On April 25, the China payment and clearing Association (hereinafter referred to as the Association) announced that the heads of three relevant units were interviewed online on the problems found in the reporting process, such as the transfer or misappropriation of online payment interfaces by special merchants.
The reporter noted that this is not the first time the association has interviewed member units on relevant issues. In recent years, the association has interviewed relevant heads of many institutions on relevant violations. According to the statistics of the reporter of Securities Daily, 25 institutions have been cancelled by the association since this year. The reporter also noted that in the past briefings of the association, the names of the interviewed member units were not disclosed.
involving the embezzlement of online payment interface by special merchants
According to the information released by the association, in response to the problems found in the reporting and handling from October to December 2021, including the misappropriation of Merchant Collection code by special merchants, the transfer or misappropriation of online payment interface by special merchants, the development of bank card acquiring business beyond the approved business coverage, non-compliance of capital settlement, exceeding the limit of payment account, the heads of three relevant units were interviewed.
It is reported that during the interview, the association reported the violation problems of various units, and proposed to further strengthen the internal control and compliance management, standardize the network access audit of special merchants, strengthen the inspection, strengthen the transaction monitoring and payment account management, and further strengthen the self-discipline management requirements such as the protection of consumers' rights and interests. At the same time, he stressed that he would continue to track and understand the rectification of the interviewed unit.
In fact, the reporter noted that this is not the first time the association has interviewed the institution on the issue of violations. Last year, the association also interviewed relevant heads of institutions on violations. For example, in May 2021 and December 2021, the Association informed the principals of 10 relevant units about the misappropriation of Merchant Collection code, transfer or misappropriation of network payment interface by special merchants.
It should be noted that from the reasons for the interviews of illegal institutions in the past two years, the illegal problems such as the misappropriation of Merchant Collection code by special merchants, the transfer or misappropriation of online payment interface by special merchants are the key areas of supervision.
Su Xiaorui, senior analyst of Analysys analysis financial industry, told the Securities Daily, "the problem of special merchants has always been the weak compliance of Payment institutions. In the previous various fines involving Payment institutions, the management of special merchants is not standardized, which has become the 'hardest hit area' of payment compliance. This notification is a powerful supplementary means to improve the supervision work, and also plays a warning role for other institutions."
\u3000\u3000 "It is very necessary for the association to interview member units due to violations. Special merchants misappropriate Merchant Collection code and online payment interface without authorization, which is easy to be used by money laundering and distribution platforms. Legitimate and compliant merchants generally do not need to obtain payment services through misappropriation interface. Once misappropriation of interface occurs, it often involves illegal and illegal businesses, because these merchants cannot apply for payment interface and realize collection through legitimate channels." Wang Pengbo, a senior financial analyst at Broadcom consulting, told the Securities Daily.
payment account exceeding the limit is a new problem
At present, the member units of the association are mainly divided into several categories: Chartered payment and clearing organizations, banks, financial companies, non bank payment institutions and related institutions, local payment and clearing associations, international card organizations, etc. Among them, there are 180 Bank members and 200 non bank payment institution members.
Yu Baicheng, President of zero one research institute, told the reporter of Securities Daily that interviewing illegal institutions is the conventional way of industry compliance guidance of the association in recent years. The content of this interview mainly involves the management of special merchants by payment institutions and daily business compliance. Among them, the exceeding limit of payment account is a new problem. He stressed, "in the regulatory measures, there are four requirements for the management of special merchants of Payment institutions. The first is to strictly audit special merchants, the second is to strictly manage the acceptance terminal, the third is to strengthen the risk monitoring of acquiring business, and the fourth is to improve the classified inspection mechanism of special merchants. In the future, institutions need to strengthen the management of the above requirements."
Wang Pengbo further analyzed and pointed out that "the limit of payment account is a new problem in this interview notification. Or it may be that the payment institutions have not strictly implemented the measures for the management of online payment business of non bank payment institutions, which divides the real name authentication accounts into three categories, requiring different balance payment functions and balance payment limits of different types of accounts, which should be paid attention by the institutions."
In addition, the association has also shown a tightening trend in member management. In addition to interviewing illegal institutions, since this year, the association has issued the announcement on canceling membership for many times to strengthen the management of member units. According to incomplete statistics by the reporter of Securities Daily, since this year, the association has cancelled the membership of 25 institutions, including banks and Payment institutions.
Wang Pengbo said, "generally speaking, the payment industry is in a situation of strict supervision. While strengthening the awareness of compliance, we should also face the changes in the industry. It can be predicted that the regulatory authorities will further curb illegal acts in the payment industry and severely crack down on industrial chaos in the future."
Su Xiaorui said that judging from the interview frequency of the association in recent years, it is expected that member units with violations will be interviewed in the future. The organization should not have any luck. Instead, it needs to find out and fill in the gaps according to the current regulatory situation, timely fill in the shortcomings of systems and risk control, implement the specific responsibilities to people, and continuously improve the level of business and compliance.
