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Visa vs. China’s Unionpay: Facts

Visa vs. China’s Unionpay: Facts
2010/6/5 15:58:36
It was reported that VISA suddenly declared a ban over the China’s Unionpay among its substitute institutions.

I was wondering what happened to drove VISA to make such a decision… were there any behind door disputes?

The cause behind the decision was not reported in China.

And the following is an article concerned from abroad:…-analyst-blog/

Visa Blocks UnionPay Transactions – Analyst Blog

On Wednesday, the official China Securities Journal reported that Visa Inc . ( V ) has ruled out that from Aug 1, all its global financial institutions should stop making any international transaction through UnionPay system, China’s sole bank card processor and a co-brand of Visa itself. Visa has gone to the extent of warning its member institutions with stipulated fines if they go ahead with UnionPay system. The company also attempts to block its transactions outside China using UnionPay system. These transactions include both ATM cash services and other card payments. The decision was ruled out on the back of the barriers to trade in China due to political and economic factors. While China enjoys an attractive and fast-growing bank card market, its business and political policies bar foreign companies from penetrating into the Chinese market. However, government-backed UnionPay seeks to enter newer global markets to poach on the market shares of global competitors such as Visa, MasterCard Inc . ( MA ) and American Express Co. ( AXP ). These one-sided barriers have impelled Visa to take such an action. Further, since its inception seven years ago, UnionPay has been enjoying a monopoly status in China since it is backed by the government. Moreover, UnionPay is the biggest card company globally in terms …



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