If there is a credit card with a credit limit of 20,000 yuan, as long as the user deposits 100,000 yuan, on the pre-authorized POS machine (which can exceed 15%), the quota will be expanded to 1.15 million, and 1.45 million can be set by swiping the card. Yuan funds. With the pre-authorization of POS machines, credit card cashing, this year's massive outbreak, is triggering a pre-authorization risk event in banks, UnionPay, and third-party payment companies.
Nandu reporter learned from third-party payment companies that the current amount involved in the cash is about 2 billion yuan, the merchant funds involved have been frozen, and the bank is collecting relevant cash funds. "UnionPay found this problem in mid-January and immediately sent a letter to a third-party payment company." A third-party payment company executive in Shanghai told the Southern Reporter that UnionPay said that the parties have taken multiple measures and are working together to make this happen. The risk loss caused by the second event is minimized.
Pre-authorization triggers credit card cash crisis
The pre-authorization vulnerability of the PO S machine is expanding. According to the above case, the original credit card with a credit limit of only 20,000 yuan can be used to pay 1.15 million yuan in cash through the P0S machine. This means that if you deposit 1 million, you can put more than 150,000 and deposit 10 million, you can put out 1.5 million more.
An industry insider told the Southern Reporter that during the first year of the year and the beginning of the year, some cardholders such as Zhejiang and Fujian had to make a large amount of payment into the credit card, and the pre-authorization to complete the transaction must be within 115% of the pre-authorization amount. The business characteristics of the payment acceptance collude with some special merchants that support the pre-authorization transaction, and collude to obtain the additional credit line of the issuing bank.
"It should be national, not only the above places." A third-party payment enterprise executive in Shenzhen told the Southern Reporter. It is reported that the industry has been circulating for a long time, the risk involved in the amount of nearly 10 billion yuan. However, UnionPay denied this claim, saying that according to the information provided by the current issuing banks and acquirers, the amount involved in the incident should be much lower than the external legend. UnionPay said that the risk event has been effectively controlled and there are basically no new cases.
In response, a person in charge of the marketing department of a third-party payment company in Shanghai revealed to the reporters in Nandu yesterday that the current industry estimates that the pre-authorization of the PO S machine is expected to involve an amount of 2 billion yuan. UnionPay told the Southern Reporter that after monitoring the abnormality of the transaction, UnionPay immediately issued a risk warning to the issuing card and the acquiring institution, and proposed corresponding business processing suggestions. At the same time, the joint issuing and receiving institutions jointly responded and established the relevant The bank card account of such transactions and the information sharing and exchange mechanism of unscrupulous merchants; and led the event to be linked with the public security organs. After receiving the risk warning of UnionPay, a number of card issuing and acquiring institutions took timely risk control measures to effectively control the risk expansion.
Cash out of funds is frozen 2 billion yuan
“UnionPay discovered this problem in mid-January and immediately sent a letter to a third-party payment company.†A third-party payment company executive in Shanghai told the Southern Reporter that UnionPay required third-party payment companies to freeze the cash of the merchants that were cashed out. The bank will recover the cash funds as soon as possible. "After all, most of the funds are not overdue." The above-mentioned third-party payment company executives told the Southern Reporter that the industry expects that the risk exposure will not exceed 100 million yuan. However, he said that there may be some small third-party payment companies that have not completely frozen cash funds due to technical problems.
It is reported that some bankers believe that the pre-authorization of the PO S machine has increased the credit risk exposure of the issuing bank. As these transactions usually have a large amount, for example, a pre-authorization of 2 million yuan of transactions, if the actual settlement is 15%, the final settlement amount is 2.3 million yuan; assuming the cardholder's credit card amount is 10,000 yuan, the additional set The issuing bank's credit limit of 290,000 yuan has enlarged the credit risk exposure of the issuing bank.
Whose responsibility? All parties are pushing away
In fact, due to the risk exposure, the issue of liability for such risk events has become the focus of debate.
UnionPay said that the definition of relevant responsibilities must be determined after the specific investigation results are obtained. The relevant person in charge of a bank retail department told the Southern Reporter that the main responsibility lies with the third-party payment company. It is precisely because of the third-party payment company that the review of the merchant is not strict, and the arbitrary issuance of the pre-authorization PO S machine has led to the cash out event. In addition, he believes that the incident was caused by the criminals using the pre-authorization rules of the UnionPay PO S machine, and UnionPay also has certain responsibilities.
It is reported that after the incident, the issuing bank has noticed the risk of such cashing and has urgently closed the credit card "overrun" function. A state-owned bank credit card center has recently revoked the policy of “pre-authorization quota exceeding 15%â€, that is, pre-authorization transactions can only be carried out in strict accordance with the remaining amount in the card.
In the interview, UnionPay said that pre-authorization is the basic function of credit card, and generally it is the commitment of the card issuer to make future payment to the merchant if the amount of consumption is not fixed. Pre-authorization has been widely used in hotels, hotels and other industries since the birth of credit cards. Pre-authorization transactions are commonly used in the international bank card market.
For banks, third-party payment companies do not recognize it. "Mainly, in order to expand the scale of credit cards, banks did not carefully review the applicant's information on the issuance of credit cards." The above-mentioned Shanghai third-party payment companies disclosed to Southern Reporters. In fact, there were not many fake cards and black cards in this incident. A person familiar with the matter disclosed to the Southern Reporter that after the relevant cases were gradually discovered, UnionPay called the third-party payment company and the bank to talk together, but no one gave in to the responsibility issue. "Now everyone is fighting fire first, and the next step is to recognize the problem."
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Pre-authorization
The pre-authorization business refers to the business that the special merchant obtains from the card issuer a payment promise within a certain percentage of the pre-authorized amount within 30 days, and accepts the card issuer after the cardholder obtains the goods or accepts the service. Generally speaking, it is to freeze the business of the actual consumption amount after freezing part of the funds in the bank card for use as a deposit. In general, the frozen amount cannot exceed 115% of the pre-authorized transaction amount.
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