1, pos machine set code is originally a low rate for Class A merchants to apply for other types of MCC merchants in order to save handling fees. For example, the normal charge for swiping a card at ktv is 100 yuan, and the merchant will be charged 1.25. However, if the merchant handles the barcode setter in the supermarket, it only needs to pay 0.38 or even less, which saves most of the expenses.

2.pos machine code hopping means that the third-party payment institution changes the A-type merchants (that is, standard merchants) who swipe their cards into B-type merchants (preferential merchants) or C-type merchants (public welfare merchants) through technical means, and then submits them to the UnionPay system, but still charges the merchants' handling fees according to Class A (that is, standard merchants).

Step 3 damage

1, triggering the early warning of the bank's risk control system, which is easy to be mistaken for cashing, so please choose a compliant merchant when choosing a POS machine and pass the certification of the People's Bank of China;

2. It is likely that the card will be blocked and the amount will be reduced. Such cases have appeared many times at present;

3. It will affect cash withdrawal by credit card.

Extended data

Code setting rules

Merchants are divided into four categories: catering and entertainment, general, people's livelihood and public welfare. Fees are charged to merchants, with the rates of 1.25%, 0.78% and 0.38% respectively, while public welfare merchants only charge fees for services++. Among the handling fees, the issuing bank, the acquiring institution (third-party payment company) and China UnionPay share the handling fees according to the ratio of "7: 2: 1" and count them into business income.

Many third-party payment institutions have taken advantage of this loophole, by forging false merchants, changing merchant names, merchant codes, merchant attribution and other information, or forging merchant access information, to achieve the purpose of applying the low zero deduction rate in violation of regulations.

Industry insiders estimate that this kind of "spelling code" behavior will make the issuing bank lose hundreds of millions of yuan, which is also the reason why UnionPay was punished this time. According to reports, in the fine list, remittance to the world, quick money and easy treasure are the key targets, and even a single province has been fined over 10 million yuan for its monthly business.

China UnionPay also specifically told the media that the punishment for "code matching" behavior is mainly to safeguard the interests of the issuing bank, and 90% of the fine will also be returned to the issuing bank.

Baidu Encyclopedia-Set Code