Credit card related laws
Legal analysis: Regarding the relevant provisions of bank cards, according to Article 196 of the Criminal Law, the crime of credit card refers to the use of credit cards for the purpose of illegal possession, fictitious Acts of concealing facts, concealing the truth, and defrauding large amounts of public and private property. Credit card crime is a type of crime. The relationship between the crime and the crime is special law and general law. If the perpetrator uses credit card as a criminal tool to carry out activities, according to the principle that special law is superior to general law, he will be convicted and punished for this crime. . It refers to the behavior of using credit cards to carry out activities for the purpose of illegal possession, violating credit card management regulations, and defrauding a large amount of property. The use of credit cards generally refers to the use of counterfeit or invalid credit cards, or the fraudulent use of other people's credit cards or malicious overdrafts. The credit card is a criminal tool in this crime, not the object of the crime. Therefore, credit card crimes, in short, are criminal activities committed by using the credit embodied in credit cards.
Legal basis: Article 196 of the Criminal Law of the People's Republic of China and the People's Republic of China. Anyone who engages in credit card activities under any of the following circumstances and the amount is relatively large shall be sentenced to not more than five years or criminal detention, and A fine of not less than 20,000 yuan but not more than 200,000 yuan shall be imposed; if the amount is huge or there are other serious circumstances, the fine shall be not less than five years but not more than 10 years, and a fine of not less than 50,000 yuan but not more than 500,000 yuan; if the amount is particularly huge or there are other particularly serious circumstances If the circumstances are serious, he or she shall be sentenced to not less than 10 years in prison or fined not less than 50,000 yuan but not more than 500,000 yuan, or have property confiscated:
(1) Using a forged credit card, or using a false identity card to fraudulently obtain the credit card. Credit card;
(2) Using an expired credit card;
(3) Pretending to use another person’s credit card;
(4) Malicious overdraft.
The term "malicious overdraft" as mentioned in the preceding paragraph refers to the cardholder's behavior of overdrafting beyond the prescribed limit or within the prescribed period for the purpose of illegal possession and failing to return the card after being called upon by the card-issuing bank.
Anyone who uses credit cards concurrently shall be convicted and punished in accordance with the provisions of Article 264 of this Law.
Measures for the Supervision and Administration of Credit Card Business of Commercial Banks
Chapter 1 General Provisions Article 1 is to regulate the credit card business of commercial banks, protect the legitimate rights and interests of customers and banks, and promote the healthy and orderly development of credit card business , These Measures are formulated in accordance with the "Banking Supervision Law of the People's Republic of China and the People's Republic of China", the "Law of the People's Republic of China and the People's Republic of China on Commercial Banks", the "Regulations of the People's Republic of China and the People's Republic of China on the Administration of Foreign-funded Banks" and other laws and regulations . Article 2 Commercial banks operating credit card business shall strictly abide by national laws, regulations, rules and relevant policies and regulations, and adhere to the principles of equality, voluntariness and good faith. Article 3 Commercial banks operating credit card business shall protect the legitimate rights and interests of customers and the security of relevant information in accordance with the law. Relevant information shall not be used for purposes other than the Bank's credit card business without the authorization of the customer. Article 4 Commercial banks operating credit card business shall establish and improve credit card business risk management and internal control systems, strictly implement authorization management, and effectively identify, evaluate, monitor and control business risks. Article 5 When commercial banks operate credit card business, they shall fully disclose relevant information to cardholders, reveal business risks, and establish and improve corresponding complaint handling mechanisms. Article 6 The China Banking Regulatory Commission and its dispatched offices shall supervise and manage the credit card business of commercial banks in accordance with the law. Chapter 2 Definition and Classification Article 7 Credit cards as mentioned in these Measures refer to various media that record cardholder account information, have bank credit limit and overdraft functions, and provide cardholders with relevant banking services. Article 8 The term “credit card business” as mentioned in these Measures refers to the banking services provided by commercial banks using bank cards with credit lines and overdraft functions, which mainly include card issuance business and acquiring business. Article 9 The term “card issuance business” as mentioned in these Measures refers to the relevant banking services that the card-issuing bank contracts with qualified customers to issue credit cards and provides them based on the evaluation results of the customers.
The card issuance business includes marketing and promotion, credit approval, card production and issuance, transaction authorization, transaction processing, transaction monitoring, fund settlement, accounting processing, dispute handling, value-added services and debt collection and other business links. Article 10 The term “card issuing bank” as mentioned in these Measures refers to a commercial bank that has been approved by the China Banking Regulatory Commission to engage in credit card issuance business and assumes the relevant responsibilities for risk management of the card issuance business. Article 11 The term “card-issuing business service agencies” as mentioned in these Measures refers to legal entities or other organizations that sign contracts with card-issuing banks to assist them in providing credit card business services.
Article 12 The term “acquiring business” as mentioned in these Measures refers to the services provided by commercial banks to merchants and others to accept credit cards and complete related fund settlements.
The acquiring business includes merchant qualification review, merchant training, acceptance terminal installation and maintenance management, obtaining transaction authorization, processing transaction information, transaction monitoring, fund advances, fund settlement, dispute handling and value-added services and other business links. Article 13 The term “acquiring bank” as mentioned in these Measures refers to a commercial bank that provides credit card acquiring business services to specially appointed merchants or provides settlement services for credit card acquiring business in accordance with the contract, and assumes the relevant responsibilities for risk management of the acquiring business. Article 14 The term “acquiring business service agency” as mentioned in these Measures refers to the legal person institution or other organization that signs a contract with the acquiring bank or the settlement bank of the acquiring business to assist it in providing credit card acquiring business services. Article 15 Credit cards issued by commercial banks are divided into personal cards and corporate cards according to the different objects of issuance. Among them, corporate cards are divided into business travel cards and business purchasing cards according to their uses.
Business travel card refers to a credit card that commercial banks sign contracts with government departments, legal entities or other organizations to establish travel expense reimbursement and repayment relationships, and provide daily business expenses and financial reimbursement services to their staff.
Business purchasing card refers to a credit card that commercial banks sign contracts with government departments, legal entities or other organizations to establish procurement expenditure reimbursement and repayment relationships, and provide them with services related to procurement expenditures such as office supplies and office matters. Article 16 The term “students” as mentioned in these Measures refers to students studying full-time in educational institutions. Chapter 3 Business Access Article 17 When a commercial bank applies to open credit card business, it shall meet the following basic conditions:
(1) The company has good corporate governance, the main prudential supervision indicators comply with the relevant regulations of the China Banking Regulatory Commission, and it has the relevant business requirements Develop appropriate organizational structures and rules and regulations, and have sound and effective internal control, risk management and accountability mechanisms;
(2) Have a good reputation and have a complete and effective internal control mechanism and case prevention and control system. The last 3 There were no major violations of laws or regulations or major malignant cases during the year;
(3) Have directors, senior managers and qualified practitioners who meet the qualifications for office. The senior managers shall have at least one person with professional knowledge and management experience in the credit card business, have the necessary technical personnel and management personnel to carry out the credit card business, and fully implement hierarchical authorization management;
(4) Have Business premises, related facilities and necessary information technology resources that are suitable for business operations;
(5) A business system that complies with laws, regulations and business management requirements has been established within the country, and has the ability to protect relevant business system information Technical capabilities for safety and operation quality;
(6) To open credit card business, one must have foreign exchange settlement and foreign exchange business qualifications approved by the foreign exchange administration department of the State Council and foreign exchange business qualifications (or foreign exchange business qualifications) approved by the China Banking Regulatory Commission Scope);
(7) Meet other prudential conditions prescribed by the China Banking Regulatory Commission.
Credit Card Laws and Regulations
In April 2016, the People's Bank of China issued the "Notice of the People's Bank of China on Matters Concerning the Credit Card Business", which came into effect on January 1, 2017.
The "Notice" requires the implementation of upper and lower limit management on credit card overdraft interest rates. The upper limit of overdraft interest rates is 5/10,000 daily interest rates, and the lower limit of overdraft interest rates is 0.7 times the daily interest rate of 5/10,000ths.
Mainly based on the following considerations: First, the implementation of step-by-step and gradual reforms will help card issuers further accumulate pricing data and experience during the transition period, and guide them to improve the credit card interest rate pricing mechanism.
Second, the credit card risk control and pricing capabilities of each card issuer are uneven. The upper and lower interest rate guidance will help prevent individual card issuers from blindly cutting prices and engaging in price wars, resulting in unfair competition and high-risk customers. Excessive borrowing will increase credit risks and cause partial chaos in the market.
Third, while the information disclosure mechanism needs to be strengthened, setting an upper limit on overdraft interest rates will help prevent individual card issuers from unreasonably charging excessive interest and protect the legitimate rights and interests of cardholders.
On May 25, 2021, the Supreme People’s Court issued and implemented the “Regulations of the Supreme People’s Court on Several Issues Concerning the Trial of Bank Card Civil Cases”, clarifying that: the people support cardholders’ legal relationships based on debit card and credit card contracts. Request the card issuer to return the principal and interest of the deposit or overdraft, liquidated damages and compensate for the losses caused by the stolen fraudulent use; at the same time, it does not support the card issuer's request to the credit card holder to repay the principal and interest of the overdraft, liquidated damages, etc.
Credit limit
The credit limit refers to the maximum overdraft limit that the bank gives you when approving your credit card. You can only spend within this limit. If you exceed the limit, This limit cannot be used for regular card payments. The credit limit is determined based on a comprehensive evaluation based on the information you filled in when applying for a credit card and the relevant supporting documents provided. The main card and supplementary card share the same limit.
Generally, the RMB limit and the USD limit in a dual-currency credit card can be converted to each other. For example, if your limit is 30,000 RMB, when you use the card overseas, your credit limit will be Approximately equivalent to US$5,000.
The credit limit will be adjusted regularly by the bank, but you can proactively provide relevant proof of financial resources to request adjustment of the credit limit. In addition, when you need a higher limit within a certain period of time when traveling abroad, moving to a new home, etc., you can request to increase the temporary credit limit.
What are the laws and regulations on credit cards?
The laws and regulations involved in credit cards are: 1. "Criminal Law of the People's Republic of China". 2. Credit card business management measures. 3. Others include the "Decision on Punishing Crimes that Disrupt Financial Order" and "Interpretations of the Supreme People's and Supreme People's Procuratorate on Several Issues concerning the Specific Application of Laws in Handling Criminal Cases of Impairing Credit Card Management". "Interpretations of the Supreme People's and Supreme People's Procuratorate on Several Issues Concerning the Specific Application of Laws in Handling Criminal Cases Obstructing the Management of Credit Cards" Article 1 "Measures for the Administration of Credit Card Business" Article 3 "Measures for the Administration of Credit Card Business" Article 22 "People's Republic of China *Article 196 of the Criminal Code of the Republic of Korea
That’s it for the introduction of credit card management regulations.