IS THE ERA OF "PERSONAL PAYMENT CODE" COMING TO AN END? NEW REGULATIONS HAVE BEEN RELEASED

Can we still use the mobile payment for our future consumption? Why should such a convenient transaction channel be banned for commercial use?


Unexpectedly, the state announced new regulations that will prohibit the use of personal collection codes for business purposes and other commercial purposes and will be officially implemented from March 1.


So, does this mean that the era of "personal payment code" is coming to an end?


Can we still use mobile payment for our future consumption? Why should such a convenient transaction channel be banned for commercial use?

There are two types of payment codebooks, one is a personal code and the other is a merchant code. The regulatory notice issued by the central bank for barcode payment is that after the implementation of the new regulations on March 1, personal collection codes are prohibited from commercial use, and their remote payment functions will be limited.


That is to say, as long as we do not engage in commercial business activities, the personal collection code is basically unaffected, and we can use it as before.



However, for those small merchants who do not have a fixed booth, if they want to continue to collect money online, they need to upgrade their personal collection code to a commercial collection code, which is not difficult.


The crux of the problem is that the rate of withdrawal of personal collection codes is very low, generally only 0.1%, while the withdrawal rate of commercial collection codes is 0.6%. , the withdrawal fee suddenly increased by 6 times, and it is estimated that many people are unacceptable.


If they choose to only accept cash, then I am afraid that those of us who eat melons will need more or less cash in our pockets when we go out to spend in the future.


As for why the central bank issued this new regulation, the main purpose is to regulate the mobile payment market and prevent the occurrence of various financial violations.



You must know that mobile payments such as WeChat and Alipay belong to third-party payment platforms in the final analysis. If both personal codes and commercial codes can be used for commercial activities, then various transaction flows will be mixed up, which not only increases the difficulty of tax management, but also It may give some criminals an opportunity.


I believe that many people have seen news like this. For example, some people take advantage of the merchants' inattentiveness, and they change the merchant's personal collection code to their own at night, so as to get nothing for nothing; some criminals are conducting fraudulent activities.


Later, in order to prevent the source of income from being investigated, hundreds or thousands of personal payment codes were used for money laundering; there were also the sky-high tax evasion and tax evasion incidents that caused public opinion by a well-known anchor with goods not long ago.



They all took advantage of the loopholes in the mobile payment market, which was the loophole at that time. However, with the release of this new regulation and the continuous popularization of "digital renminbi", the mobile payment market will be further regulated, and all kinds of financial violations like the above will be largely reduced or completely eliminated.


In general, the new regulations prohibiting personal payment codes from being used in commercial activities may force some small traders to only accept cash, but for the vast majority of us, as well as the future development of China's economy and financial market, The pros definitely outweigh the cons.


What do you think about this?




Credit to Source: INEWS

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