Payment Law Advisor Legal Commentary and Resources for the Payment Industry

Vincent Wang

Posts by Vincent Wang

China Report: Uniform Interchange Rates Now Apply; Differentiated Interchange Fees Based On Different Types of Merchants No Longer Exist

Posted in Global Insights
I. Highlights of the New Regulation On September 6, 2016, a new Chinese regulation regarding fees for the use of bankcards (“Interchange”) in the PRC became effective. For these purposes, Interchange is comprised of fees charged by the card issuer, fees charged by the payment network and fees charged by the acquirer. The new regulation is called the… Read the rest

Chinese Government’s Announcement to Open Bank Cards Network Market

Posted in Global Insights
On Oct. 29, 2014, in a routine working session, the China State Council determined that the Chinese government would “open” bank card acquisition and settlement businesses in China. Qualified Chinese domestic and foreign investors may apply to establish bank card acquisition and settlement businesses in China and to process Chinese domestic bank… Read the rest

Online Payments in China: Recent Regulatory Actions

Posted in Deals and Technology, Global Insights
On March 13, 2014, People’s Bank of China (“PBC”) issued an opinion letter halting immediately the use of QR codes for payments using mobile phones (as distinguished from using QR codes at POS terminals) well as the use of virtual credit cards (“Opinion Letter”). The Opinion Letter expressed concern that QR-based payments over mobile phones … Read the rest

A Q&A on Recent Developments Involving China Union Pay

Posted in Global Insights
Recently, DWT payments team members Vincent Wang and Norm Page sat down in our Shanghai office* to discuss recent developments involving China Union Pay (CUP). Vincent Wang has extensive experience helping U.S. companies and other clients pursue, develop and maintain operations in China, and he advises clients in a wide range of areas, including paymen… Read the rest

Key Trends in Global Payments

Posted in Regulatory and Compliance
DWT payments team members Andy Lorentz and Vincent Wang recently spoke at the Addleshaw Goddard International Financial Services Convention in London on September 27-28, 2013. Given the complexity of regulatory regimes across the world, it has become increasingly difficult for individual firms to provide a comprehensive global legal solution when i… Read the rest

Legal Overview of China’s Regulation on Payment Service by Non-Financial Institutions

Posted in Global Insights, Regulatory and Compliance
At ACI’s 2nd Advanced Forum on International & Cross-Border Payments in San Francisco, DWT partner Vincent Wang gave a presentation entitled “Legal Overview of China’s Regulation on Payment Service by Non-Financial Institutions.” The presentation focused on the following topics: Regulation of Payment Service: In Genera… Read the rest

Developments in Chinese Mobile and E-Payments

Posted in Global Insights
The year end is seeing many potentially significant developments in mobile and electronic payments in China. Several of these developments are noted below. Forthcoming Standards: Lu Shuchun, deputy chief of Science and Technology Division of the People’s Bank of China (PBOC), has announced that mobile payment standards would be announced soon. PBO… Read the rest

Reduced Interchange Fees in China Effective February 25, 2013

Posted in Global Insights
The ten year-old regime governing merchant fees in China is about to change – and the fees are, in general, about to be reduced by one-fourth or more. This change will take effect February 25, 2013, pursuant to the Standards on Bank Card Merchant Fees (the “Standards”), recently approved by the State Council. The Chinese interchange regime is less not… Read the rest

Regulation of Prepaid Cards offered by Non-Financial Institutions in China

Posted in Global Insights
On November 1, 2012, the Chinese government issued new payment service measures (“Measures”) governing payment services offered by “Non-Financial Institutions,” i.e., non-banks (click here for the Chinese text and click here for an English translation).  Anyone engaging in (i) payments through networks, (ii) the issuance and acceptance… Read the rest

WTO Panel Rules on Electronic Payment Services in China: What to Expect

Posted in Global Insights
On July 16, 2012, the World Trade Organization (the “WTO”) issued its panel report regarding certain measures affecting China electronic payment services (“EPS”). The report concludes that certain restrictions on the provision of such services violate WTO trade rules, but the report is not a wholesale victory for the United States and its effe… Read the rest

Citigroup Is First Global Bank Permitted to Issue Credit Cards in China

Posted in Global Insights
On 6 February 2012, Citigroup announced that it had received official approval from the China Banking Regulatory Commission (CBRC) to launch a proprietary credit card business in China. The business will cover both retail and commercial cards, and is likely to be launched later this year. On 19 March, Citigroup sold its stake in Shanghai Pudong Developme… Read the rest

Visa and China Union Pay: An Update on Their Struggle

Posted in Global Insights
Once upon a time, China Union Pay (“CUP”) was a department of the People’s Bank of China and needed help in establishing and maintaining a bank-card payment network in China. Visa provided CUP with this assistance, and CUP, together with various Chinese banks, became members of Visa. The first draft of CUP’s rules bore an uncanny resemblance to Vis… Read the rest

Payments in China: A Primer

Posted in Global Insights
Set forth below is a brief overview of payments in China. Later posts will provide updates as well as more detailed analysis of selected issues, in particular with respect to payment processing. Foreign Exchange Controls and Cross-Border Payments The Renminbi (RMB) is legal tender only within China’s domestic market. Foreign currencies may not be use… Read the rest

PBOC Grace Period for Third-Party Payment Processor Licenses Set to Expire

Posted in Global Insights
With the arrival of September 2011, the grace period for third-party payment processor licenses will soon end. The People’s Bank of China (the “PBOC”), the central bank of China, has issued 40 licenses in two rounds. Many existing third-party payment processors are still waiting for the next round of license release. However, the market expectati… Read the rest