Pricing And Regulation Research On Acquiring Market In Chinese Bankcard Industry

With the rapid growth of non-cash payment transactions, bankcard issuance volume continues to grow steadily, and acquiring market is improved significantly, the awareness of consumption by bankcard being growing. The volume of bankcard business maintains substantial growth, which has played a positive role in accelerating the flow of social capital and improving capital efficiency. However, there have been many controversial issues, thus the research of bankcard industry has practical significance. The development of bankcard industry will facilitate people's life, which also is conducive to the construction and consummation of Chinese National Advanced Payment System.In the current operating mechanism of bankcard industry, the pricing level and distribution mainly reference the PBC's 126 date file. Although regions adjust measures to local conditions, combining the actual condition of local bankcard industry to pricing, the PBC's 126 date file is still the standard of pricing and distribution, which has a profound impact on the bankcard industry. Merchant dividing in the PBC's 126 date file, especially the" 7:1:X" distribution method, is an important symbol of the development of bankcard industry. This system is in favor of the construction of acquiring market and profit pattern, which gives sufficient incentives to develop the market and provide specialized services. However, the system has been overlooked the historical elements of acquiring market and the effect of the sense of "heavy issuing, light acquiring", thus acquiring bank is at a disadvantage while negotiating with merchants.By the analysis of the current situation of the acquiring market, we find that market conditions is being significantly improved, and trading has beening expanded rapidly. With the habits being formed and the amount increasing on bankcard consumption, the bankcard payment functions have beening improved effectively. But at present, there are many problems in acquiring market, such as uneven development, low professional levels, and non-standard management, which severely limit the acquiring market development.To solve these problems, we need to understand the pricing of Chinese bankcard industry firstly. By the analysis of operation mechanism in the third part of paper, we can get the differences between proprietary systems and not-for-profit systems, and the pricing methods which make profit-maximization and welfare-maximum are available. And also we realize open system (such as China Unionpay) need to seek a conspiring to balance mechanism, so as to dissolve the external effects and maintain the stability of bankcard industry. Research shows that pricing in Chinese bankcard industry and exchange fee mechanism in foreign country are very close, and the acquirer should have sufficient incentive to develop the acquiring market. However it doesn't promote the development of professional services, then the acquiring market is being the state of market failure. On the basis of the market failure, this paper researches on pricing and regulation in depth.To explain why acquiring bank is being market failure, based on theoretical model research, this paper makes an investigation of pricing with using two-sided market theory. The study indicates that the pricing is unscientific and lack of network externalities, consumption habits factors. According to Chinese special status, Unified pricing and discrimination pricing can't mix simply and need to consider more influencing factors. In order to validate the theoretical study, the fifth chapter demonstrates the above analysis scientifically by using system empirical methods based on measurement and case studies. Then it shows that bankcard industry is typical of two-sided market, while Chinese bankcard industry does not strictly one. It also suggests that the development of bankcard industry will be affected by the economic development level and the habit of bankcard consumption.In order to promote the development of the acquiring market and effectively govern the market failure, the paper researches the regulation of acquiring market in depth. Firstly, it reviews current theoretical research about the regulation. Secondly, this paper analyzes the development of typical countries regulation and generalizes regulatory model of the mature acquiring market. According to the specificity (such as scale and competition) of acquiring market, then the paper focuses two groups of contradictions (that are specialization and efficiency and competition and scale) on further regulation research, so that it can promote the development of the acquiring market, and even the entire bankcard industry. The paper shows that we should strengthen the acquiring market regulation, moderately relax the regulation of interchange fees, and at the same time, improve industrial policy support, in order to push forward the development of acquiring market.