Risk analysis of bank credit card
With the rapid development of credit card business and the continuous growth of credit card business, the frequency of credit card business risks is also increasing, causing more and more losses to card issuers, special merchants and cardholders, and the problems in risks are becoming more and more serious. The risk in the issuing bank is mainly its own problem, and the issuing bank is the source of all problems. The loopholes in the bank's own operation provide an opportunity for credit card criminals, leading to constant risks. Banks should strengthen credit card risk management, strengthen the supervision of laws and regulations, improve the overall quality of employees, prevent the occurrence of illegal acts, improve the rights of card-issuing banks, and make them operate normally, efficiently and legally. Special merchants play a connecting role, so we should attach great importance to every pass and block every possible loophole in the process of connecting up and down. In addition, their own risk is also an important issue, and the comprehensive quality of personnel should be improved in order to better safeguard themselves and their rights and interests. Cardholders are the weak group among the three, so they should not only pay attention to "self-protection", but also pay attention to some unreasonable laws and regulations, and have a strong sense of self-protection. In short, the development of China's credit card business is not very mature, and various laws and regulations are not perfect. We should learn more from foreign experience and formulate relevant laws or regulations from the perspective of safeguarding public interests and protecting consumers. We should not only protect the interests of the industry, but also promote the development of the banking industry at the expense of consumers.
Keywords: credit card risk analysis
Since the first credit card (BOC card) was issued by Bank of China Zhujiang Sub-branch/KLOC-0 in June, 1985, it has been favored by mass customers because of its convenience and quickness. China's bank card business has developed by leaps and bounds. The issuing banks, the number of cards issued and the transaction amount have all increased greatly, and the credit card use environment has also been greatly improved. Take Shanghai as an example. By the end of 2002, the total number of bank cards issued in the city reached 35.65 million, an increase of 27.5% over the previous year. The number of bank card transactions was107.5 million, and the total transaction amount was106.5 billion yuan, and 3282 ATMs and POS16938 POSS were deployed. In 2002, the number of online merchants of bank cards increased from 2 184 at the beginning of the year to 5,780, and16,234 POS were connected to the Internet. The total transaction volume of ATM and POS in the whole year was 565,438+085.72. According to conservative estimates, by 2007, the total investment in Shanghai's bank card industry construction will exceed 654.38+000 billion RMB, the total annual output value will reach more than 20 billion RMB, and the number of employees will reach about 30,000.
Credit card business has become one of the most profitable departments of commercial banks. In western developed countries, credit card business is the main business and main profit source of many large international banks. For example, Citibank's credit card business accounts for one-third of its total profits, and American Express's American Express card business accounts for 70% of its total profits.
Credit card risk
With the further development of credit card business, credit card risks occur more and more frequently. There may be risks in the issuance, use and settlement of credit cards. Moreover, with the increase of card issuers, special merchants and cardholders, credit card risks are characterized by wide coverage, diverse risks and great harm, and the profits of card issuers are gradually decreasing. In most cases, these losses are made up by the profits of banks. Therefore, some legal problems of credit card risk are prominent.
We know that one of the main reasons for credit card risk is caused by the issuing bank itself. For example, except for CCB, there are two ways to confirm the relationship between credit card consumption. Banks such as Guangfa Bank, Bank of China and China Merchants Bank still use signature to confirm, and cardholders do not need to enter a password for credit card consumption. These are loopholes in the card-issuing bank's own operation, and also provide many opportunities for credit card violators, which leads to risks.
Strengthening credit card risk management is also the need to safeguard the interests of special merchants and cardholders. Credit card risk is another major reason, which is caused by the illegal operation and negligence of special merchants and the cardholder's failure to use the credit card according to the regulations. In the process of strengthening risk management, card issuers pay attention to the training of special merchants and publicize the awareness of using credit cards to the general public. This will greatly reduce the occurrence of risks and safeguard the interests of special merchants and cardholders.
Second, the three parties hold different views on whether to adopt signature confirmation system or password confirmation system for consumption.
However, in recent years, banks have different attitudes and behaviors about whether to adopt signature confirmation system or password confirmation system for credit card consumption, and there are different views from all walks of life. Those who support the password confirmation system believe that it is to meet the consumption habits and security needs of cardholders, and many card-issuing banks have also put it into practice. Those who support the signature confirmation system believe that the signature confirmation system conforms to the international practice of credit cards, and password credit cards will bring a lot of convenience to consumers. Signature confirmation system can ensure the security of cardholders' funds, and many banks still use signature confirmation system.
Article 43 of the Measures for the Management of Credit Card Business issued by the People's Bank of China on June 5438+0996+1 October 26: When accepting credit cards, the handling personnel of special units shall review the following contents: (1) It is indeed a credit card accepted by the unit; (2) The credit card is not included in the "stop payment list" within the validity period; (3) There are no words such as "sample card" and "special card" on the signature strip; (4) The credit card has no traces of punching, cutting corners, destroying or altering; (5) The photo on the cardholder's ID card or card is consistent with that of the cardholder; (6) The pinyin name on the front of the card is consistent with the signature on the back of the card and the name on the ID card. It can be seen from these regulations that there are many loopholes in bank credit cards.
At present, the voice of supporting password confirmation system is getting higher and higher, and banks that adopt password confirmation system particularly emphasize that this is a strong demand of users. According to the information released by SDB, among the nearly 654.38+million credit cards issued by SDB, 98.5% cardholders chose password confirmation, and only 654.38+0.7% cardholders chose signature confirmation. China UnionPay also expressed its support for the cryptosystem. It seems that the adoption of password confirmation system for credit card consumption is popular, the trend of the times and the safest means. The core reason put forward by those who advocate the confirmation system of credit card consumption password is that the current signature can not effectively confirm the identity of the "cardholder" (the person who prompts the special merchants about the credit card), and can not well prevent the credit card from being stolen, so as to ensure the safety of the cardholder (the person who issued the credit card with the consent of the card issuer, including the main cardholder and the deputy cardholder when there is no other special agreement).
When a consumer uses a card, the credit card merchant needs to verify the identity of the cardholder and confirm the identity of the cardholder, that is, the cardholder is the cardholder who legally uses the credit card with the consent of the issuing bank. How exactly did the special merchants confirm the identity of the "cardholder" and what was the basis? We observe from the consumption and use items of card issuers with larger circulation, more cardholders and wider use.
According to the articles of association of the Great Wall Credit Card of Bank of China, the cardholder of the Great Wall Card can use the Great Wall Card and his/her ID card (resident ID card, military officer's card, passport) to spend directly at the special merchants of Bank of China without paying any extra fees.
According to the articles of association of China Construction Bank Longka Credit Card, when using Longka, cardholders need to show their valid identity documents (except colorful Longka) and sign their real names on cash withdrawal, consumption, transfer and other documents according to bank regulations.
Articles of Association of Peony Credit Card of Industrial and Commercial Bank of China: When the cardholder purchases, consumes or withdraws cash with the Peony Card, he/she must present his/her ID card (resident ID card, military officer's card, passport, visiting relatives card) at the same time, and must abide by the relevant regulations of the card issuer when depositing and withdrawing cash at the ATM of Industrial and Commercial Bank of China or transferring money at the POS terminal of the point of sale.
One-way Jinsui Credit Card of Agricultural Bank of China: With Jinsui Credit Card and my valid ID card, the holder of Jinsui Credit Card can deposit and withdraw cash at the institution designated by Agricultural Bank of China, handle the transfer, and purchase special consumption at special merchants.
From the analysis of the credit card regulations and descriptions of several banks listed above, we can't draw the conclusion that the identity of special merchants should be confirmed by the identity documents produced by the cardholder according to the consistency of the credit card name pinyin and signature with the ID card name, the consistency of the ID card photo with the image of the cardholder, or the consistency of the credit card photo with the image of the cardholder.
If signature is a way to confirm the identity of the cardholder, there is no special requirement for the cardholder's signature style, and even the cardholder can write a few words casually in the usual font to identify the identity of the writer through writing habits. Then special merchants should have measures to authenticate signatures, including certain technical equipment and personnel with good authentication experience, but in fact special merchants do not have such conditions. And it is not practical to do so. Apart from considering the development level of identification technology itself, it is unnecessary from the economic point of view and the cost is very high. After all, credit card consumption is a transaction, and the transaction requires convenience and speed. Strict handwriting identification is very important in criminal proceedings, but it is not important in civil activities, which are always based on certain credit. In some cases, the law presumes the trust of the parties in certain facts.
Therefore, in China, signature is not a means for special merchants to verify the identity of "cardholders" and confirm the identity of "cardholders" and sample cardholders. Require the cardholder to sign the same, which really means that the signature is the proof of the cardholder's trading intention.
When we use cash for consumption, the transaction is settled in time, and consumers get goods or services from merchants and pay them cash. There is no need for some form of contract between the two parties, because the contract is actually a sale between the two parties in the future. The merchant only provides a certain receipt to the consumer for reimbursement, return or as evidence that the merchant bears the product responsibility, or does not provide any evidence at all.
Credit card consumption is a kind of credit consumption. When a merchant provides goods or services to a cardholder, the cardholder fails to pay the price to the merchant, gives him a certain amount of credit, and then the issuing bank pays the merchant. Such businesses must keep evidence that they have provided goods or services to cardholders to prove that they have formed a creditor-debtor relationship with cardholders. As the person who gives credit to the cardholder, the issuing bank has its own payment business. The signature of the "cardholder" on the purchase order is the expression of the "cardholder"' s approval of the transaction, and this purchase order is the proof that the trading intentions of both parties are consistent. At the same time, the signature of the "cardholder" is consistent with the signature on the credit card, which proves that the intention is expressed by a legitimate cardholder with the credit of the issuing bank. Establish credit relationship between special merchants and cardholders. According to the credit relationship between the card issuer and the cardholder, the card issuer, that is, the bank, pays the price to the special merchant, and then the cardholder repays the card issuer.
It can be seen that in the whole credit consumption transaction relationship, the real transaction relationship between the special merchants and the cardholders is the foundation. Without this foundation, the relationship between the issuing bank and the special merchants, and between the cardholder and the issuing bank cannot be established, and the purchase order with the qualified signature of the cardholder is the proof of this real trading relationship between the two parties. In addition, the issuing bank stipulates that a person with full capacity for civil conduct can apply for a credit card and a supplementary card for a spouse or relative with full capacity for civil conduct, indicating that credit consumption is a civil legal act, and the actor needs to have corresponding capacity for civil conduct and ability to express his will. Therefore, in fact, the consistency between the cardholder's signature and the credit card signature is the interest of the special merchants and the issuing bank. Their confirmation of the authenticity of the signature is to protect their own rights and interests, and the purchase order is an effective voucher for credit transactions. In this way, all kinds of due diligence obligations and responsibilities are passed on to the cardholder by the issuing bank and the special merchants, and the issuing bank and the special merchants do not bear their own obligations and responsibilities.
Credit card is a special card issued by the bank to those with good economic conditions for shopping and spending at designated merchants or depositing and withdrawing cash at designated banking institutions. It is a credit payment tool with all or part of the functions of consumer credit, transfer settlement, cash deposit and withdrawal, and it is a special credit certificate. The process of credit card consumption transaction is that the cardholder spends money at the special merchant, the issuing bank pays the price to the special merchant, and the cardholder repays the money to the issuing bank, which involves three parties, namely the cardholder, the special merchant and the issuing bank. In the process of credit card consumption, the issuing bank promises to pay the authorized merchants, so from a civil point of view, when the authorized merchants conduct credit transactions with the "cardholders", they must first confirm them. In fact, this duty of care is for one's own benefit, not for the benefit of others. From a criminal point of view, credit card theft may constitute a criminal offence, and special merchants have the obligation to confirm the identity of "cardholders" and prevent crimes. If it fails to fulfill its duty of care, or intentionally fails to fulfill its duty of care, then in a sense, * * * has committed the crime of credit card fraud. If the credit card is stolen because the special merchant fails to fulfill his duty of care, the loss shall be borne by himself, the issuing bank shall not pay for it, and the cardholder has no obligation to repay the card to the issuing bank. However, the duty of care and the loss are subtly, unfairly and grandly passed on to honest cardholders by banks and special envoys. Card issuers all indicate in the credit card articles of association: "24-hour exemption clause for loss reporting". (The cardholder shall be responsible for the losses within 24 hours from the date of reporting the loss, and the bank shall be responsible for the losses within 24 hours after reporting the loss).
Such a "24-hour exemption clause for loss reporting" seems to be the distribution of risks and responsibilities between banks and cardholders. It is bounded by a certain time after reporting the loss. If the credit card is stolen, the risks and losses arising therefrom shall be borne by the cardholder, and the risks and losses thereafter shall be borne by the bank. When the credit card is stolen and used 24 hours before the cardholder reports the loss, the risk and loss shall be borne by the cardholder, and the bank shall pay the special merchant and the cardholder shall repay the money to the bank. In addition, according to Article 52 of the Measures for the Administration of Bank Card Business promulgated by the Central Bank, Kuifuka Bank has the obligation and should provide cardholders with loss reporting service of bank cards, and should set up a 24-hour loss reporting service telephone number and provide two written loss reporting methods to report the loss in writing formally. And in the articles of association or related agreements, the responsibility for reporting the loss between the issuer and the cardholder is clearly stipulated. This seems to be the legal basis for the bank's "24-hour exemption clause for loss reporting".
However, the principle of imputation in civil law is not the same. On the basis of fault, the person at fault bears the responsibility. Cardholders are obliged to take care of their credit cards. If they lose control of their credit cards, sometimes there will be problems. However, if this is just a general fault and the obligation to report the loss is actively fulfilled, there is no necessary connection between the "loss reporting-theft-loss reporting" of credit cards and it cannot be attributed. After all, one of the characteristics that credit cards are highly praised by issuers and cardholders is "security", that is, credit cards are not like cash. So we can't ask the cardholder to bear the loss just because he loses control of the credit card.
In the United States, the federal law protects cardholders as follows: after losing their credit cards, consumers only bear the responsibility of unauthorized consumption of up to $50; It can be said that American law provides sufficient protection for credit card consumption.
In this way, strengthening credit card risk management can effectively promote the business personnel of card issuers to operate according to law, prevent the occurrence of illegal acts, improve the business level of card issuers and their ability to safeguard their rights and interests, promote banks to establish a standardized and effective credit card risk prevention mechanism, and make the credit card risk prevention work of the whole card issuer orderly.
Third, the specific analysis of credit card risk management means
1. Risk avoidance
Risk avoidance means that the card issuer consciously takes evasive measures to abandon or reject a certain business because it finds that engaging in a certain business activity may bring risk losses. That is to say, on the basis of analyzing the possible losses caused by risks in this business and the gains that can be obtained by taking such risks, the card issuer thinks that the gains are less than the losses and avoids them. It can be said that this is the simplest risk management method. For example, in the process of applying for a credit card, it is difficult for the card issuer to conduct a comprehensive investigation on the applicant's credit status, and it is also difficult to be sure of the authenticity of the information provided by the applicant, so it is a risk aversion to voluntarily refuse to issue a credit card to the applicant in order to avoid future risks.
Risk avoidance measures are clean and neat, and the issuing bank does not need to worry about the possibility of future risks, that is, the cost is very small or even zero. But we must see that zero cost is accompanied by zero income. Because you give up or refuse a business, you will also give up the income that may be brought by engaging in this business. A commercial bank is an enterprise legal person, and should take "three natures" as its operating principle (especially for profit, without which there is no vitality. Moreover, at present, the profitability of credit card business is relatively high, and domestic major banks are competing to develop credit card business. If you often take the risk-averse approach, it will have a great impact on his business development and it is difficult to compete with other banks. Therefore, although avoiding risks is extremely effective, it is very uneconomical. While keeping risks out, we also keep interests out. Therefore, it is an expedient measure to avoid the passive defensive nature. Banks can't give up eating because of choking, regardless of the risk.
2. Risk prevention
Preventive strategy means that the card issuer takes certain preventive measures in advance to reduce or reduce the possibility of credit card risks before they occur. The biggest difference between prevention strategy and evasion strategy is that it is a proactive strategy, and banks take the initiative to reduce the number of risks and the scale of losses by taking measures. At present, the means of risk prevention generally include cardholder risk prevention, special merchant risk prevention, card issuer internal risk prevention and credit card fraud risk prevention.
Compared with other credit card risk strategic means, prevention has the advantages of safety, reliability, low cost and good social effect. What is particularly worthy of recognition is that it can effectively nip in the bud and truly achieve the purpose of "combining prevention with elimination". If the preventive measures are done well, the probability of illegal credit card activities will be greatly reduced, which can prevent the occurrence of risks from the source and reduce the probability of risks. Of course, we should also pay attention to how to face risks correctly. Because risk is not equal to loss, some risks may not really happen. We should weigh the ratio of risk and possible income, and make sure that the income exceeds the loss caused by risk, and do it boldly.
In practice, banks can take many preventive measures, such as strengthening the training of special merchants, guiding cardholders to use their cards, and strengthening the management of overdraft loss reporting. Here, only the management of overdraft and loss reporting and stop payment is analyzed in detail.
(1) Overdraft risk management. "Credit card overdraft is essentially a loan issued by the issuing bank, but unlike other loans, it is generally formed and discovered in the process of payment settlement and authorization." Credit card overdraft can be divided into goodwill overdraft and malicious overdraft. Goodwill overdraft is a normal overdraft, and generally there is not much risk. Malicious overdraft refers to the overdraft behavior of the cardholder for the purpose of illegal possession, which exceeds the prescribed limit or time limit and is invalid after being collected by the issuing bank. The loss caused by malicious overdraft directly constitutes the cost of credit card business. In particular, the development of electronic means in China is lagging behind, the transmission speed of stop payment bills is slow, the automatic authorization equipment is imperfect, the loopholes in business management departments and the lax review of special merchants are causing more and more malicious overdrafts and increasing losses. But can you be afraid of overdraft business because malicious overdraft will cause great losses? Let's analyze it. Article 23 of the Measures for the Administration of Bank Card Business stipulates that credit card overdrafts will be compounded monthly, and quasi-credit card overdrafts will receive simple interest monthly. The overdraft interest rate is 0.5 ‰ of the daily interest rate, which will be adjusted according to the interest rate adjustment of the People's Bank of China. It can be seen that the interest rate of credit card overdraft is very high. The income sources of credit card business mainly include cardholder's annual fee, information exchange income, interest income and other expenses and income, among which interest income accounts for the largest proportion (overdraft interest income of many foreign banks accounts for 80% of all credit card business income).
By comparison, we can easily find that the development of overdraft business is beneficial to the issuing bank, even if overdraft risk does exist. Therefore, it is not easy to cancel the overdraft function of customers' credit cards. The key is to correctly distinguish between reasonable overdraft and malicious overdraft. We should try our best to increase the number of reasonable overdrafts and reduce or even eliminate the number of malicious overdrafts. In practice, we should establish a correct concept of risk (in a sense, it is a big risk and a big profit), take risk management as a way to maximize profits, strengthen the management of credit card overdraft, do not engage in agreed overdraft according to the relevant regulations of the central bank on credit card business, minimize the settlement links of credit card transaction funds, and improve the settlement speed, so as to timely calculate the credit card overdraft and ensure the normal income of banks.
(2) Risk management of loss reporting and payment stopping. Credit card stop payment is an act that the issuing bank carries out to protect the interests of the cardholder and the issuing bank due to loss reporting, theft, malicious overdraft, violation of the credit card regulations and other reasons. Stopping payment can improve the capital security of the issuing bank and the cardholder, and effectively reduce the credit card risk. In practice, it is easy to have disputes about the determination of the time to report the loss and the risk responsibility after stopping payment.
It is of great significance for risk liability to determine the time to stop paying the loss. Paragraph 5 of Article 52 of the Measures for the Administration of Bank Card Business stipulates that the issuing bank shall provide cardholders with the service of reporting the loss of bank cards, and shall set up a 24-hour service telephone to report the loss by telephone or in writing, with the written loss as the formal way. And in the articles of association or related agreements, the responsibility for reporting the loss between the issuing bank and the cardholder is clearly stipulated. Because there is no uniform regulation, each card issuer has its own regulations on the time and responsibility of reporting loss and stopping payment. For the loss before the loss is reported and payment is stopped, the articles of association of each issuing bank stipulate that the cardholder shall bear the loss. However, there are different regulations on the risk after loss reporting. According to the credit card regulations issued by domestic banks (see General Theory of Credit Card Business Management edited by Wang Zhengzhong, People's Publishing House 1996), the risk liability is mainly determined at the time of loss reporting, 24 hours after loss reporting, 24 hours after loss reporting and 36 hours after loss reporting. ((So, is it necessarily beneficial for the bank to stipulate that the risk liability shall be borne by the cardholder for a period of time after the loss is reported? It is true that such a provision of the issuing bank can reduce the resulting risk losses and reduce operating costs. But from an economic point of view, this is not in line with the purpose of maximizing interests. According to the empirical economic analysis of the law, "the loss must be allocated to the party who can bear the risk of such loss at the lowest cost." ((that is, we must first judge the cost of each party's prediction and prevention of this risk, and then decide the party that spends less to bear this risk and responsibility. From both the cardholder and the issuing bank, there is no doubt that the issuing bank is the easiest to predict and prevent this risk. When issuing this service, the issuing bank should foresee the risk of easy loss and fraudulent use of credit cards, and only the issuing bank can effectively prevent the fraudulent use of credit cards. Furthermore, even if a loss does occur, the issuing bank can transfer the risk by applying for insurance with an insurance company, thus effectively avoiding the resulting loss, which is difficult for cardholders to do. It can be seen that the risk cost of the issuing bank in preventing loss reporting is obviously lower.
In addition, in practice, it is doubtful whether the dispute can be supported by the court. In addition, the domestic credit card business is booming. If the issuing bank decisively bears the risk of loss caused by loss reporting, it can effectively attract customers and develop special merchants, which is of great significance to establishing a good bank image. The practice of SDB is undoubtedly forward-looking.
3. Decentralized risk transfer. Decentralized transfer method is a common method in credit card risk management. This way refers to a strategy that the issuing bank distributes the credit card risks it faces to other economic entities through some legal trading methods or business means. The objects of risk transfer are generally guarantors, cardholders and insurance companies. However, we should clearly see that an important feature of this strategy is that the decentralized transfer of risks must be based on someone's assumption. It is for this reason that decentralized transfer should be legal.
Risk transfer should be analyzed on a case-by-case basis, with different costs and different benefits. Only on the basis of scientific analysis can we use them correctly.
(1) to the guarantor. In the actual operation process, the card issuer will ask the applicant to provide a guarantor or unit to clarify their respective rights and obligations on the basis of signing the agreement. When the cardholder fails to perform the debt, the guarantor shall bear the responsibility, thus transferring the risk to the guarantor. However, the time, amount and scope of the guarantor's liability are often controversial, especially when the cardholder overdraws maliciously. Some issuing banks stipulate that the guarantor must bear all the overdraft amount from the date of determining the guarantee, which is debatable. Although the guarantor has signed a contract with the card issuer and is willing to bear the cardholder's responsibility for payment, this does not mean that the guarantor is willing to bear all the losses caused by malicious overdraft, especially the losses after the credit card is fraudulently reported for loss, because this amount is difficult to determine. Because of this, some scholars in our country suggest that the guarantor should bear the greatest guarantee responsibility. Some scholars believe that the responsibility should be allocated according to whether the bank can technically prevent and stop malicious overdraft. ((We don't discuss whether the practices of card issuers conform to the provisions of the contract law and whether they will be supported by court decisions in practice. At least such a provision will damage the enthusiasm of the guarantor and even the social image of the card issuer, which will undoubtedly have a negative impact on the development of the guarantee business.
Therefore, the bank issuing bank should pay attention to how to design the time, amount and scope of the guarantor's guarantee responsibility, which is the most economical, less costly and more profitable.
(2) Transfer money to the cardholder. For example, in the process of applying for a credit card, the applicant is required to apply for a credit card from the bank by means of certificates of deposit, securities mortgage or pledge, and the applicant is required to pay a certain deposit. In addition, there are also common methods to transfer the risk to the cardholder as much as possible through the management of overdraft account and the way of reporting the loss and stopping payment.
(3) Transfer to an insurance institution. This refers to a form in which the card issuer applies for insurance with an insurance company, and when the risk loss occurs, the insurance company makes compensation, so as to avoid or reduce the actual loss. As a risk management strategy, insurance has a long history in financial risk management. As early as the 1930s, after the Great Depression, the United States began the deposit insurance system. Nowadays, it is more and more used in credit card risk management, which is an important means to spread risks and compensate losses. Card issuers can get timely and satisfactory compensation for some unexpected losses in credit card business through a small amount of premium expenditure, thus reducing or reducing risks, which is very economical for card issuers. What we should pay attention to here is the risk loss division, insurance period, premium and insurance liability of insurance companies.
4. Risk compensation. The so-called credit card risk compensation means that the issuing bank seeks partial or full compensation for the financial risk losses that have occurred or will occur through certain channels, so as to reduce or avoid the credit card risk losses. The common method is to establish a risk reserve system, that is, the card issuing and payment stopping institutions take the initiative to incorporate credit card risks into their daily management during the credit card business, regularly extract a certain proportion from the profits obtained from the credit card business to establish a risk reserve, and manage the reserve in a special account to make up for risk losses or bad debts, and turn the balance into profits.
In practice, some losses are inevitable, and the issuing bank should bear this responsibility. The establishment of risk reserve system can effectively deal with this kind of risk loss. Moreover, this method does not cost much, especially it can be used in conjunction with the above measures such as prevention and decentralized transfer. After credit card overdraft is included in loan management, it can be written off when other risk management methods are ineffective.
Fourth, some suggestions.
Through the above economic analysis of credit card risk management, we can see that credit card risk management departments should pay special attention to risk prevention and formulate strict risk management rules and regulations; Attention should be paid to the training of business personnel and special merchants, especially to strengthen the internal management of card issuers. In the process of credit card application, customers are required to deposit reserve funds and provide guarantees. It is necessary to strengthen the management of overdraft loss reporting and stop payment, formulate reasonable operating rules for overdraft loss reporting and stop payment, strengthen contact with insurance institutions, and try to insure with insurance institutions. At the same time, we should establish a correct risk awareness and establish a risk reserve account. If you are really not sure, take the risk avoidance strategy decisively. In a word, the purpose of credit card risk management is to effectively reduce costs and increase income.
References:
1, Shanghai Wen Wei Po, April 2003 15, 14.
2. Shanghai International Finance News, 5th edition on March 26th, 2003.
3. Civil Procedure Law
4. Credit Card Operation of Commercial Banks, Beijing China Financial and Economic Publishing House, 1999.
5. Online excerpts from the credit card articles of association of China Bank.
6. Online extract of CCB's credit card articles of association.
7. Online extract of ICBC's credit card articles of association.
8. Online excerpts from the credit card articles of association of Agricultural Bank of China.