Research On Legal Risk And Supervision Of Online Third-party Payment

With the rapid development of e-commerce, as a financial innovation model,online third-party payment is on the rise. It is not only a kind of new economicplatform, but also providing high-speed channel flows for e-commerce. Because ofthe policy’s supporting and the efforts making by third-party payment, recent years,China’s online third-party payment market developed with highly speed. The marketscale for year2013has increased by46.8%, reached to RMB5,372,980,000,000.The people’s bank of China promulgated regulatory policy, and granted the third-partypayment licence. These signifies that the third-party payment has entered into a newstage. As the industry is becoming a big business, the competition is increasinglyfierce. The third-party payment started rather late in China, legal system is imperfect,while the weak sense of themselves and the lack of network security knowledge andskill can expose companies to. If government can’t worked against legal riskeffectively, it will damage the legitimate rights and interests of their clients. It willhinder the process of online third-party payment. Even legal risks will poses to thefinancial system as a whole. This paper from the legal supervision side, intend toimprove legislation supervision system, and improving health and ordereddevelopment of online third-party payment. There are four sections of this paper:In the first part, according to the law, this paper firstly introduces the concept andthe connotation of the online third-party payment. Secondly discusses the major modes: payment gateway, guarantee payment, and non guaranteed payment. Thirdlyanalyses the nature of the third party payment behavior, and discusses therelationship among sellers、buyers and bank, then defines the rights and liabilities.In the second part, this paper firstly introduces the development situation. Thendiscusses the legal risks from three levels: the cyber security risk, the national securityrisks, and the credit risks to consumers, then carries out some concrete cases. Thenational security risks conclude that the risk of foreign capital entering, cross-borderdeals, cash out and so on. The credit risks to consumers conclude that the risk ofprovisions, market exiting, right to know and right of privacy.In the third part, this paper comparative studies on legal supervision of domesticand abroad. Elaborating the Chinese’s law of online third-party payment from threeaspects: the legislation, regulatory regimes, and regulators. We can benefit from theexperience of America and European Union.In the fourth part, this paper making recommendations on legal regulatorysystem. On the concept of supervision regulation, the first priority should beefficiency, with due consideration given to equity. Then encouraging innovation andplaying the role of industry associations; On the legislation, improving the legislativelevel. View of the above situation, should be confirmed the ratio of foreign investment,and expanding International regulatory coordination, regulation of cash problems,improving the provisions for risk system, and establishingthe market withdrawal mechanism.