Original title: Strengthening the management of payment terminals
Scanning codes, POS machines, and swiping faces have become financial tools in the daily life of the general public, but there are also many chaos extended from them. Targeting these acceptance terminals, the central bank will issue new regulations. On October 13, a notice on strengthening the management of payment acceptance terminals and related businesses attracted market attention. The notice will be implemented from March 1, 2022. From the content point of view, the bank card acceptance terminal and barcode payment acceptance terminal , Barcodes for personal collections, management of special merchants, and even cooperating manufacturers have made a series of regulations to form a regulatory shock.
Whose terminal is responsible
Establish serial number and acquirer code
Since the publication of the draft for comments in June 2020, the payment acceptance terminal supervision boots have officially landed.
According to the “Notice”, it has made a series of requirements on acquiring institutions and clearing institutions around bank card acceptance terminals and barcode payment acceptance terminals.
At the bank card acceptance terminal level, the “Notice” requires the acquirer to establish the terminal serial number and acquirer code, special merchant code, special merchant unified social credit code, special merchant acquirer settlement account, bank card acceptance terminal deployment location, etc. Correspondence of the five elements, and ensure the consistency and immutability of the correspondence in the entire payment process.
The clearing agency should establish an evaluation and management mechanism for cooperative manufacturers. For cooperative manufacturers that fail to produce bank card acceptance terminals as required, submit bank card acceptance terminal serial number registration information, or participate in illegal activities, the clearing agency shall require them to rectify within a time limit, lower the evaluation level, or stop cooperation, etc. measure.
Adhering to “Whose terminal is in charge” and “Whose network is in charge”, it can be seen that the “Notice” has consolidated the main responsibility of the acquiring institution regarding the acquiring business and the clearing institution’s responsibility for maintaining the order of the network. .
It should be noted that the acquirer should adopt a bank card acceptance terminal with password recognition technology to ensure that the transaction initiated by the terminal can be accurately traced; the clearing organization should organize member institutions to comprehensively sort out and evaluate the terminal connected to the network. upgrade. Once monitoring finds that the relevant elements are inconsistent with the original binding relationship, the clearing institution and acquiring institution shall take risk verification and handling measures to effectively prevent risks such as “relocation” and “code set”.
Regarding the “Notice”, Analysys senior analyst Su Xiaorui commented that the “Notice” conducts penetrating management of illegal or illegal payment transactions through concealed methods such as “relocation” and “code set”. , Cut in from the corresponding relationship between the terminal serial number and the five elements, implement the full life cycle management of the payment business, and prevent the risk of real transaction information being hidden. In her view, the inclusion of manufacturers in the “Notice” will be able to prevent technical loopholes that may be exploited by criminals at the source.
At present, there are a large number of participants in the payment market, which can easily lead to unclear powers and responsibilities behind the scenes and the chaos that cannot be improved. In Su Xiaorui’s view, the “Notice” puts forward requirements such as “Whose terminal is in charge” and “Whose network is in charge”. The respective responsibilities of acquiring institutions and clearing institutions are consolidated, which is conducive to the organization’s clear business objectives. And compliance requirements, and then play a role in improving payment chaos.
Personal static receipt barcode
Disabled for remote non-face-to-face collection
In addition to strengthening the management of bank card acceptance terminals, the “Notice” also puts a “tight band” on the barcode for collection.
One thing that needs to be mentioned is that for individuals with obvious characteristics of business activities, the barcode payment collection service agency should also provide them with special merchants’ payment collection barcodes, and refer to the relevant management regulations of special merchants. It provides collection services related to business activities.
In addition, barcode payment collection service agencies should also take effective measures to prohibit personal static collection barcodes from being used for remote non-face-to-face collection. If it is really necessary to conduct remote non-face-to-face collections, the institution shall implement whitelist management of the corresponding payees, and carefully determine the whitelist access conditions and scale, the validity period, the number of uses, and the transaction limit of the personal static collection bar code.
“This time the “Notice” stipulates to make up for the bar code payment channels that may be used for money laundering. In particular, the management of personal collection codes and the requirement that personal static collection bar codes are prohibited from being used for remote non-face-to-face collection. Effectively avoid the personal collection code channel being used by the trading platform.” commented Wang Pengbo, a senior analyst in Broadcom’s financial industry.
Regarding special merchants, a reporter from Beijing Commercial Daily noted that the “Notice” also made further requirements. Acquirers should complete the verification of the identity information of all designated merchants in stock within one year from the date of publication of the “Notice”, and form a work report for future reference; The clearing institution should monitor the changes in the network access information of the special merchant. If it is found that the same special merchant frequently changes the core network information, the information reported by different acquirers is inconsistent, the acquirer has repeatedly cleared and returned it, or it has business addresses with other special merchants. In suspicious situations such as the same as the contact information, the acquirer should be required to conduct risk investigation.
The identities of the special merchants are unclear. These are actually the “hardest hit areas” in the previous payment of fines. Su Xiaorui told the Beijing Commercial Daily that the “Notice” supervises the three angles of information verification, information platform, and change management, which helps prevent money laundering. , Cross-border gambling, telecom fraud and other risks.
Disconnect offline payment channels
Improve risk management
The so-called payment acceptance terminal, in simple terms, is mainly a series of collective terms for offline payment tools, which are mainly divided into bank card acceptance terminals, barcode payment acceptance terminals and innovative payment acceptance terminals, such as familiar POS machines and face payment Terminals, etc. are included.
The importance of accepting terminals as a basic tool for linking merchants and users to land can be imagined. Wang Pengbo told reporters from Beijing Business Daily that due to the long-standing industry problems caused by payment acceptance terminals, such as cash out, code hopping, etc., unauthorized changes to terminal transaction routing, merchant codes, transaction addresses and other methods in the past can easily become money laundering channels. The central bank made further regulations this time.
“Regulating the acceptance terminal is tantamount to cutting off the root cause of the further utilization of offline payment channels.” Wang Pengbo said.
In addition, the person in charge of the relevant department of the central bank also pointed out that at present, some market entities are constantly renovating the means of altering transactions, which makes it difficult to restore the real consumption scenes of transaction information, which not only infringes on the legitimate rights and interests of consumers, triggers complaints and disputes, but also provides transfers for criminals. Illegal and criminal funds bring opportunities. There are even some criminals who use barcodes to transfer gambling funds to provide payment channels for cross-border gambling activities.
The aforementioned person in charge of the relevant department of the central bank stated that in order to effectively improve the level of payment acceptance terminals and related business risk management, and effectively cut off the “funding chain” of cross-border gambling and other crimes, the “Notice” further regulates payment acceptance terminals and special merchants from multiple entities and multiple dimensions. Management helps prevent criminals from stealing consumer personal information and even account funds by modifying payment acceptance terminals and applying for false merchants. In addition, it also helps prevent outsourcing institutions from embezzling funds and large merchants from the source. Risks help to better protect the financial security and service experience of individual operators and small and micro merchants.Beijing Commercial Daily reporter Liu Sihong
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