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FSC permits use of China UnionPay card in Taiwan.

Taipei, July 16, 2009 (CENS) -- The Financial Supervisory Commission (FSC) formally announced yesterday (July 15) permitting China UnionPay card holders to conduct card spending in Taiwan, which will greatly facilitate consumption by Chinese tourists on the island.

Industry insiders estimated that the spending volume by the card holders on the island will reach NT$100 billion a year and domestic acquiring banks stand to collect some NT$2 billion of annual fee income from the business.

The liberalization is included in the revision to the "measures permitting financial exchanges across Taiwan Strait." Hsiao Chang-jui, deputy director of Banking Bureau, FSC, pointed out that Chinese UnionPay card holders will be able to conduct card spending on the island from early September at the earliest, after the approval by the FSC of the applications by domestic acquiring banks and the National Credit Card Center (NCCC) and the signing of contract between NCCC and China UnionPay Co., Ltd.

The revised measures allow domestic credit-card institutions to obtain the regulator's approval for engaging in credit-card or debit-card dealings with China UnionPay Co., Ltd., mainly for the businesses of trading authorization and clearance. Domestic banks, though, have yet to be allowed to issue the cards for China UnionPay Card.

NCCC reported yesterday that the company has completed the preparation for setting up a clearance mechanism for China UnionPay card and an industry insider pointed out that there are now 30,000 card terminals on the island available for the use of the card.

China UnionPay boasts 1.8 billion card holders in China and is actually a combination of debit card and ATM (automated teller machine) bank card, only allowing holders to make card spending against their banking deposits, without the credit function of credit card. For the latter, card holders must make specific application with card-issuing banks.

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Title Annotation:Financial Supervisory Commission
Publication:The Taiwan Economic News
Article Type:Brief article
Geographic Code:9TAIW
Date:Jul 16, 2009
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