UnionPay is committed to working with our partners to ensure the delivery of a safe and compliant transaction in the payment system.
Recently, UnionPay has observed a significant increase in overseas insurance transactions by cards issued from mainland China. In order to strengthen the acceptance of such transactions by cards issued from mainland China we have issued The Compliance Guidelines for Overseas Insurance Merchants Accepting UnionPay Cards Issued in Mainland China (hereinafter referred to as The Guidelines). The Guidelines reemphasized the relevant regulations and business rules to ensure proper use of UnionPay cards issued from mainland China at overseas insurance merchants.
The Guidelines have been issued in Hong Kong and are applied to the acceptance of UnionPay cards issued from mainland China at overseas insurance merchants via POS terminals, Internet and mobile channels. The main contents of The Guidelines are: Firstly, all UnionPay cards issued from mainland China are allowed to use to buy pure insurance products (accidents, deaths, and illnesses), but are not allowed to buy any insurance product includes investment-related contents. Secondly, according to the Foreign Exchange Regulation Policies issued by the Chinese authorities, a single transaction of UnionPay cards issued from mainland China that is allowed under this policy at overseas insurance merchants is capped at the equivalent of 5,000 USD. Thirdly, overseas acquirers are required to strictly supervise insurance merchants relating to cards issued from mainland China by strengthening training for insurance merchants, and adhering to the Guidelines on abnormal transaction detection and merchant inspection.
UnionPay International will continue to provide payment services at overseas insurance merchants while complying with the regulations and laws issued by relevant authorities.