In response to the burgeoning development of the e-commerce market, on November 1 the Executive Yuan announced a relaxation of the rules governing third-party payment services to allow consumers to carry out transactions with small businesses through online credit-card payment. This will bring more business opportunities to small shops and individual sellers.
Most individuals and small shops selling online are unable to offer credit-card payment services because of their small scale of operation, so that buyers have to pay through the transfer of funds. Even those sellers that cooperate with third-party payment service providers are restricted by the inadequacy of financial institutions and laws. Payments are received only after one or two months, and this cash turnover period is too long for the businesses involved.
The Executive Yuan has relaxed the rules for credit-card transactions using third-party merchant account services, not only enabling existing merchants to provide credit-card payment service, but also solving the difficulty of small merchants and individual sellers not being able to provide credit card service because of having too little capital. This relaxation will be conducive to the growth of consumer-to-consumer (C2C) e-commerce transactions.
In the future, banks will be able to evaluate the risks and make their own decisions as to whether to sign contract-store agreements with third-party payment service providers. Businesses that are qualified contract shops will be able to request payment from acquiring banks under the authorization of member buyers, and then turn the funds over to the sellers.
The Executive Yuan indicates that a safe and convenient online payment environment is the key to the success of e-commerce, especially C2C e-commerce that involves small shops and individual sellers, and that third-party payment services have become an indispensable tool for secure payment. In addition to providing a greater diversity of payment options, the loosening of the rules on third-party payment services will strengthen the reliance of consumers on online transactions and stimulate the further development of the e-commerce market.