The Investigation Of Legal Issues Concerning The Third-Part Payment Platform

The third-part payment is a new trade model, mainly used in the Internet transactions by presenting a platform between purchasers and sellers, working as an intermediary structure. In the course of transactions, the third-part payment could provide both sides with credit guarantee by keeping the purchasing prices temporarily. Meanwhile, by effective and efficient restriction and supervision on both sides, it could ensure the goods quality together with trading credit as well. The third-part payment effectively tackle the paying problem of online transactions and eliminate the concerns of both sides. In the e-commerce, due to the inconsistency in time and space, separation of transfer of goods and funds as well as information asymmetry, purchasers and sellers could hardly trust the other part, therefore, e-commerce could hardly develop smoothly. The third-part payment could address the problem of security needs and to some extent, prevent the occurrence of fraud, so that the online transactions could proceed smoothly. However, as the e-commerce is a quite new transaction model and the third-part payment is just emerging almost recently, so the existing law for the legal position of third-party payment platform is not very clear. For the lack of legislation on the regulating third-part payment, laws concerning banking regulation are in charge of tackling relative problems before the promulgation of specialized laws. Our national legislation, on the other hand, will continue to explore. After three years since People's Bank of China promulgated"Payment and settlement organization and management approach (draft)", in June, 2010, another regulation concentrating on third-part payment platform"non-financial institutions payment service management approach"(hereinafter referred to as"management approach") was finally available. On 21st, September then, People's Bank of China promulgated"Payment of service management for non-financial institution regulation (draft)"(hereinafter referred to as the "Rules"), which regulated the implementation and practice of"management approach". After perusing the contents of these two regulations, we are convinced that there is indeed great progress, however, problems could not be denied. Obviously, these regulations are not panacea and impossible to address all problems, therefore, legal experts need to take further study. In order to solve the following problems, experts are required to come up with legislative suggestions and measures to achieve the purpose of improving the third-part payment platform, that is the legal position of the third-part payment, the legal status of both sides in transactions, laws applications as well as providing consumers with targeted protection and so on. This essay, concentrating on the legal position of the third-part payment, the legal status of both sides as well as legal problems during transactions, analyzes thoroughly the significance of the third-part payment, development, regulatory pattern. It focuses on the practical possibility and conditions of the problems in question, and further more, comes up with suggestions and proposals to improve our nation's legal systems by referring to foreign relatively legislative positive points. Besides the introduction and conclusion, this essay is divided into four chapters.The first chapter deals with the concepts and basic theoretical issues of the third-part payment, meanwhile, discusses briefly the its emerging causes and development process based on the definition of third-part payment. It, at the same time, investigates the rationality and creativity of the third-part payment as a new trade model, coupled with legal relations. On the basis of that, the essay demonstrates on the necessity of the third-part payment, analyzes the current legislation, and then analyzes the shortcomings of existing legislation.The second chapter analyzes the legal characteristics the third-part platform, and points out the third-part platform is not simple for trading, but for intermediary services in the non-financial platform and settlement. Then analyzes its legal position and the way of regulatory .The third section presents the operating mode and typical cases of the third-part platform. It exemplifies the trading patterns and processes of Zhi Fubao and Cai futong and analyses legal problems and characteristics by contrast with foreign counterparts PayPal. In order to achieve the purpose of absorbing the advanced experience and promote the development of domestic third-party payment platform.The fourth chapter analyses the risks and consequences in the development of the third-party, including credit risk, legal risks, technical risk, industry policy risk, management risk and supervision risk in five aspects. Then detailed explanation of its causes and crux, from all aspects , in order to find out the legal problem.The fifth chapter is aimed to come up with some proposals for monitoring legislation. This part is focused on how to balance the risk, to protect the interests of both sides and to promote the development of the third-part payment platform in order to take effective legislative measures.By conclusion, this essay summarizes the new patterns of the third-part payment and its role in e-commerce, and points out that the third-part payment platform, although emerging not for a long time, function in a large scale and link with e-commerce closely and mutually, constituting the organic unity of the whole. Then, the essay makes the prospect of the future development of the third-part payment and supervising legislation.