A Study On The Economic Risk Of China’s Prepaid Card Development

Nowadays, the prepaid cards are developing rapidly at home and abroad. With prepaid cards widely used in China, the risk is becoming more and more serious:Firstly, for card issuers, acquirers, card organizations and business shops, the risk is how to price, namely how should the prepaid cards price to make consumers accept prepaid cards, at the same time, card issuers, acquirers, card organizations and business shops can get profit.Secondly, the risk is that card issuers damage the interests of consumers. The risks of prepaid card issuers to consumers are mainly manifested as:playing missing; playing ideas; playing shrinkage as well as playing four fixed tricks (fixed consumption amount, consumption place, consumption time and range). How to supervise the card issuers which damage the interests of consumers? In our country, we have put forward the third party payment regulations; can the third party payment solve the problem? This paper will study the above problems.Finally, from the macro level, laws and regulations about prepaid cards are not perfect in China. The prepaid cards in a certain extent can replace currency payment, which will bring affect on the central bank’s monetary policy. So how to prevent and supervise the macro risks of the prepaid cards? It is also the problem this paper will study.In short, with the vigorous development of prepaid cards in our country, we should research on the three problems and put forward corresponding countermeasures. In the development of China’s prepaid card industry, we can draw lessons from foreign prepaid card development and management experience, at the same time; we should consider the adaptability in China problems. On strengthening the supervision and management, it is necessary to combine the reality of our country’s social and economic development to undertake theoretical analysis, to take measures to avoid the risk. Therefore, the current study of our prepaid card development economic risk has a strong theoretical and practical significance. There are eight chapters in the paper:The first chapter is mainly about a review of the background, meaning and research status at home and abroad, and introduces the way, structure, main contents, research methods and innovations of the study.The second chapter is about a review of bank card and prepaid card theory. In this section, we firstly discuss the origin and theoretical basis of bank card and prepaid card, and then analyze the connotation of risk and risk measurement method. Finally, we analyze risk theory which relates to bank card and prepaid card.The third chapter is about the history of prepaid card development and the problems. Firstly, the section studies the history of prepaid card development in our country. Then, the section discusses the present situation and the existing problems of prepaid card market development.The fourth chapter is about pricing mechanism and risk of prepaid card in our country. This part first analyzes price system in China’s prepaid card market, and analyzes the main factors affecting the market price of prepaid cards. Next, the part analyzes prepaid card market pricing mechanism from static and dynamic perspective. Finally, this part discusses the pricing risk of prepaid card market, namely, the risk of rejecting prepaid card and sale risk.The fifth chapter is about the risk of prepaid card in China. Firstly, the part analyzes the risk brought by prepaid card, such as credit risk, fraud risk and safety risks. Then the part analyzes macroeconomic risks brought by prepaid card, such as the affect of prepaid card on central bank status, on monetary supply and demand, the impact on the ultimate goal of monetary policy, the influence on commercial banks, and the affect on the payment system. Next, this part analyzes the anti-money laundering risk brought by prepaid card. Finally, the part takes out empirical studies to test the affect of prepaid card on money supply and central bank Seignior age.The sixth chapter is about the regulation of prepaid card. Firstly, the part discusses the supervision experience of the United States, Japan and other countries, and then analyzes the prepaid card market supervision present and existing problems in China. The seventh chapter is about the suggestion of our prepaid card development. Firstly, this part puts forward we should accelerate the prepaid card regulatory legislation to deal with prepaid card risks, and then puts forward that we should set up a sound card risk management system to further strengthen the management of risk. Next, this part puts forward that we should build competitive prepaid card market to promote the development of prepaid card market. Finally, this part proposes we should take out new product and service innovation to cope with risks and maintain the stable development of prepaid card market.The last chapter is about the conclusion and suggestion. Firstly, the section draws the conclusion of the whole research. And then, the section takes out the research contributions. Finally, the section presents suggestions for future research.