UnionPay pos direct connection and indirect connection (reproduced)

1. Definition of direct connection mode and indirect connection mode The
　　so-called direct connection mode: refers to the direct connection between the POS terminal and the UnionPay system. When POS consumption occurs, the transaction information is first sent to the UnionPay host system, and the UnionPay system automatically judges and sends it directly. The relevant card-issuing bank, and the information is then returned along the way. Generally speaking, the initial investment of this model is relatively large, and commercial banks are required to cooperate more actively.
Interconnected POS: Refers to the connection of the POS terminal to the host system of the commercial bank that provides the machine. When an inter-bank consumer transaction occurs, the consumer transaction information is first sent to the host system of the commercial bank that provides the machine, and it is judged to be inter-bank information and then sent to the UnionPay host system. It will be sorted and judged by the UnionPay system and then sent to the relevant card-issuing bank, and then the information will be returned along the way. Generally speaking, the initial investment of this model is less, and it is easy to obtain the cooperation of commercial banks at the beginning, which can realize the purpose of network integration relatively quickly.
2. Analysis of the advantages and disadvantages of the direct connection mode and the indirect connection mode
2.1 After considering the direct connection method from the perspective of cost and benefit
　　, UnionPay charges 10% of the inter-bank transfer fee, and the acquirer charges 20% of the acquiring interest. , and only get 70% of the bank's bank card acquiring efficiency. For local small and medium commercial banks, direct connection is preferred. Due to the small investment in the acquiring market and the small number of merchants, the income from the distribution of the acquiring business is more than the cost of equipment and personnel. and merchant expansion fees, and obtain the allocation ratio of card-issuing bank fees stipulated by UnionPay in the inter-bank transaction of bank cards, so as to share the resources of large banks at a minimal cost.
　　In the indirect mode, the POS merchant is acquired by the commercial bank that provides the equipment. The acquiring bank is responsible for the deployment and maintenance of the POS equipment. At the same time, the acquiring bank has all the procedures for POS consumption on this equipment except for the bank card of the bank. In addition to the fee income, you can also get 20% of the inter-bank transaction fee income. In addition to the fee income, the acquiring bank can also obtain all the merchant's consumption funds before the merchant's funds are transferred.
2.2 From the perspective of business development
　　Merchant POS channel is not only the basic channel for banks to carry out consumer credit and cross-selling, but also the link for banks to carry out fund settlement and comprehensive financial services. Merchants are an extension of banking services, and each issuer's credit card is attached with various special services, such as merchant discounts, credit card points, installment payment, cross-marketing and other value-added services. The payment innovation of these bank cards can be realized on the commercial bank's own indirect POS machines, but the direct POS machines do not have these functions.
2.3 Considering from the perspective of risk control
　　For the acquiring bank, the indirect POS model is that the acquiring bank is responsible for signing the contract with the merchant, and an agreement is reached between the bank, the merchant and the acquiring institution, and each party bears the relevant obligations and responsibilities. The characteristic of POS is that the information from the merchant must pass the review link of the acquiring bank, and then transfer it to UnionPay, which in turn transfers it to the issuing bank. In this mode, the acquiring bank can detect the transaction of the merchant.
　　The direct connection method does not have the link of the acquiring bank, which is equivalent to the merchant's transaction going directly to UnionPay, and then from UnionPay to the card issuing bank. The use of the direct-connected POS acquiring method may involve risks for commercial banks. If the acquiring institution does not check the authenticity of the merchant information, all losses in case of illegal cashing will be borne by the card issuing bank.
2.4 Consideration from the perspective of fairness and efficiency
　　Under the indirect mode, the inter-bank information must be processed by a commercial bank first, and then transferred to UnionPay. On the one hand, there are many links and low efficiency. On the other hand, UnionPay cannot control the quality of front-end data processing. For the sake of their own interests, some banks often process their own bank's information first, and then process other banks' information when processing consumer information. This is especially true when the bank's transaction processing is very busy. In addition, banks often do not actively eliminate technical problems such as inability to accept bank cards from other banks when the POS terminal equipment placed by the bank is unable to accept bank cards from other banks, resulting in delay in the processing of bank card inter-bank information transactions, which makes it difficult to solve the problem of repeated placement of POS terminals. Let go of the problem.
　　In the direct connection mode, there are few links and high efficiency. Under this model, all commercial banks connected to the network, regardless of size, have equal status. In order to improve their competitiveness, commercial banks must strive to improve their own system processing capabilities and speed up their communication capabilities with UnionPay. This fair competition promotes the improvement of the service level of bank card business, and a bank's new business can be rapidly expanded to all banks, reducing the cost of bank business development and promotion.
2.5 Considering the development trend of the data set On the
　　one hand, the data collection of major commercial banks will be completed in the past one or two years, and then the transaction information of all terminals in the branch will be directly sent to the head office data center. For example, BOC currently adopts the mode of direct connection with the head office and inter-bank transaction head office clearing through the UnionPay head office, realizing the centralized acquiring mode of the head office, centralized clearing and centralized back-office support, avoiding the repeated investment and waste of manpower and material resources. The intermediate links are reduced, and the transaction and error processing speed is generally improved.