Currently, there are repeated bans on personal POS machines that use fake transactions to cash out credit cards. Today, existing banks have begun to restrict this behavior.

According to new media reports such as the Business School, Hua Xia Bank has recently made adjustments to credit card consumption points, and transactions accepted by some third-party payment institutions will no longer earn points. 19 third-party payment institutions including Kayou, Lakala, Shanghai Remittance, and UBS have been blocked.

This is the third third-party payment institution commercial bank after Minsheng Bank and China Everbright Bank.

According to reports, the bank’s move is aimed at curbing cash-out, points arbitrage and other cash-out activities on credit cards. Third-party payment institution POS has repeatedly banned machine cash-out. Industry experts said that some third-party payment institutions work with users to cash out through POS machines and deliberately create false business transaction documents. The bank's black behavior is mainly used to prevent credit card and receipt institutions from being malicious and easily prevent financial risks.

This kind of financial risk mainly refers to illegal and criminal activities such as drug trafficking and drug trafficking.

Experts said that after a third-party payment institution becomes the acquirer of a credit card issuing bank, it is often POS machines, special merchants, etc. that jointly create false commercial transaction documents for the purpose of withdrawing cash. The phenomenon is very common and very serious.

The purpose of hacking third-party payment institutions with bank credit cards is mainly to increase the entry threshold, clean up unqualified third-party payment institutions, prevent the absence of genuine commodity transaction documents, and prevent false transactions to obtain cash. In the long term, it is to prevent financial risks and irregularities, as well as illegal and criminal activities such as drug trafficking and drug trafficking.

Lakala's 2020 mid-term report shows that the company's operating income was 2.506 billion yuan, a year-on-year increase of 0.38; the net profit of shareholders of listed companies was 436 million yuan, a year-on-year increase of 18.99.

In Lakala’s interim report, the company launched a new round of market expansion plan in the first half of this year to accelerate the number of new small and micro receipt terminals (POS). By the end of June, the number of new terminals It has exceeded 7 million units, accounting for about 30% of the number of new similar terminals in the industry, driving the company's payment technology business revenue to continue to grow since March, with a year-on-year growth of 8.21 in the second quarter.

According to media reports, the bank credit cards of three banks, including Huaxia Bank, have blocked Lakala and others from credit card points for their transactions. This is a heavy blow to Lakala.