Bitcoin news People’s Bank of China is apparently updating their rules regarding QR code payments. 500 yuan limit for all sorts of tokens.
Recently, the People’s Bank of China (PBC) issued the Notice of the People’s Bank of China on Printing and Distributing the Code of Practice for Barcode Payments (YF  No.296) and issued the “Technical Specifications for Bar Code Payment Security (Trial)” and the “Bar Code Payment Processing Terminal Technical Specification (Provisional) “(Issued by the Bank  No. 242) shall come into force on April 1, 2018. Recently, the relevant person in charge of the People’s Bank answered questions from reporters on the above issues concerning notification and regulation.
Q: What is the background of notification and regulation?
A: Barcode payment has the advantages of convenient payment and low application threshold, which can play an active role in promoting inclusive finance and optimizing the construction of non-cash payment environment in China. As for the regulation of innovation payment, the PBC consistently adheres to the principle of “equal emphasis on encouraging innovation and preventing risks”. Since the beginning of this century, various market players at home and abroad have begun to try to apply barcode technology in the field of mobile payment in order to improve payment convenience and user experience. To encourage business innovation in market institutions, 2011
In 2009, PBC agreed that some non-bank payment agencies (hereinafter referred to as payment agencies) piloted barcode payment businesses within limited scopes, prudently placed bar codes in addition to bank card payments, and put forth strict risk management requirements. In 2014, under the background of not establishing effective security measures, uniform business rules and the protection of consumers’ rights and interests, some payment agencies widely promoted the barcode payment business by means of continuous subsidies. The People’s Bank of China took a moratorium on its offline barcode payment business Regulatory measures. With the widespread application of technologies such as Tokenization in mobile payment in recent years, objectively, the bar code security standard has been raised. However, due to the lack of uniform business standards and technical standards, there are still potential risks in the bar code generation mechanism and transmission process, as well as the risky cases of payment security. Market agencies also have unfair competition in the process of business promotion.
In order to implement the spirit of the 19th National Congress of the CPC and the Fifth National Financial Work Conference, encourage and standardize financial innovation and promote the healthy and sustainable development of bar code payment, the PBC instructs the China Payment and Settlement Association to organize member units and experts and scholars to carry out research and demonstration, study and formulate Bar code payment business norms and technical specifications, and through written comments, held a special meeting and other forms to fully listen to all opinions and suggestions to improve and perfect the regulatory and market to achieve smooth communication and effective interaction, reached a high degree of consensus.
Q: What are the major problems in the development of barcode payment business?
A: First, bar code payment to reduce barriers to entry business at the same time, exacerbating the chaos in the receiving market. Because the cost of barcode payment equipment is lower than that of a traditional bankcard receiving terminal, the barcode payment service can also be achieved by posting static barcodes to meet the demand of accepting non-cash payment by small and micro-merchants and supplementing bank card receipts to enhance overall social payment Service Level. However, some market agencies use barcodes to send messages remotely and are not restricted by professional acceptance terminals. They have not complied with their obligations of “knowing your customers” in the process of business expansion and violated the rules of “one license”, thereby aggravating Cash, cash, outsourcing management is not in place, such as receipt of chaos, there are all kinds of security risks, the market for sustainable development caused greater harm.
he second is bar code payment in promoting the universal development of mobile payments at the same time, appear to disturb the phenomenon of fair market competition. In recent years, the market share of barcode payment in the small and convenient payment field has continued to increase, promoting the rapid development of mobile payment and the wide coverage of inclusive finance. However, when carrying out barcode payment business, some market institutions adopt unjust competition means such as dumping and cross-subsidization in pricing and marketing strategies, abuse the market dominant position of the institution and affiliated enterprises, eliminate and restrict competition in payment services, and lead to payment Disorderly development of industries and unfair competition disrupt market order.
Third, bar code payment With the open Internet and non-professional equipment for transaction processing, bringing a certain degree of technical risk. Including: visual risk, bar code in the open Internet environment to display graphically, criminals can through the screen shots, photos and other means to steal payment vouchers, theft of funds in the voucher period; easy to carry malicious code risk, bar code not only Store payment elements, can also carry illegal links or program code, criminals can link Trojans, phishing websites into bar codes to induce customers to scan and steal payment of sensitive information; one-way interactive risk of information, bar code payment can only achieve the initiator or The one-way information exchange of the receiver, the criminals can use the weakness to implement the “man-in-the-middle attack”, bypassing the identity authentication mechanism, resulting in loss of user funds; code scanning equipment, low security risk, bar code payment equipment requirements are low, Cameras, supermarkets, such as a simple cash register scanner does not have the encryption, anti-teardown and other security features of the device can recognize bar code, easily unlawful modification by criminals to use.
Q: What are the major business practices?
A: First, the emphasis on business qualification requirements. Clear payment agencies to provide customers with bar code-based payment services, you should obtain online payment business license; payment agencies for entity-specific merchants and network merchants to provide barcode payment and receipt services, and should obtain separate bank card acceptance business license and online payment Business license.
The second is to reiterate the liquidation management requirements. In view of the fact that some payment institutions and several banking financial institutions (hereinafter referred to as banks) or payment institutions directly extend their businesses to further expand the phenomenon of direct connection between payment institutions and banks, the Bank explicitly requires banks and payment institutions to carry out barcode payment businesses involving cross- When dealing, it shall be dealt with through the PBC inter-bank liquidation system or a liquidated institution with legal qualification.
Third, it is required to maintain fair competition in the market. Market institutions shall not discredit the commercial reputation of other market players in any form, shall not unfairly compete with others to damage the interests of other market players, crowd out competitors and undermine market order for fair competition.
Fourth, standard bar code generation and acceptance. Proposed transaction verification methods, transaction quota management, information management and security, static barcode application management, integrated application of payment tokenization and other measures to ensure the safety of bar code payment services.
Fifth, strengthen business management and risk management. From the special merchant qualification examination, acceptance of the agreement signed, business risk rating, business inspection, as well as transaction risk monitoring, customer safety education and other aspects of requirements, and strengthen business risk management.
Q: For barcode payment technology risks, what are the targeted requirements?
A: First, to strengthen bar code security. Take such measures as tokenization, expiration date control and barcode anti-counterfeit identification to enhance the security protection ability of barcode generation, storage, display, reading, analysis and use so as to effectively ensure the reliability and effectiveness of the barcode.
The second is to enhance the security barcode payment transactions. For different bar code generation methods, proposed encryption generation, regular updates, terminal unique identification binding and other targeted security measures. Banks, payment agencies and clearing agencies are required to use the technical measures matching transaction verification strength and transaction quota to improve the security of barcode payment transactions.
Third, strengthen the barcode payment transaction risk monitoring and early warning. Reasonable application of big data analysis, user behavior modeling and other means to establish barcode payment risk monitoring model and system, timely warning of abnormal transactions and additional risk control measures, timely disclosure of changes in customer funds for high-risk transactions.
Fourth, to strengthen the client software security management. The security of barcode payment client software is improved from trojan virus prevention, information encryption protection and trustworthiness of operating environment, etc. Client software is required to monitor and feedback the mobile phone payment environment security status to back-end system and serve as the basis of risk control strategy.Bitcoin news
Q: Do business requirements for bar code payment and safety management measures restrict payment innovation?
A: Payment services are financial services and are closely related to the operation of the society and the daily life of the people. They pay for the safety and lawful rights and interests of the people and the steady operation of the industry in relation to the healthy and sustainable development of the industry. Easy to use, good user experience is to pay for the vitality of innovation, but not simply the pursuit of bottomless innovation; stable and sustainable investment and operation is to pay for the long-term development of business protection, not for the pursuit of short-term market share, to take ” Burn money “” subsidies “and other inappropriate means of competition. The circular aims to guide relevant units in correctly handling the relationship between safety and development, paying a premium on innovations and maintaining fair competition in the market based on strict safety guidelines, promoting the healthy and sustainable development of the industry and providing safe and convenient financial services to the public . Rather than restricting the innovation and development of payment, the business norms and safety management measures proposed by the circular and norms can instead guide the payment of business innovation in the direction of safety norms, ensure the quality and efficiency of innovative businesses and ensure the sound and long-term development of the industry.