Appalicability

The acquirer applying should confirm their UnionPay membership and business license first.

- If they’re not a UnionPay member yet, they should join UnionPay as a member and apply for an Acquiring (POS/EC) business license.

- If they’re already a UnionPay member but don’t have a POS/EC business license, they should extend their POS/EC business license.

The issuer applying should be a UnionPay member with a credit card issuing license.

All institutions applying should implement an AML Program, follow due diligence procedures, and follow all requirements under applicable law.

Scenarios

1. Online (EC) installment payment

2. POS installment payment

Payment Flow

POS Installment Transaction Flow

The installment payment transaction flow is shown in the figure below:

The transaction flow details are described as follows:

①：Following the publicity guide or cashier’s prompt, the cardholder chooses to purchase goods or services from a merchant with the option of installment.

②: The cashier selects the installment option on the POS and/or MIS, and then selects the number of installments to initiate and sends the installment payment request to the acquirer’s system.

③: According to UnionPay specifications, the acquirer fills in the number of installments, installment payment commission fee rate, merchant installment allowance commission fee rate and other information, assembles the installment transaction message and sends it to the UnionPay system.

④: The UnionPay system checks the participants’ authority in installment payment, the installment fees and other information, and, if passed, forwards the request message to the issuer after checking the issuer’s validity.

⑤-⑦: The issuer obtains the final installment commission fee rate to be charged to the cardholder by subtracting the merchant allowance commission fee rate from the installment payment commission fee rate. Then the issuer fills  the result into the response message and responds to the UnionPay system.

The UnionPay system forwards the response to the acquirer respectively, and the acquirer forwards the response messages to the merchant.

⑧: For the POS installment transaction, the merchant POS prints the transaction receipt displaying the installment information and asks the cardholder to check and sign as confirmation. After that, the merchant should provide the service or goods to the cardholder.

⑨: According to the requirements of the issuer, the cardholder repays the principal and installment commission fee (if any) to the issuer as per the installment arrangement and schedule.

Online Installment Transaction Flow

The installment payment transaction flow is shown in the figure below:

The transaction flow details are described as follows:

①-④：The cardholder selects the goods or services on the merchant’s website, chooses UnionPay payment, and the merchant page will redirect to the UPOP payment page. On this page, the cardholder selects installment payment, puts in their payment information and submits the payment request. 

⑤：After verifying the merchant code, UPOP transmits the payment request to the UnionPay system. UPOP fills in the number of installments, installment payment commission fee rate, merchant installment allowance commission fee rate and other information in the installment payment request. After completing the verification of the issuer, the UnionPay system sends a request message to the issuer’s server.

⑥：The issuer sends a response message to the UnionPay system, and UPOP transmits the issuer’s response to UPOP.

⑦：UPOP receives the transaction result from the issuer and then transmits it to the acquirer’s system. Meanwhile, UPOP redirects the cardholder’s browser to the webpage indicating whether the payment has been successful.

⑧：The acquirer sends the transaction result to the merchant. 

⑨：Upon receiving the transaction result, the merchant should provide the ordered service or goods to the cardholder.

⑩：The cardholder should repay the principal and installment fee to the issuing bank on schedule.

Use Case

Features

Secure: With the “Merchant-Issuer” white list, UnionPay prohibits illegal merchants/acquirers.

Flexible: The UnionPay system supports up to 96 terms for the installment payment plan and any designated fee rates mutually agreed.

Easy access for customers: You can use an existing UnionPay credit card, meaning no extra application, and leading to higher checkout conversions.

More qualified customers for partners: Customers with credit cards usually have good credit and are more responsible to pay off.