A Research On Civil Liability In Credit Card Fraudulent Cases

With the development of credit card payment network,the credit card,as means of payment,has gradually become a part of people's daily life.However,it brings increasing credit card disputes,among which the fraudulent use of credit card is the commonest.In these cases,the persons who have used the credit cards fraudulently neither disappeared nor have no financial abilities,who is the right person to assume the loss of fraudulent use among all parties involved in a credit card transaction thus becomes a contentious issue.The general idea of this article is to firstly focus on the card issuers(“issuers”),analyzing the legal relationship between the issuers and the cardholders,between issuers and acquiring institutions(“acquirers”),and then make it clear that which party shall assume the loss of fraudulent use between the issuers,cardholders and acquirers.Secondly,where acquirers bear the loss of fraudulent use,to analyze the legal relationship between the acquirers and the merchants to confirm the bearer of the loss of fraudulent use.The first chapter is a summary of the fraudulent use of credit cards.Firstly,inthisarticle2 kinds of cases are discussed,the first is true cards fraudulent use and the second is fake cards fraudulent use.Secondly,to make a thorough check of the legal relationship between all parties involved in credit card transactions,this chapter introduces the process of credit card transactions and the parties involved therein.The second chapter to the fourth chapter is the main content of this article.Thesecond chapter mainly talks about the legal relationship between the issuers and cardholders.This article has examined the comparative legal opinions on the legal relationship between the issuers and the cardholders,and by collecting credit card contracts and credit card regulations of major domestic banks analyzed the respective rights and obligations of the issuers and the cardholders,and finally confirms that the relationship between the issuers and the cardholders is entrustment.As a trustee,the issuers must act on the instructions of the principal,i.e.,the cardholder,otherwise the issuers do not have the right to claim necessary expenses under the entrustment.The third chapter mainly focuses on the relationship between the issuers and acquirers.From analyzing the origin of the acquirers and the credit card association contract,this article confirms that the relationship is entrustment.The acquirers,acting as trustees,shall collect qualified direct purchases.Since the method taken by the issuers to verify the identity of the cardholders is cardholders' signatures,and the signatures are signed on the back of the credit cards and can easily be copied by someone else.Therefore,it is unfair to request the acquirers to collect absolute true direct purchases,what they can do is to perform its duty of care as a trustee.The author reviews the source of audit obligations,the content of audit obligations,the standards of audit obligations,and thinks that if the merchants have fulfilled the obligation of a good manager,the acquirers do not need to bear the fraudulent use loss;otherwise,they should assume the losses.The fourth chapter discusses on the legal relationship between the acquirers and the merchant.The credit card system itself requires credit cards to obtain cash-like status in actual transactions,and the acquirers' obligation owed to the merchants is not a supplementary obligation.Therefore,this article holds that there is an abstract debt promise between the two.In this way,if the acquirers bear fraudulent losses to the issuers because the merchants fail to perform the duty of care,the acquirers still need to pay the merchants for the direct purchases,but the merchants must pay the acquires for their damages.