC cards by commercial banks, and put the promotion of financial IC cards on the important agenda. It is expected that by 2015< /p>
In 2019, bank cards will fully implement UnionPay PBOC2.0
standard financial IC cards. On March 15, 2011, the People's Bank of China issued the "Opinions of the People's Bank of China on Promoting the Application of Financial IC Cards" (hereinafter referred to as the "Opinions") and decided to officially launch the migration of bank card chips nationwide. "During this period, the application of financial IC cards will be comprehensively promoted. China UnionPay and Tianjin City Card Company signed a comprehensive strategic cooperation agreement on March 3, 2012, confirming the full opening of cross-industry acceptance of PBOC2.0 standard financial IC card business in the municipal public service field within Tianjin. It is agreed that Tianjin City Card Co., Ltd. will complete the transformation of its acceptance terminals throughout buses, taxis, subways, light rails, parking lots, convenience stores, etc. within half a year so that they can accept financial IC cards issued by commercial banks.
Latest developments in 2012
The Central Bank announced on July 19, 2012 that from January 1, 2013, all national commercial banks will issue financial IC cards. As of the first half of 2012, more than 45 million financial IC cards had been issued nationwide, an increase of 20.7 million or 85% compared with the end of 2011. By the end of the year, financial IC cards accounted for more than 15% of the incremental card issuance.
In March 2011, the central bank fully launched the migration from bank magnetic stripe cards to IC cards. According to the schedule of the central bank, major state-owned banks such as Industry, Agriculture, China, Construction, Communications and Merchants, and Postal Savings Bank have begun to issue financial IC cards. Social security cards have been integrated with financial IC cards, and it is expected that 800 million financial IC cards will be issued during the "Twelfth Five-Year Plan" period. The central bank stated that financial IC cards will account for more than 15% of the incremental card issuance by the end of the year.
The central bank stated that from January 1, 2013, all national commercial banks will begin to issue financial IC cards. From January 1, 2015, in economically developed areas and key cooperative industries, commercial banks will issue financial IC cards. All bank cards with RMB settlement accounts should be financial IC cards.
The cumulative number of financial IC cards issued in Heilongjiang Province exceeded one million, reaching more than 1.6264 million, an increase of more than 6 times compared with the beginning of 2012. The application of financial IC cards in the public service field has achieved remarkable results.
According to reports, in order to create a good acceptance environment for financial IC cards in Heilongjiang Province, since 2013, the Harbin Central Branch of the People's Bank of China has established a special inspection team to carry out special inspections on bank card networking for 19 acquiring institutions in the jurisdiction. On-site inspection feedback letters were issued to acquiring institutions with problems one by one, and rectification and re-inspection were carried out. In addition to commercial MIS systems, all institutions in Heilongjiang Province have completed the transformation of POS acceptance terminals. The completion rate of direct and indirect POS transformation has reached 99%, and the completion rate of non-connected POS terminal transformation has reached 14%; ATM transformation is progressing rapidly, in 2013 The annual general inspection of ATM acceptance of financial IC cards showed that the completion rate of Harbin ATM acceptance of financial IC cards reached 98%.
At the same time, the bank also made full use of television, radio, newspapers, Internet and other channels to carry out colorful "Promotion Month" activities with the theme of "Financial Services for People's Livelihood, Bank Cards Entering the 'Chip' Era" , enhance people's awareness of financial IC cards, and actively promote the application of financial IC cards in the field of public services: guide Harbin Bank and Harbin Municipal Tourism Bureau to sign a comprehensive strategic cooperation agreement, with the Sino-Russian "International Tourism and Culture Year" "As an opportunity, we use financial IC cards as a carrier to issue a series of products such as "Ice City Summer Capital" themed co-branded cards, and transform payment channels at border ports and major tourist attractions to meet the needs of domestic and foreign tourists during their travels and business in Heilongjiang Province. financial payment needs; guide Harbin Bank to sign a cooperation agreement with the Harbin Municipal Public Security Traffic Police Detachment to issue "Driver Information Card" products to more than 1.5 million drivers in Harbin; guide Bank of China Qiqihar Branch to cooperate with Northern Public Transport Group Company to issue financial Bus IC cards are used in many areas of people's livelihood such as public transportation, deposits and withdrawals, online banking, financial management, etc., truly achieving "one card in hand, worry-free life".
New specifications
The People's Bank of China officially released the "China Financial Integrated Circuit (IC) Card Specifications (V3.0)", which expands and expands the application functions of small-amount contactless payments. Improve and support dual-currency electronic cash payment applications, standardize the technical requirements for IC card Internet terminals, and enrich the security algorithm system.
The "China Financial Integrated Circuit (IC) Card Specifications (V3.0)" encourages single-chip cards, and it is expected that single-chip cards will become the mainstay of financial IC cards in the future. Among the issued financial IC cards, most are magnetic stripe chip composite cards, and most of these cards use magnetic stripe media during the card swiping process.