Originally Posted by
STS-134
But wouldn't Visa/Mastercard threaten to pull business from ALL of said banks/merchants if they get too many chargebacks? That's what you're really after: either make them pay higher fees, or get their ability to accept CCs pulled entirely, due to being sleazy.
I think the choice for Visa/MC is binary: all or nothing.
I've long held a theory that the Chinese Government creates very favourable conditions for DCC scamming:
- They own the local competing payment system - Unionpay - and majority stakes in most major Chinese banks too.
- They are really pushing to promote local brands - they're also doing this to the Big4 Global Accounting Firms (despite almost all the partners being HK/Mainland Chinese)
http://app1.hkicpa.org.hk/APLUS/1006...20-24_Big4.pdf
- They hate Visa quite a lot, given Visa's intransigence over PRC-issued dual-coded Visa/Unionpay outside China (Visa ruled that all Visa merchants outside China must use the Visa function of the dual-coded cards). Dunno what's their attitude towards MC.
The CBRC won't bat an eyelid towards systematic DCC rort and won't police its banks to follow Visa's/MC's rules. Most banks will be allowed to tell Visa/MC - I'm gonna scam all your customers. You can pull my entire participation in Visanet if you wish but if you don't then you play by my rules.
In any case I also see this as generally China's increasing unfriendliness towards foreigners - another being the post-1 July 2013 visa restrictions. As FIEs we're finding it harder to increase investment into China too.