1. Product definition of merchant acquiring service with RMB card

The RMB card merchant acquiring service is a kind of RMB card transaction and funds settlement service, with handling charges from the contract merchants according to the proportion and amount agreed upon.

2. Product functions of RMB card merchant acquiring service

(1) Basic serving functions

1) Transaction processing

The RMB card merchant acquiring service shall provide the acceptance services of all kinds of card, including debit card, quasi-credit card and credit card issued by domestic banks. POS machine can accept magnetic card and chip card (EMV). Our bank shall provide the merchants with various kinds of POS machine terminal, including wired integrated POS and wired split POS, with fixed line telecommunications and IP communications; providing mobile POS based on wireless network; proving a dozen functions such as consumption, consumption cancel, non-magnetic and unencrypted consumption, sales return, pre-authorization completion and pre-authorization cancelling .

2) Capital settlement and account checking services

To provide the contract merchant with timely funds settlement service, with the trading capital being settled to the merchant’s settlement account opened with our bank; providing transaction and settlement services such as inquiry, account checking, payment demanding and refunding. Reversing and adjusting timely the fault accounts found and notify the clients and providing the service to download statement of account online.

3) Training service on receiving card and risk prevention

Before the business starts up, our bank shall provided the clients with training on receiving card operation and receiving card risk prevention; after the business starts up, the training on new function application shall be carried out according to the business innovation status.

4) Following-up maintenance and risk management

Our bank shall regularly provide timely and reliable maintenance service, including machine repair and consumables supply. Our bank shall carry out 24-hours supervision on the merchant transaction. If suspicious transaction is found, the supervision manager shall control the transaction immediately, to avoid losses of funds by the merchants.

(2)  Function of value-added service

BMP service: to connect the merchant’s MIS system with the bank card business system, that is, to mix the financial POS function into the merchant’s receiving terminal to provide bank card acquiring service in replace of the POS machine. BMP service is divided into hotel BMP and market BMP services.

(3) Product advantages

1) To facilitate customers to purchase products, to stimulate large quantity purchase and impulsive purchase to increase turnover.

2) To reduce the links to count cash and deposit in the bank, to reduce the internal workload to speed up the turnover speed of capital.

3) To avoid the risk to receive counterfeit money.

4) To enhance transaction handling speed, to facilitate client’s settlement, to improve the service quality for merchants.

5)  After credit card consumption, the funds is deposited automatically into the account of merchants, to speed up the efficiency of the funds of merchants.

6)  To attract more customers, especially the consuming group holding credit cards, to purchase the products of the merchants.

7) To promote the enterprise’s image and to set up superiority in competition.

3. The development object of RMB card merchant acquiring service

(1) Admittance requirements

1) The merchants must be holders of lawful business license.

2) The merchants must have steady operating sites of certain scale.

3) The merchants must have lawful tax registration certificates and tax certificates.

4) With sound reputations and no poor records of operation.

5) With large annual turnover and certain financial strength.

6) With professional operating capacity.

The acquirer bank shall manage the singed merchants in accordance with real-name system, and the merchants shall fill in the name when they registered with the industrial and commercial administrative department.

(2) Cautious development

1) Small size air ticket outlets.

2) Small size direct distributors.

3) Small size science and technology, commerce, trade merchants.

4) Various entertainment venues such as nightclub, Karaoke, lounge.

5) Commercial tenants providing intermediary and information services.

(3) Banning from development

1) Operational organizations illegally established.

2) Gambling and lottery, erotic services, sale of illicit drugs, narcotics, pornographic publications, ammunition forbidden by the state laws and other commercial tenants conflicting with the laws and regulations of our country;

3) The commercial tenants who are suspected to get out of line to cash out, to engage in illegal money laundering or to conceal actual business situations, or commercial tenants using indiscriminately the classification codes of other industries;

4) The commercial tenants or managers (or legal persons) of commercial tenants that are listed into the bad information system or in the list banning from development by China Unionpay;

5) The commercial tenants whose registration places and sites for business operation are not in Jilin Province.

4. Commercial tenant classification and charging standard for the acquirer merchant of RMB card