CBRC Central Bank Regulate Third Party Payment And Payment Institutions Affected

< p > recently, the CBRC and the Central Bank jointly issued the notice of the people's Bank of China on strengthening the management of business cooperation between commercial banks and third party payment Institutions [CBRC (2014) 10, hereinafter referred to as No. 10], regulating the cooperation between commercial banks and third party payment institutions, and requiring banks to make corresponding systems and contract revision work before June 30, 2014.

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< p > this is the last time the central bank has solicited opinions on the management of related business of the third party payment institutions, and has suspended the operation of the two-dimensional code (bar code) payment business since then.

Unlike last month, the CBRC led the operation.

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< p > guest keyword: payment limit < /p >

< p > according to customer risk tolerance, it can be temporarily adjusted < /p >.

< p > 10 requires banks to assess the risk tolerance of customers to determine the account associations, business types and paction limits related to third party payment institutions, including single payment limit and daily cumulative payment limit.

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< p > industry insiders say that this actually represents that the regulators have endorsed the actions of the four leading industries in the industry to reduce the payment limit.

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< p > however, the document also states that after the application is made by the customer and through authentication and identification, the single payment limit and the cumulative daily payment limit can be adjusted appropriately within the interim period.

As for the amount and the length of the interim period, the banks themselves decide.

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< p > < strong > key words: identity authentication < /strong > /p >

< p > < strong > increase bank certification, or affect the convenience of quick payment < /strong > < /p >

< p > 10 reiterates the importance of customer identity authentication. It is required that the third party payment institutions and banks should be identified by double identities when establishing business connections for the first time.

Prior to this, the third party payment institutions usually need to be identified when opening fast payment.

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< p > China Gold believes that this will affect the convenience and customer experience of fast payment.

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< p > < strong > key words: paction monitoring < /strong > /p >

< p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > > third party payment > /a > customer and paction information or forced sharing < /strong > /p >

< p > when commercial banks sign a cooperation agreement with the third party payment institutions, they need to pfer the large amount of funds to the clients to strengthen their identity authentication, so as to ensure that the clients pfer funds by themselves.

Timely notification to customers is required for large payment and suspicious payment.

The payment paction funds drawn from the bank account should be returned to the original bank account if the paction terminates or fails.

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< p > commercial banks should establish automated paction monitoring mechanism and risk monitoring model for customers to conduct pactions through the third party payment institutions. They can monitor the capital situation in real time and discover and handle abnormal behavior, cash in or fraud incidents in time.

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< p > "whether this item can be implemented depends on whether the payment institution can pmit the detailed paction information to the bank.

At present, banks can only see that there is a sum of money being traded through Alipay, but the use of funds can not be known.

A bank official said.

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< p > for this reason, CICC believes that customers and paction information are important assets of the third party payment companies. If they are forced to share with the banks in the future, they will affect the value of the data of the third party payment companies.

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< p > < strong > key words: < a href= > http://www.91se91.com/news/index_c.asp > risk > /a > prevention < /strong > /p >

< p > strong > no bank authorization, payment interface extended to shopping or restricted < /strong > /p >

< p > in strengthening the internal risk prevention of banks, No. 10 requires banks to cooperate with the third party payment institutions in the monitoring scope of operational risk monitoring system, especially for large and abnormal capital receipts and payments.

Banks should build secure network passages (such as private connections, VPN channels, etc.), and develop secure boundaries (such as deploying firewalls, DMZ isolation zones, etc.) to prevent cross-border access from third party organizations.

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< p > cross boundary access means that the function of fast payment is beyond the authorized scope of the bank.

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< p > at present, banks generally set restrictions on the use of payment interfaces, for example, they can only be used to pay for hydropower and gas. However, some third party payment institutions have widening the use of payment interface in operation, such as widening their purchases to shopping.

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< p > < strong > key words: < a href= "http://www.91se91.com/news/index_c.asp > > unified management < /a > < /strong > /p >

< p > < strong > Payment institutions have difficulty in breaking bank branches one by one. < /strong > < /p >

< p > 10 also stipulates that commercial banks should establish a unified management mechanism for the payment of deposit management business by the third party payment institutions. Without the written authorization of the head office, no branch shall directly cooperate with the third party payment agency to carry out the deposit management business and strengthen the supervision and management of the reserve payment.

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< p > industry insiders said that this would make it difficult for some of the large payment institutions to break through the branches one by one.

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