UnionPay Program Highlights
UnionPay program highlights are as follows:
Sales Currency:
U.S. based merchants can display their cost of services in USD. The numerical system is a universal language as numbers are visible on UnionPay cards. The Chinese are accustomed to checking the daily Foreign Exchange Rate (FX) and understand the applicable USD to YUAN conversion.
Optional Authorization Currencies:
CNY, EURO, GBP, AUD, CAD, NZD, SGD, HKD & JPY
Optional Settlement Currencies:
CAD, GBP, EURO, AUD
Settlement Schedule:
T+3 (from date of transaction barring holidays or events outside of our control that may cause delays).
Funding Model:
Net deposit minus discount rate, per transaction fees and reserves (if required).
Currency Conversion Fees:
None – daily exchange rate is locked down daily by UnionPay at 11pm China Time Zone.
Merchant Monthly Sales Volume Limit:
TBD per merchant request & approved during underwriting process.
Credit Card Spending Limits:
UnionPay credit card limits are open ended with spending limits applicable depending on the “open to buy” funds availability on each respective card.
Debit Card Spending Limits:
UnionPay debit card holder daily spending limits are set by China issuing banks; no different than traditional debit cards in the U.S. UnionPay debit card holders are aware of their daily ceiling limitations when making online purchases or making ATM cash withdraws.
Transaction Types Supported:
Purchases (Sale), Purchase Cancellations, Refunds/Credits/Adjustments, Pre-Authorizations, and Pre-Authorization Cancellations.
Fraud Liability Risk:
Currently, UnionPay maintains transactional fraud liability because cardholder data is captured on the UnionPay Online Payments switch (excluding recurring transactions).
Chargeback Risk:
UnionPay Online Payments requires a two-step SMS Veri-code validation and character/numeric verification process. This countermands cardholders from charging back qualified transactions for services rendered creating a more level playing field for the online merchant. Credits, adjustments and refunds remain applicable.
PCI Compliance:
Non-issue (cardholder data is at the UnionPay Online Payments switch; never by merchant’s servers.
DCC Transaction Models:
Approved on a case-by-case basis.
Reserve Requirements:
May be required and are determined during the underwriting process.
Note: SingPayment maintains 100% liability for UnionPay transactions. Accordingly, SingPayment reserves the right to establish merchant reserves. The decision, structure, and requirements of reserves are decided in the underwriting process or at any time during the term of the agreement.