POS Pre Authorization Vulnerability Detonating Cash

< p > if there is a credit card with a credit limit of 20 thousand yuan, as long as users deposit 1 million, the quota will be expanded to 1 million 150 thousand on the pre authorized POS machine (which can exceed 15%), and 1 million 150 thousand yuan will be set up by credit card.

Using the pre authorization of < a href= "http://www.91se91.com/news/index_cj.asp" > POS < /a >, the credit card has been cash in. This year, a large scale explosion broke out. The bank, UnionPay and third party payment enterprises triggered a risk of pre authorization risk.

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< p > reporter learned from the third party payment enterprise that the amount involved is about 2 billion yuan, and the merchant capital has been frozen, and the bank is collecting relevant cash capital.

"UnionPay discovered this problem in mid January, and immediately sent the third party payment to the enterprise."

A Shanghai third party payment company executives told reporters that the UnionPay side said that the parties have taken multiple measures and are working together to minimize the risk loss caused by this incident.

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< p > < strong > pre authorization causes credit card cash crisis < /strong > < /p >.

< p > an industry insider told reporters that within a month of the beginning of the year, some cardholders in Zhejiang, Fujian and other parts of the credit card paid large sums of money to the credit card. The pre authorization paction was required to be paid and accepted within the pre authorized amount of 115%, and colluded with the special merchants who support the pre authorized pactions, and conspire to acquire the additional credit limit of the issuing bank.

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"P" "should be national, not only the above."

A third party payment executive in Shenzhen told reporters.

It is reported that the industry once spread, the risk involved in the amount of nearly 10 billion yuan.

However, the UnionPay side denied this statement, saying that according to the information provided by the current issuing bank and acquirer, the amount involved should be far lower than the legends of the outside world.

The UnionPay said that the risk incident has been effectively controlled, and there are basically no new cases.

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< p > for this, the head of the marketing department of a third party payment enterprise in Shanghai revealed to reporters yesterday that the current estimate of the pre authorized PO S machine cash is expected to cover 2 billion yuan.

UnionPay told reporters that, after monitoring the abnormal paction, the UnionPay immediately made risk hints to the issuing and receiving institutions, and put forward corresponding business proposals. At the same time, the cooperative card issuing and receiving institutions jointly responded, and established the information sharing and communication mechanism between the bank account holders and illegal merchants involved in such pactions, and led the linkage between the incident and the public security organs.

After issuing the risk reminder of the UnionPay, a number of issuing and receiving institutions took timely risk control measures to effectively control the risk expansion.

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< p > < strong > > a href= "http://www.91se91.com/news/index_cj.asp" > cash fund < /a > was frozen 2 billion yuan < /strong > /p >

< p > "UnionPay discovered this problem in mid January, and immediately sent the third party payment to the enterprise."

A Shanghai third party payment company executives told reporters that the UnionPay asked the third party payment companies to freeze the funds of the merchants who were cash in. Meanwhile, they demanded the bank to recover cash as soon as possible.

"After all, most of the funds are not yet overdue."

The above third party payment executives told reporters that the industry is not expected to exceed 100 million yuan risk exposure.

However, he said that some small third party payment companies may not freeze funds completely because of technical problems.

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< p > it is reported that there are bankers who believe that the pre authorization of the PO S machine has increased the credit risk exposure of issuing banks.

As these pactions usually have a large sum, for example, a paction of a pre authorized 2 million yuan is taken as an example. If the actual settlement reaches 15%, the final settlement amount will be 2 million 300 thousand yuan. If the cardholder's credit card size is 10 thousand yuan, the additional credit card amount of the issuing bank can be increased by 290 thousand yuan to enlarge the credit risk exposure of the issuing bank.

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< p > < strong > whose responsibility is it? The parties are evasive < /strong > < /p >.

< p > in fact, due to risk exposure, the responsibility of causing such risks has become the focus of debate among all parties.

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< p > the UnionPay said that the definition of the relevant responsibilities still needs to be identified after the concrete investigation results come out.

And a bank retail department responsible person told reporters that the main responsibility for the third party payment enterprises, it is precisely because of the third party payment company, the business of the lax censorship, arbitrary issuance of pre authorized PO S machine led to cash in the incident.

In addition, he believed that the incident was due to the loopholes in the pre authorization rules of the UnionPay PO S, and the UnionPay also had some responsibility.

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< p > it is reported that after the incident, the card issuing bank has noticed the risk of this kind of cash and closed the credit card's "overrun" function.

The credit card center of a state-owned bank has recently abolished the policy of "pre authorization quota exceeding 15%" for credit cards, that is, pre authorized pactions can only be carried out in strict accordance with the remaining amount within the card.

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< p > in the interview, the UnionPay said that pre authorization is the basic function of credit card, and is generally committed by the card issuers to make payment in future for merchants.

Pre authorization has been widely used in hotels, hotels and other industries since the birth of credit cards. Pre authorized pactions are commonly used in the international bankcard market.

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< p > for banks, the third party payment enterprises are not recognized.

"Mainly because banks have not seriously examined applicants' information on issuing credit cards in order to expand the scale of credit cards."

The above third party payment enterprises in Shanghai disclosed to reporters.

In fact, there are not many fake cards and black cards in this incident.

A person familiar with the matter told reporters that after the relevant cases were discovered gradually, UnionPay summoned the third party payment companies and banks together, but no one would give in to the question of responsibility.

"Now we are putting out the fire first, and the next step is to recognize the problem."

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< p > < strong > link < a href= "http://www.91se91.com/news/index_cj.asp" > pre authorized < /a > < /strong > /p >

< p > pre authorized business refers to the payment undertaking made by the special merchant to the card issuer within a certain proportion of 30 days within the pre authorized amount, and to the card issuer after the cardholder obtains the goods or receives the service.

It is popular to say that it is to freeze some of the funds in the bank card as a deposit and then settle the business according to the actual amount of consumption.

Generally speaking, the amount of freezing can not exceed 115% of the amount of pre authorized paction.

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