• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

China in new UnionPay crackdown: reports

Dec 11, 2015 Newsdesk Latest News, Macau, Top of the deck  


China in new UnionPay crackdown: reports

China UnionPay Co Ltd – which operates an interbank transaction settlement system for cash payments – has issued a memo ordering a clampdown on illegally modified point of sale (POS) units, report media outlets in Hong Kong and the mainland.

The crackdown is said to have been ordered by China’s financial regulators and the Ministry of Public Security. It will involve the registering and auditing of such devices, and penalties for any failure to comply with the new rules.

There have been reports of POS devices registered for use only on the mainland being rigged to conduct transactions in Macau. Such business is recorded in the mainland’s UnionPay network as domestic, thus avoiding higher fees applicable for cross-border payments.

In 2014 the value of detected transactions using unregistered China UnionPay terminals in Macau amounted to MOP784 million (US$98.2 million at current exchange rates), Portuguese news agency Lusa reported in March, citing Macau police sources.

Brokerage Sanford C. Bernstein said in a note on Thursday: “The new policy of registering and auditing POS devices may be an incremental headwind to Macau GGR [gross gaming revenue], in particular VIP and high end of premium mass.”

The note from the institution’s analysts Vitaly Umansky, Simon Zhang and Bo Wen stated: “In August 2015, Macau police arrested 17 people using mainland POS devices to help gamblers cash out. The individuals were accused of illegally modifying 11 UnionPay POS devices to process unauthorised dealings that appear as mainland transactions.”

The brokerage noted the ‘customers’ were charged only RMB26 (US$4) per transaction, instead of paying the 1.4 percent of the transaction value Macau’s official UnionPay trading platform would have charged.

Sanford Bernstein added: “At this stage, purchase transactions (i.e., pawnshops) via UnionPay are not impacted. In Macau, pawnshops are often used to bypass UnionPay cash withdrawal limits. The pawnshop transactions are legal in Macau and occur through approximately 200 shops. However, there is risk that Chinese authorities may pressure Macau into creating tighter regulations around pawnshops.”

In September, mainland Chinese media reported that China’s State Administration for Foreign Exchange – also known as SAFE – announced new annual limits on automated teller machine (ATM) cash withdrawals made outside mainland China using UnionPay-enabled bank cards.

According to the reports, with effect from January 1, 2016, each UnionPay-enabled card will have a new, annual, cash withdrawal limit at overseas ATMs of RMB100,000 (US$15,714). Prior to that, with effect from October 1, 2015 until December 31, 2015 there is a RMB50,000-per-card ATM cash withdrawal limit, it was additionally reported.


  • tweet
Related articles
  • Macau GGR tax cut idea tied to China outlook: brokerage
    Macau GGR tax cut idea tied to China...

    May 23, 2022  

  • Macau repeat visitors denied visa by China says Bernstein
    Macau repeat visitors denied visa by...

    May 16, 2022  

More news
  • Leisure and Resorts 1Q loss widens as costs rise
    Leisure and Resorts 1Q loss widens as...

    May 25, 2022  

  • Macau unemployment an instability factor to security: govt
    Macau unemployment an instability...

    May 24, 2022  


Latest News

Leisure and Resorts 1Q loss widens as costs rise

Leisure and Resorts 1Q loss widens as costs rise

May 25, 2022  

Philippine gaming investor Leisure and Resorts World Corp reported a net loss of nearly PHP222.4 million (US$4.2 million) in the first three months of 2022, up from PHP125.6 million a year earlier....
Read More
Macau unemployment an instability factor to security: govt

Macau unemployment an instability factor to security: govt

May 24, 2022  

Wynn Macau Ltd asks managers to take 10pct wage in stock

Wynn Macau Ltd asks managers to take 10pct wage in stock

May 24, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”If China’s travel easing gets delayed to the second half of 2023 [Macau operator’s aggregate net debt] could rise another US$2 billion, to US$27 billion by end-2023"

Praveen Choudhary, Gareth Leung and Thomas Allen

Analysts at Morgan Stanley banking group



Most Popular

  • Wynn Macau Ltd asks managers to take 10pct wage in stockWynn Macau Ltd asks managers to take 10pct wage in stock May 24, 2022
  • Macau GGR tax cut idea tied to China outlook: brokerageMacau GGR tax cut idea tied to China outlook: brokerage May 23, 2022
  • Macau op debt to hit US$25bln unless travel eased 2H: MSMacau op debt to hit US$25bln unless travel eased 2H: MS May 24, 2022
  • Review saw no irregularity in Levo Chan link: Macau LegendReview saw no irregularity in Levo Chan link: Macau Legend May 23, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us