FIGHTING BETWEEN VISA AND CHINA UNION PAY

On June 2, VISA has asked its member to stop use China Unionpay system, the national's sole band card payments processor, for international transactions in order to prevent China Unionpay gets more from its oversea markets.

Today, China UnionPay said the VISA has no right to order its financial member to stop use UNIONPAY system for these cards which have co-brands of VISA and UNIONPAY.

A lot of Chinese people think it is a kind of hegemony from west countries, its aim is to defer the development of China's encomomic.

Actually,  I don't agree with above . All of disputes are from the monopolization of China UnionPay in its domestic market. In China, all of cards should use UnionPay system as well as VISA and Master.In other words, China UnionPay gets all of profit from card used no matter people use which card. Now Unionpay wants to develop its overseas market as more and more Chinese people travel to overseas and Unionpay also tell Chinese people that if they use Unionpay system in other coutries, the fees of currency exchange will be free rather than 1%-2% of Visa or Master. So VISA feels menaces, they think it is impossible to allow other company which has closed its domestic market yet to share market with them. If above regulation of VISA is implemented by its financial members, maybe MASTER will do same.

There is only way to solve the dispute that China Unionpay opens its market to foreign company and allow various bank can use different card system, otherwise its development will be limited in domestic