Strictly control credit card cash out, Alipay, Tenpay and other institutions increase the code
The whole process of containment before and after the event
Just now, a head payment institution has issued a notice.
On September 1, a reporter from Beijing Business Daily noticed that WeChat Pay Merchant Tong issued an initiative to further strengthen the risk prevention and control of credit card business. , the credit card business risk management and control measures throughout the entire life cycle of merchant management.
At the same time, all partners need to further strengthen the monitoring, analysis, identification and control of abnormal transactions of credit card cash-out and other risks, and actively verify and handle merchants and transactions suspected of cash-out and other risks, and submit them in accordance with laws and regulations; in addition, strict Control the flow of credit card funds and strengthen the management of credit card transaction limits for merchants.
Image source: WeChat Pay Merchant Link
In addition to WeChat payment, on September 1, Alipay also told a reporter from Beijing Business Daily that it has taken risk prevention and control measures throughout the life cycle to strengthen the management of illegal transactions such as credit card cash out from merchant access, transaction monitoring and other links.
Specifically, first of all, Alipay implemented the real-name system management of merchants in strict accordance with the regulatory requirements, established a special risk strategy for the characteristics of illegal cashing out of credit cards, realized real-time monitoring, identification and interception of transaction risks, and established identification and crackdown plans for cashout platforms.
“For the cash-out risk merchants detected by inspection, we will take corresponding punishment measures such as blocking transactions, limiting or closing credit card channels, prohibiting the inflow and outflow of account funds, delaying fund settlement, and merchants’ liquidation according to the risk concentration and level.” Alipay said. .
In addition, Alipay will also carry out joint prevention and control with partners such as clearing institutions, payment institutions and banks for the risk of credit card cashing out of affiliated merchants. It is better to identify and manage merchants more quickly, and effectively prevent the occurrence of illegal risks such as credit card cash out.
In fact, whether it is online payment or offline acquiring, many payment institutions have achieved remarkable results in strictly controlling credit card cash-out. For example, the relevant person in charge of a payment company in Shanghai pointed out that by strictly controlling the quality of special merchants’ access to the network in advance, it can confirm the merchants’ operating conditions and real willingness to access the network, implement the requirements of the real-name system for merchants, and ensure the authenticity, integrity and validity of the merchants’ network access information; at the same time; , and will also carry out risk level classification management for online merchants, and refuse to establish business relationships with high-risk merchants.
“On the one hand, the risk control model can be used to monitor merchant transactions and intercept fraudulent transactions in real time. In addition, after the event, risk merchants will be strictly dealt with, and a zero-tolerance policy will be adopted for cashing out high-risk merchants.” The aforementioned Shanghai Payment Company is responsible for people added.
Even if the business scenario focuses on online payment institutions on the B-side, they also check and fill in the gaps in the credit card cash-out behavior. On September 1, the person in charge of a payment agency company in Beijing also told a reporter from Beijing Business Daily that it is mainly based on B2B business, focusing on providing payment services for enterprises, and credit card transactions account for less than 2%. But despite this, in terms of merchant access, the company will also limit the use of credit cards for payment only in consumer scenarios. For payment limit, number of transactions, concentration (cardholder concentration, credit card transaction concentration), refund There are strict requirements for the proportion of (generally required to be returned to the original route), etc. In addition, a related monitoring model is also made for credit card cash out in transaction monitoring to monitor credit card transactions.
Su Xiaorui, a senior analyst in the financial industry of Analysys, said that these strict control measures of payment institutions, on the one hand, are aimed at responding to the spirit of supervision and laying a solid foundation for maintaining a healthy and good credit card market order; on the other hand, they are also beneficial to their own internal Risk prevention and control, so as to further improve the quality of credit card transactions.
Difficulties in identifying cash-out transactions
These prevention and control actions of payment institutions are inseparable from the “Notice on Further Strengthening Risk Prevention and Control of Credit Card Business” issued by UnionPay in August. The “Notice” focuses on five aspects: effectively fulfilling the main responsibility of merchants’ risk management, strictly regulating the authenticity management of merchants, further strengthening the transaction monitoring of cash-out risks, fully investigating and verifying suspected cash-out risk cases, and strengthening cash-out risk merchant management and control measures. Prevention and control have drawn a “red line”.
However, it cannot be ignored that despite the blockade, there are still many irregularities in the market, and payment institutions have also encountered many difficulties in the process of strictly controlling cash out.
For example, an employee of a payment company bluntly stated that the biggest difficulty in the monitoring process of cash out is to judge the real transaction scene of the merchant and the transaction behavior of the cardholder. Many cash out transactions involve the joint participation of the cardholder and the merchant. Cash-out merchants are easier to find, but if it is a mix of normal transactions and cash-out transactions, it is more difficult to find. In addition, large cash outs are easier to spot, while smaller cash outs are harder to detect.
“In addition, there is a practical problem that cash transactions are profitable for some institutions, especially offline acquirers. Therefore, complete control of cash transactions is insufficient for payment institutions.” The person mentioned.
The relevant person in charge of the aforementioned Shanghai payment institution said that the difficulty of strictly controlling cash-out transactions lies in the products, and some products are easily used by risky merchants for cash-out or illegal transactions. To solve these problems, the compliance and risk control departments must intervene before the product is launched to the market to prevent the product from being used.
In addition, a person from a payment institution said that some of the suspected cash-out transactions are currently evasive behaviors such as combined split transactions, real-scene alternate transactions, and transactions with multiple payment methods, which increase the difficulty of identifying and identifying cash-out transactions.
“At present, there are two difficulties in preventing cash out.” Wang Pengbo, a senior analyst in the financial industry of Broadcom Consulting, further told the Beijing Business Daily reporter that one is that there are many stakeholders in the relevant industry chain and have realistic needs; the second is that In the context of the digital economy, non-bank payment institutions, especially those affiliated to Internet platforms, mostly serve small and micro merchants or individual operators, and generally face the problems of wide coverage and scattered business operations. In his view, this is actually similar to the difficulties encountered in anti-money laundering. It is necessary to strictly implement relevant regulations such as one machine, one code, and use technical means to monitor.
“In fact, our company is also planning to increase the analysis of risky transactions and improve the risk control and monitoring parameters to more effectively intercept suspicious transactions.” said the aforementioned payment institution source.
still a protracted battle
The risk monitoring and prevention of credit card business is a protracted battle for payment institutions.
In response to the follow-up measures, WeChat payment merchants generally said that they will continue to strengthen the risk monitoring and prevention of credit card business, and improve the risk management and control mechanism. If it is found that the partner fails to effectively implement the regulatory requirements and the merchant has credit card transaction risks, corresponding measures such as adjustment of the transaction limit and suspension of cooperation will be taken according to the default and risk situation.
Alipay said that at present, it is also popularizing the risks and hazards of cashing out to special merchants and users through multiple channels such as the merchant service platform, Alipay Security Center, Ant Classroom, and Alipay’s official Weibo. At the same time, it organizes online training from time to time to publicize typical cases, methods, and risk prevention measures for cashing out risks.
For follow-up prevention and control, Wang Pengbo suggested that, first of all, payment institutions should strictly abide by relevant regulations, and all parties in the industry chain should pay attention to and earnestly fulfill their responsibilities in preventing cash out and anti-money laundering. The Notice requires constraints such as one machine, one code, the binding of the acceptance terminal and the five elements of the receipt.
In terms of institutional development, Wang Pengbo suggested to gradually expand revenue channels from a single source of income, such as handling fees and rates, towards digital services for enterprises. Platform institutions such as WeChat, Alipay and UnionPay should play a guiding role. Put an end to the dependence on gray income such as cash out.
Su Xiaorui said that in the follow-up, payment institutions still need to strengthen merchant authentication and identification, control the merchant authentication mechanism from the source, and prevent unscrupulous subjects from fraudulently using merchant identities, which can not only prevent criminals from using merchant identities to transfer funds, but also prevent consumers. Faced with the potential risk of capital loss in front of the so-called “certified merchants”, it has continued to make efforts in consolidating compliance work such as anti-money laundering, building a strong security line, and creating a good shopping and consumption environment for financial consumers.