Mon, Dec 03, 2018 - Page 16 News List

FSC mulls credit cards for online shop collection

PICK-UP POLICY:Banks believe that credit card use could increase the risk of money laundering, even if it would make things easier for convenience stores

By Kao Shih-ching  /  Staff reporter

The Financial Supervisory Commission (FSC) on Thursday said that it is considering allowing people to use credit cards at convenience stores to pay for the merchandise they buy online — once it finds a solution to eliminate the risks associated with money laundering.

People can pick up their online shopping at convenience stores, but they can only pay in cash, according to the regulations.

“It is hard for convenience stores, which help collect and transfer money for online shopping platforms, to conduct consumer due diligence, but banks think that this might create a loophole for money laundering,” Banking Bureau Deputy Director Sherri Chuang (莊琇媛) told a news conference in New Taipei City, adding that the use of cash bears less risk.

The commission has asked the Bankers Association of the Republic of China to consider the issue and find a solution to reduce the risk of money laundering, Chuang said.

The commission also said that people can again use credit cards to pay taxes, fines and utility fees at convenience stores, which was banned earlier this year due to concerns over money laundering.

The commission lifted the ban after banks said that the transactions bear little risk of money laundering, as their recipients are government or state-run companies, Chuang said.

The commission said it hopes to raise the penetration of credit card payments at convenience stores and expects to see their use in mobile payment.

The limit on cash payments at convenience stores is NT$20,000, but the restriction does not apply to people paying taxes, fines or fees using credit cards, the commission said.

Taiwanese have been allowed to use stored-value cards to pay fees since 2015, as these bear less risk, it added.

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