Third-party Online Payment Risk Control

In recent years, with the popularity of the Internet, E-commerce has been gradually entering people's lives. The development of E-commerce results in the prosperity of online payment. The third-party online payment, as the main form of online payment, has become the mainstream payment-pattern in the fields of B2C and C2C. While choosing the third-party online payment, online traders will take into account not only its convenience but also credit and security factors. As the substitute of credit system, which is lacked in our country, has been concerned by the society and focused on its risk. Therefore, the risk-control of third-party online payment is imperative.In this paper, based on the introduction of development, operating mode and character of the third-party online payment, we analyze the inevitability of the existence of third-party payment by relevant economic theory and confirm the results by simulations; use the principal - agent model to try to address the issue of the optimal incentive contract between the customers and the third-party online payment. From the process of the third-party online payment, we mostly study its risk problem in application, which mainly includes legal, financial, market, credit and technology, operational aspects, especially the serious legal risk and financial risk. To prevent the above risk, the main bodies of the third-party online payment, including supervising bodies, payment-enterprise, customers and bank, must be examined. Supervisors should encourage and support the third-party online payment industry on the one hand and on the other hand should formulate the corresponding measures for supervision. In the supervision, regulations and policies should be set up to improve market access and exit mechanisms, to determine the legal relationship between the customers and the third-party online payment enterprise, to foster a favorable social credit environment. First, the third-party online payment enterprise must improve its own competitiveness and market-viscosity all aspects; second, must set up a credit system, enhance its own credibility, perfect the authentication mechanism and strengthen the prevention of cheat, liquidity and money laundering; finally, must strengthen the training of internal-staff and security of the hardware and software operating-system. The bank should strictly check the quality and specific information of the third-party online payment enterprises and ensure to cooperate with the high quality one, while doing a good job at building their own security. The customers should rationally choose the payment- merchants and enhance their security awareness. The above ways should be mutually compatible and used together in order to promote the healthy and steady development of the third-party online payment.