The central bank requires eight payment institutions to stop developing new merchants on April 1. Industry insiders said——

Recently, the central bank issued a document requiring eight payment institutions to stop developing new merchants on April 1. The development of new merchants has been stopped since then, and branches of the central bank have punished eight institutional legal persons and branches based on pre-authorization inspections. The central bank stated that some acquirers have problems such as failure to implement the real-name system for special merchants, inadequate transaction monitoring, and poor handling of risk events.

It is reported that from April 1st, including Huifu Tianxia, ??Yibao Pay, Suixingfu, Fuyou, Kayou, Haike Rongtong, Shengfutong, Jiefu Ruitong, etc. Eight payment institutions have stopped accepting new merchants nationwide. There are two other companies that need self-examination: UnionPay Business and Guangdong Jialian.

The central bank’s Weibo announced the reasons for the investigation: From December 2013 to January 2014, there were many risk incidents across the country in which criminals used pre-authorized transactions to cash out. After verification, some acquirers have problems such as failure to implement the real-name system for special merchants, inadequate transaction monitoring, and poor handling of risk events. The People's Bank of China dealt with the matter in accordance with the law according to the seriousness of the case.

The central bank stated that relevant units can expand new merchants after the self-examination and clearance are completed and the acceptance is passed by the People's Bank of China.

Pre-authorization business refers to the special merchant obtaining the cardholder’s payment commitment from the card issuer within 30 days within a certain proportion of the pre-authorized amount, and reporting the cardholder to the card issuer after the cardholder obtains the goods or receives the service. Carry out acceptance business.