Recently, some credit card users have complained that the credit card they have been using has been reduced or even blocked for "no reason". What is the reason? Let me analyze it for you:

The first point: Banks’ control over credit card risks has been escalating recently, and those with card risks or violations may have their cards reduced or even blocked.

Which card-using behaviors are most likely to be risk-controlled by banks?

1. Repeatedly swiping cards on the same POS machine for several consecutive months.

2. Credit cards used Alipay too much for payment in a short period of time, and the amount of each transaction was close to the single limit.

3. Large transactions beyond normal business hours.

4. Credit cards have been short-term for a long time.

5. Frequently conduct integer single transactions.

Second point: Improper selection of POS machines, use of illegal POS machines or code-hopping, reduced or reduced POS machines

1. Illegal transfer of machines. According to my country UnionPay regulations, POS machines It can only be used in the registered location. If you move the machine across regions without permission, you will be warned or even frozen at the POS terminal.

2. Code hopping refers to jumping from one merchant type (industry) to another merchant type (industry). The payment company uses back-end technology changes to change merchants whose handling fees are in the standard category into reduced categories. Merchants, even 0-rate merchants, are then sent to the UnionPay system, and merchant fees are charged according to standard merchants. However, the fees charged by the card issuer and UnionPay are based on the fees charged to the payment company according to the changed merchant. The interest rate difference is the "income" brought by the payment company's code hopping. Although the payment company has benefited, the bank's income will inevitably be damaged, so it will be reduced or the card will be blocked.

3: Banks lose money by swiping their cards at discount or charity POS machines for a long time.

The third point: This kind of POS machine that has been blacklisted by UnionPay may also lead to derating and blocking of cards, and there may be people running away or not being paid at any time. It is recommended not to do so. use.

So how to avoid being derated and blocked?

1. Credit card code of conduct

1. Swipe your card frequently and have a large credit limit. It is best to swipe up to 70% of your credit limit every month.

2. Provide comprehensive information when applying for a card.

3. Try not to use credit cards to withdraw cash.

5. Avoid long-term overdue credit cards.

Second, choose a regular clearing machine that has passed safety certification and does not use a code hopping machine. This can not only protect the safety of your funds, but also help you quickly increase your limit.

The above pictures are all formal payment companies and they are relatively stable. You can use them as a reference.

That’s it for the introduction of how banks risk control POS machines.