Third-party payment burst growth is worrying

Recently, I interviewed a 4s shop in Weifang and found that although there are many POS machines on the company's checkout counter, the cashier will come up with a pos machine belonging to “a certain treasure” company for customers to use, even if there is a queue. Customers can only wait.

According to the company's POS purchase order, the reporter easily found the problem. According to the merchant classification table published by UnionPay, the 4s store is obviously attributable to the real estate car category, the card handling fee is 1.25%, and the capping is 80 yuan; however, the business number classification displayed on the purchase order issued by the company is For motor vehicle supply and spare parts, the fee is 0.78% according to the regulations, and the capping is only 40 yuan, nearly double the difference between before and after.

According to industry insiders, this is an obvious set of code behavior. According to the UnionPay regulations, each merchant has a four-digit merchant category code (MCC code), which is set by the acquiring institution for the special merchants to indicate the UnionPay card trading environment, the merchant's main business and industry attributes. Different MCC codes represent different industries, and the card processing fee rate is also different.

However, it is understood that this “package behavior”, which seems to save money for merchants, represents an unspeakable worry behind the explosive growth of the third-party payment industry.

Third-party payment industry blowout

Third-party payment is divided into three types: prepaid card, online payment and bank card receipt. In May 2011, the central bank issued the license for the first time. 297 companies have obtained licenses, 34 bank card acquiring licenses have been issued, 27 national licenses, and 7 single provinces and cities. The market is also exploding at the same time. In early January 2014, China UnionPay announced that the number of merchants, POS (card readers) and ATMs (detail machines) that can use UnionPay cards nationwide increased by 58%, 49% and 24% respectively during the year. Among them, the domestic networked POS terminal exceeded 10 million units for the first time. The bank card merchants' acquiring market also entered the period of maritime disputes because of the high quality of resources and low service maintenance costs.

Industry rules: 721

As a result of the huge market potential of this industry, as early as 2001, the National Development and Reform Commission and the central bank began to formulate rules. At the end of 2003, the "China UnionPay Institutions Bank Card Interbank Trading Income Distribution Method" (commonly known as Circular No. 126) was published, and it is still the industry's "fruit split" standard. The original text says, "For general types of merchants, the issuing bank is fixed. The income is 0.7% of the transaction amount, and the standard of UnionPay network service fee is 0.1% of the transaction amount.” That is to say, the general industry merchants need to pay 1% of the handling fee per transaction, and the issuing bank, the acquiring institution and the UnionPay are 7: 2:1, this standard ratio splits the fee.

If the acquiring institution wants to develop, it will either make a big profit to the merchants, compete for the handling fee, or can only drill other holes. Although the space for profit is small, because of the large market base, the third-party payment market has attracted the attention and layout of many companies.

Although UnionPay is very clear about the industry standards, and it is strictly forbidden to apply MCC codes, banks often impose huge fines for the discovery of such incidents. However, because of the above situation, there is a large profit margin, and the number of POS machines and related institutions are too large, which provides space for some small payment companies to grow, and the above behaviors are still banned.

The principle of benefit distribution of No. 126 laid the foundation for the development of this industry, but some agencies of payment companies signed agreements with merchants privately, bypassing the relevant rules formulated by UnionPay. It seems that both parties have gained benefits, but for a long time, it is inevitable It has dealt a fatal blow to some formal acquiring companies and the regulated operations of this industry.

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