Before you try to wrap your head around the type of merchant services provided by UnionPay, you first need to understand the meaning of merchant services. Merchant services are a range of financial services offered to businesses by various financial providers. They allow business entities to accept non-cash payments through secure methods via customers credit or debit cards. So how exactly does UnionPay fit into the world of merchant services?
China UnionPay is an International financial services provider that has its origin in Shanghai, China. It was founded in 2002 and is the only state backed financial services provider which integrates systems between all banks across China. It acts a credit and debit card payment authority. It was created as the Chinese answer to the Wests’ dominating financial service providers, Visa and Mastercard. However, UnionPay does far more than mimic its western counterparts, it offers streamlined services which are integrated across China and internationally as well. It has diversified its portfolio during the rise in popularity of crypto currency to include a wide range of E-wallets.
UnionPay has broadened its reach to include every urban and rural area in China and is accepted in over 110 countries and over 400 financial institutions. Some of the major benefits of services offered by China UnionPay include the standard processing of payments made via credit or debit card which are:
• Merchant Cash Advance
• Online Transaction Processing
• Point of Sale Operations
Merchant Cash Advance vaguely translates into a method of small business financing. It entails borrowing a certain amount of money from UnionPay and paying back the said amount via future generated credit card sales. It differs from a typical loan in that the repayment options are generally more relaxed.
UnionPay currently utilizes SUSE Linux Enterprise Servers to successfully navigate across the realm of online purchasing. It is a system which smoothly facilitates and manages the applications geared towards online purchases.
The company also offers state of the art point of sale systems which grants the advantage of being able to simply update inventory prices without the cumbersome task of manually updating price tags. It also offers an efficient mechanism to keep track of loyalty program rewards.
Despite being the first of its kind in China, the company soon faced fierce competition as more and more players entered the financial services game. UnionPay, however has continued with its phenomenal growth, securing over 5 million merchant accounts and 6 million terminals worldwide. The reasons as to why are clear, UnionPay services are quite simply a cut above the rest.
China UnionPay clients enjoy many premium services. Some of which include preferential rates when signing up for Point of Sale terminals. Reports are available over short time periods and even on demand if necessary. International companies also avail a significant bonus in that their integrated account allows them entry into the retail market of China which is the biggest retail market in the world. These advantages, however, pale in comparison to the to the main goal of China UnionPay which is to offer comprehensive and wide-ranging payment solutions.
Benefits of UnionPay are:
• Exposure to a huge market
• Business success
• Acceptance of international cards
• Acceptance of billions of Chinese credit cards
• Secure online transaction
An obvious benefit to opening a merchant account with UnionPay is that it gives you instant exposure to a 1.5-billion-person market. Setting up an account would be a big step towards the future success of your enterprise in both the real and online world. Since being the owner of a UnionPay merchant accounts means that you can now accept payments from 2.5 billion Chinese credits cards as well as all major international cards, this can significantly boost your online sales and credit purchases. A UnionPay account is a trusted service and millions of people regularly use their online facilities due to the renowned reputation for secure online transaction processing.
The process is generally fast and streamlined. It can be established through many online portals and is verified within a minimum of 48 hours. You merely have to download the application form from the UnionPay site and fill in the necessary information. Once done the form can be submitted at a Chinese bank or via online. When your account has been set up and verified, your business will be able to accept all UnionPay cards. International companies will be able to avail the use of Chinese Based banks without having a bank account in China. High risk merchants will still need to work through a CUP provider like Global Pay LTD.
According to the latest data, UnionPay has a yearly growth rate of 31% and has processed 53 million Yuan worth of transactions. You might wonder how each transaction is processed by such a large financial institution.
Once the customer has purchased a product, the Point of Sale terminal captures the customer’s data and sends it to the relevant banking acquirer to obtain permission from the customer’s bank to authorize payment to the merchant. Once the transaction is authorized, the message to proceed with the transaction is relayed back to the merchant. The merchant’s account is credited with the purchase amount.
Recently both UnionPay and Mastercard have entered into an agreement regarding their payment gateway. A payment gateway is responsible for sending credit card details to the appropriate merchant account in a secure manner. It is also responsible for detecting fraudulent details and maintaining links between the issuing bank and the merchant account. The new agreement states that both parties will reconfigure their payment gateways in order to operate and navigate through the same systems. Essentially this opens a whole world of transactions to any UnionPay merchant account holder.
The future of UnionPay and anyone associated with it remains bright. The company has launched its vision of the future, which includes payments via photo and the use of ultrasonic sound codes. A more practical enhancement is its risk management system which promises to minimize the threat of credit fraud by verification of user details in real time. Union pay is committed to offering unique solutions which allow for easy facilitation for both customers and merchants alike.