China Regulates Market Access for Bankcard Clearing Institutions.docVIP

China Regulates Market Access for Bankcard Clearing Institutions 　　On April， 22nd， Chinese government made a decision that from June 1st， 2015， qualified institutions can apply for “Business license of bankcard clearing” to do bankcard clearing in China. It is noted that China UnionPay also need to apply for the license. An official from China’s central bank said， China UnionPay should follow related rules and regulations to apply for a business license of bankcard clearing. 　　In order to promote the implementation， China’s central bank would work with CBRC （China Banking Regulatory Commission） to make ‘Regulations on bankcard clearing institutions’， and carry out the review approval of these applications. 　　 Long Journey for the Opening of Bankcard Clearing Market 　　China UnionPay Co.， ltd， established in 2002， is China’s first and only bankcard clearing institution. For decades， China UnionPay has built a standard for bankcard clearing， business regulations and trade system. In China， UnionPay is the only choice for payment transaction. According to relevant provi- sions， POS provider should be charged for each card-stamping（70% paid to card-issuing bank； 20% paid to bank provided POS or UnionPay’s subsidiary ―‘ChinaUMS’； 10% paid to UnionPay.） Because of this， UnionPay has long been blamed for the monopoly. 　　In the 1990s， international card organization entered Chinese market. In 1988， MasterCard established Beijing office， and five years later， VISA set up its office in China， too. For many years， China’s bankcard clearing market has still been closed， international bankcard institutions can only share part of Chinese overseas consumption market. 　　In June， 2010， VISA turned against China UnionPay， blocked off part of China UnionPay’s overseas channel， and finally WTO made a verdict： China UnionPay has no monopoly behavior in Chinese market， but it must open payment clearing market in China as soon as possible. At this point， China accelerated its o