An important new regulation affecting the payment industry was officially implemented on May 15. The new regulation originates from the revised provisions on the filing and prosecution standards of criminal cases under the jurisdiction of public security organs (II) (hereinafter referred to as the provisions) jointly issued by the Supreme People's Procuratorate and the Ministry of public security. It modifies and adjusts the filing and prosecution standards of 78 kinds of economic crime cases under the jurisdiction of public security organs, and has several provisions related to payment business, POS cash out, credit card, etc.
Lock millions
The reporter of Beijing business daily noted that the "Regulations" listed in detail a number of illegal situations such as forged credit cards, malicious overdraft, illegal payment and settlement and POS cash out.
For example, the circumstances that hinder the management of credit cards include: knowing that it is a forged credit card and holding and transporting it; Illegally holding more than five credit cards of others; Using false ID card to swindle for credit card; Sell, buy or provide others with forged credit cards or credit cards obtained by cheating with false identity certificates.
Credit card fraud activities include: using forged credit cards, swindled credit cards with false identity certificates, invalid credit cards or falsely using others' credit cards to commit fraud, with an amount of more than 5000 yuan; Malicious overdraft with an amount of more than 50000 yuan.
It is worth mentioning that the new regulations also disclose the specific circumstances of POS cash out, that is, using POS and other methods to directly pay cash to Credit Card cardholders in the form of fictitious transactions, false prices, cash returns, etc., with an amount of more than 1 million yuan, or causing more than 200000 yuan of funds of financial institutions to be overdue, or causing more than 100000 yuan of economic losses to financial institutions, which is in violation of national regulations, Those who engage in illegal business activities and disturb the market order shall be filed for prosecution.
In addition to credit card management and POS cash out, the regulations also list a number of illegal business situations. Among them, those who illegally engage in securities, futures and insurance business, or illegally engage in fund payment and settlement business, such as illegally engaging in fund payment and settlement business, with an amount of more than 5 million yuan or an illegal income of more than 100000 yuan, will also be prosecuted.
The reporter of Beijing business daily noted that in order to standardize the business management of credit cards and receipts, crack down on illegal and criminal activities such as cross-border gambling and telecom fraud, cut off the capital chain of the black and gray industry, and carry out heavy supervision in recent years. With regard to the revision of the "provisions", the Supreme People's Procuratorate and the Ministry of public security pointed out that in order to meet the needs of combating economic crime cases in the new era, public security organs at all levels should file cases for investigation in accordance with the "provisions", and procuratorial organs at all levels should examine, approve, investigate and prosecute in accordance with the "provisions".
"This is actually an update of the decree of the same name issued in 2010. In contrast, it keeps pace with the times and is in line with the changes expected in the development of the industry in the past decade. For the payment industry, the definition standard of illegal fund payment and settlement business and the amount of credit card fraud cases have been adjusted accordingly." Wang Pengbo, a senior financial analyst at Broadcom consulting, said.
In fact, the revision of the regulations is also of great significance to the payment industry. Su Xiaorui, senior analyst of Analysys analysis financial industry, said that the revised provisions keep pace with the times in terms of specific amount and corresponding sentencing standards, providing a clearer reference basis for the judgment of criminal cases in the subsequent payment industry.
Continuous violations
Despite regulatory bans, it can not be ignored that there are still violators retrograde.
In recent days, many consumers reported to the reporter of Beijing Business Daily that they had frequently received calls from POS machine salesmen of agents of some payment companies. The other party mainly promoted POS machines on the grounds of handling credit cards. Although they claimed to handle them for free, after binding bank cards in practice, they deducted hundreds of yuan of deposit fees in advance and did not return them afterwards.
In order to verify what consumers said, the reporter of Beijing business daily conducted a personal survey on the POS exhibition industry of many payment companies and found that the market was full of chaos.
For example, in the promotion link, the reporter of Beijing Business Daily recently received a POS machine promotion email from a payment company, saying that the consumption repayment record of the reporter's account in 2022 exceeded the standard, and the platform automatically sent a collection gift POS machine. However, it should be noted that the email was specially marked "only for credit card users".
In the process of handling, the reporter of Beijing business daily successfully contacted a number of payment company agents on the grounds of handling POS cash out. Among them, during the registration process, the reporter found that although some companies need real name authentication and fill in store information when handling POS machines, in the actual operation process, even if they fill in fictitious merchant information, they can also pass, and the audit link is in vain; In order to promote POS machines, the agents of payment companies do not even need to audit merchants, sign contracts, business licenses and other materials. When the reporter asked whether cash out through POS machines involves illegal acts, the other party even said that all these are compliance businesses.
After handling the POS machine, some agents introduced a series of "card maintenance tips" to the reporter of Beijing business daily in order to avoid capital monitoring, including "you can't swipe the card more than 30% of the total amount every time, you can't always swipe the whole number, you can't always swipe the tail number of the card 0, 6, 8 and 9", "swipe the card at an interval of more than 4 hours each time", etc.
Su Xiaorui told the Beijing Business Daily that at present, the market is in chaos, and there are even online POS machines. For example, the behavior of publicity through social media software and video platforms still exists, and there are still omissions in the management of merchants by some third-party payment institutions, resulting in opportunities for POS cash out and other behaviors.
"Indeed, there are many institutions that publicize marketing under the banner of supporting cash out in order to sell POS machines in offline services." Wang Pengbo also pointed out that from the perspective of the payment industry, these problems continue despite repeated prohibitions, and the main reason is to obtain more profits. The industry competition is fierce, and the profit points are continuously diluted, so there will be many illegal operations outside the policy.
There is an urgent need for multi-party linkage
In fact, in recent years, many illegal and criminal activities such as cross-border gambling, cash out and telecom fraud are also directly or indirectly related to the non-standard POS business.
However, it is worth mentioning that the police have been cracking down on the illegal and criminal acts of POS machines.
On May 13, some media reported that a case known as the largest illegal operation of cross-border gambling POS machines in Southwest China had recently come to an end, of which three people had been sentenced, and the highest one was sentenced to six years' imprisonment. It is understood that after knowing the methods that POS machines can be used abroad, some criminals arranged employees to use PS to forge merchant business license according to the identity information provided by others, and registered with payment companies in the name of merchants to apply for POS machines. After applying for POS machines, install relevant corresponding procedures and detect them (mainly to avoid real positioning information), and then send these machines for illegal trading of foreign exchange in Macao and providing cash out services for gamblers.
For the follow-up treatment of chaos such as POS cash out, Wang Pengbo believes that, first, the supervision has issued a series of laws and regulations to regulate the corresponding problems, such as the recently issued regulations on the administration of payment acceptance terminals, which are conducive to the root cause of such problems. In addition, Payment institutions should form a linkage mechanism with banks to strengthen the awareness of risk prevention, such as strictly reviewing the conditions and amount of applicants and strengthening the liability of merchants for breach of contract; In addition, strengthen agent management.