China has softened their long-held grip on the credit card payment market. While China still has a long way to go in terms of reaching the USA’s credit freedoms, this change can help ease trade talks and even help foreigners living in China. This is not only big news for those in China, but in the USA, as well.
China’s State Council announced that this change “qualified domestic and foreign firms can apply to set up bank card-clearing operations, a process that involves settling payments between banks and vendor”, which is something that American businesses have done for decades.. This helps out American credit cards Visa, MasterCard, and American Express hop into the lucrative Chinese market. Currently, Chinese-based UnionPay Co. has a stronghold on the market, but that is likely to change.
This may seem like a minor issue with American businesses, but this is a major deal. The USA already has massive trade dealings with China, and now, thanks to this loosened credit card regulation, merchants are on the verge of doing business with Chinese consumers. Online sales are steadily rising in China, and the usage of Visa, MasterCard, and American Express cards can help put money in American merchants pockets. While this is a fantastic venture, merchants who wish to do business with Chinese consumers need to make sure that their merchant account processor is up to task.
Every merchants, regardless of their industry, needs the services of a merchant account processor. A merchant account processor helps you accept plastic card payments. A reliable merchant account processor, such as eMerchantBroker.com, can help you navigate the murky waters in the new Chinese marketplace. While some American companies already do business with Chinese consumers, they have had issues securing a merchant account, and have relied upon “high risk” processors, such as the aforementioned eMerchantBroker.com. This is still a great idea to check out, and high risk processors are experienced in the ins and outs of tricky business ventures.
China has finally softened their stance on American-centered plastic payment cards. This brings a wealth of new business to China, as well as to the USA from Chinese consumers. While money flowing is great, American merchants need to be sure that their merchant account processor is ready for this new influx of foreign business.
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