Merchants use the coder to reduce the POS rate.
The operating costs of merchants are getting higher and higher. In order to use limited resources on the “bladeâ€, some acquiring companies in the market have suggested that merchants use the set-up machine to reduce the cost of the consumer's credit card consumption to the merchant.
Speaking of the set machine, we must explain a concept, mcc code
MCC code is also called the merchant category code? The mcc code is set by the acquiring institution for the signing merchants. It is used to indicate the trading environment of the UnionPay card, the main business scope of the merchant and the attribution of the industry. It is the main basis for judging the settlement fee standard for domestic cross-bank trading merchants. The mcc code is an industry standard for acquiring goods set by UnionPay.
Simply put, a POS machine corresponds to an mcc code, and this mcc code determines the transaction fee for the merchant to pay for the card. According to the current mCC code developed by UnionPay, the general classification is 0.38% of the handling fee, the general category is 0.78%, and the entertainment category is 1.25%. Four times from low to high!
Such a large price difference space, in part to save "cost" merchants and eager to deal with the industry rules, practitioners to achieve rate arbitrage by changing the business category. This is the root cause of the rampage of the set-up machine.
What is the danger of using a nesting machine?
The coder does save the user the cost of use, but the coder is illegal, and the risk behind it is not proportional to the benefits.
The coder is generally distributed to the market through a third-party payment company that manages irregularities. Third-party payment companies generally do not have sales teams themselves, mainly expanding their markets through agency companies. For transaction volume, third-party payment companies even encourage nesting. Therefore, the recent business card credits are not accounted for, and the company’s donations are all happening to third-party payment companies.
What is the impact on consumers?
For example, in the actual credit card consumption, it is obvious that the friend is invited to eat at the restaurant. After paying the credit card payment, the transaction document shows that the name of the merchant is XX Real Estate Company, XX Wholesale Company and the like, which are obviously inconsistent with the merchant type. And after checking the bill, it was found that the transaction with the score should have no points, which is the third-party POS package. This will also bring unnecessary troubles and disputes to the business.
The result of the pos machine set code may be:
1, small points have points, large amounts of no points
2, very few banks have points
3, large amount of billing name
4, by the wind control, derating, sealing
Xiao Bian reminds you that some costs are not saved, and the practice of walking the tightrope, of course, saves the temporary benefits, once it is investigated, it will affect the normal operation!
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