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China approves American Express JV to set up clearing and settlement institution
Reuters ^ | Reuters

Posted on 11/09/2018 4:03:26 AM PST by JohnThree3to16

https://www.reuters.com/article/us-china-economy-americanexpress/china-approves-american-express-jv-to-set-up-clearing-and-settlement-institution-idUSKCN1NE0T7

American Express is the first foreign payments firm allowedto build a network in mainland China, months after Beijing laidout the rules for foreign-invested payment firms over marketaccess and supervision. The JV, named Express (Hangzhou) Technology Services Co, isrequired to complete operation preparations within a year andget a nod from the central bank before running the bank cardclearing business, the People's Bank of China said in astatement on its website.

(Excerpt) Read more at reuters.com ...


TOPICS:
KEYWORDS: amex; china; cryptocurrency; hangzhou
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Can some explain to me in terms of world economy I see this as a way to process financial transactions directly giving Chinese owned businesses direct access to US consumers without the need to go through the Central Bank of China?

I suspect this will minimize the effect of Chinese currency manipulation (under valuation) on the World Market?

1 posted on 11/09/2018 4:03:26 AM PST by JohnThree3to16
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To: JohnThree3to16

I think you have it backwards. This measure would put Chinese firms further under the thumb of the Bank of China.

If a US customer orders a product from a Chinese company, and pays by credit card, and there is no credit-card processing ability in China, then the payment goes into a US bank account owned by the Chinese firm. The dollars can then be transferred from the US bank to China. Or the company could perhaps want some of the money to stay in the US, out of reach of Chinese officials.

In the new system, the money goes to the Chinese banking system, where the government can more easily monitor and grab the money.


2 posted on 11/09/2018 4:30:08 AM PST by PapaBear3625 ("Those who can make you believe absurdities, can make you commit atrocities." -- Voltaire)
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To: PapaBear3625

Ugh. So the way you explain it this is not good for US consumers?

Wouldn’t the end result be reduced currency manipulation ?


3 posted on 11/09/2018 4:37:24 AM PST by JohnThree3to16 (http://www.freerepublic.com/focus/f-religion/3625817/posts)
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To: PapaBear3625

Who cares if the Chinese government takes the money after the transactions are complete goods or Services delivered etc.

The ability to trace the funds to the card holder will make it easy for fraud investigation complaints and shut down fraud quickly Agreed?


4 posted on 11/09/2018 4:40:49 AM PST by JohnThree3to16 (http://www.freerepublic.com/focus/f-religion/3625817/posts)
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To: JohnThree3to16

Mr Butterfield obtained the first contract for intercontinental mail. His stages carrying the Overland Mail traveled the Butterfield Trail from Memphis to San Francisco via Arkansas, Oklahoma, 900 miles of Texas, New Mexico, Arizona via Apache Pass to southern California then North.

The California route was subcontracted to Wells Fargo Co. Mr Butterfield’s company was called American Express.

A primary reason for the mail contract was to crry banking documents


5 posted on 11/09/2018 4:47:11 AM PST by bert ((KE. N.P. N.C. +12) Invade Honduras. Provide a military government)
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To: JohnThree3to16

If you pay by card, AmEx would be able to trace where the funds went. If they went to a US bank, it would be easier to make it cough back the money from a fraudulent transaction.


6 posted on 11/09/2018 5:15:29 AM PST by PapaBear3625 ("Those who can make you believe absurdities, can make you commit atrocities." -- Voltaire)
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To: PapaBear3625

So that sounds like a huge pro! Without that process in place fraudulent transactions could result in the Chinese government wiping out your back account as opposed to just racking up fraudulent charges on your Amex card which are easily investigated and have zero financial impact on the cardholder.


7 posted on 11/09/2018 5:48:56 AM PST by JohnThree3to16 (http://www.freerepublic.com/focus/f-religion/3625817/posts)
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To: PapaBear3625

Reversing a fraudulent credit card charge is not a refund of $$. It’s just canceling a transaction that has not resulted in a financial gain or loss to anyone.


8 posted on 11/09/2018 5:51:04 AM PST by JohnThree3to16 (http://www.freerepublic.com/focus/f-religion/3625817/posts)
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To: JohnThree3to16

The Chinese government would not have access to YOUR bank account. I was talking about the bank accounts of the Chinese vendors.


9 posted on 11/09/2018 6:00:00 AM PST by PapaBear3625 ("Those who can make you believe absurdities, can make you commit atrocities." -- Voltaire)
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To: JohnThree3to16
China last year already put strict limits on incoming international wires - to the point that any Chinese business selling internationally has to set up a Hong Kong office and bank account to accept payments from foreign entities larger than about $3,000 USD.

Maybe China is afraid that villains like Soros and Steyer and Prince Alwaleed are trying to buy their elections - or fund subversive movements using international wires disguised as merchandise purchases?

Anyway, China's central bank has powers the Fed can only dream about - so look for these kinds of restrictions to eventually come here under the benevolent rule of Speaker Pelosi.

10 posted on 11/09/2018 6:08:49 AM PST by Mr. Jeeves ([CTRL]-[GALT]-[DELETE])
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To: Mr. Jeeves

“Maybe China is afraid that villains like Soros and Steyer and Prince Alwaleed are trying to buy their elections - or fund subversive movements using international wires disguised as merchandise purchases?”

American Express is already a Globalist Communism supporting corporation. If anything they will be laundering funds for China.


11 posted on 11/09/2018 6:24:03 AM PST by Openurmind
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To: Openurmind

Politics aside

American Express has the best customer service of any credit Crédit card in my wallet. For THIS reason I use it for every purchase in my family. I am happy to refer any FReeper for an account. I get points for those referrals. ;)


12 posted on 11/09/2018 7:39:59 AM PST by JohnThree3to16 (http://www.freerepublic.com/focus/f-religion/3625817/posts)
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To: JohnThree3to16

There is no such thing as politics aside when you are personally financing Communism no matter what kind of bribery deal you are presented with, you are being played the fool. Supporting them is FINANCING THEIR POLITICAL AGENDA.

See... This is why we have all these problems in this country. We allow our own current short term selfishness to override our own principles that could make a difference to better serve our Great Grandchildren.

Until we actually make a firm stand on principles against those who are funding our own demise we will keep losing our Grandchildren to the Communist Globalists. Good for you... Your current gain will be your Grandchildren’s loss.

Besides they are arrogant as hell with their vendors who accept their cards. They charge almost double the rate for businesses like my own just to ACCEPT their card, and then they tried several times to tell me that if I want to accept Amex I have to stop accepting all other cards.

Who the hell do they think they are? I refuse to kiss their rear to take their card. Bye...

Nothing gives me more pleasure than to tell Amex customers that their dirty money or business is absolutely no good to me, I will go broke and shut down before I ever take an Amex card again based on just their arrogance towards vendors alone.

I look forward to this every morning... It is one of the very few things I can directly do to help fix this country as a patriot with principles. Now if more felt as strong as I do we could actually put this agenda in check.

Next is doubling my prices and then offering a 50% discount for patriots who can prove this. My customer base is just about to become very politically selective...


13 posted on 11/09/2018 8:30:57 AM PST by Openurmind
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To: Openurmind

Thank you for the thoughtful response. May I ask what credit card if any would make a person more patriotic? No being sarcastic with this question

Using AMEX means you actually have the money to pay cash but choose to use charge card for several reasons to include the “points” and customer service etc etc.


14 posted on 11/09/2018 11:10:07 AM PST by JohnThree3to16 (http://www.freerepublic.com/focus/f-religion/3625817/posts)
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To: JohnThree3to16

And thank you for being patient with my very strong feelings here. As a vendor I have been battling the Amex arrogance for over 35 years and have come to hate them. Enough so that I did the research to chase down their deceptive dealings and associations which are not at all loyal to this country.

Unfortunately this is the problem with all the banks who own credit cards. They are all now tied in with the globalists. But they have me over the barrel as a vendor because the masses have been fooled into being dependent on credit cards. But at least the others only charge me half as much as Amex to take their cards at my business. All but Amex are a little more on the realistic, fair, and competitive side of the industry.

I have to be honest and say that I personally no longer use credit cards. I have no trouble sacrificing a little convenience and a few customer perks to not be forced into and support the “3rd party” credit card scam.

These companies are trying to force a credit card only currency on us all and I will not capitulate and help facilitate this agenda to make everyone dependent on a 3rd party currency. I refuse to let them bribe me into this dependency on them.

Want to be Patriotic? Use cash or checks only and tell the card companies to shove their bribes. I also offer discounts for cash, it is once again time for more conservative business owners to do this and put a stop to these greedy credit card companies. Just like the unions and environmental groups these companies donate, lobby, and support almost solely the communist party.

We are stepping on our own toes when we support these folks... We are indirectly donating to the communist party. And now it looks like Amex will even be supporting the Chinese communist party and laundering their assets. This means through Amex, China will now have even more political lobbying power here.

Sorry, but this seriously bothers me as a Citizen and Patriot.


15 posted on 11/09/2018 1:30:33 PM PST by Openurmind
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To: Openurmind

I sincerely appreciate the discussion. I posted this because I really am interested in the politics of the financial services industry to include digital currency such as BTC and many others emerging. The world currency is going to be some sort of digital account with biometric validation etc. We are rapidly approaching that. The problem with cash transactions is that mere possession of cash or even checks have inherent security concerns.

The ability to deal with fraud when using cash is challenging for both the buyer and the vender. Using American Express charge card I have great comfort in knowing that if I am a victim of fraud or wish to dispute any transaction for any reason and the merchant suddenly is unreachable or unwilling to make it right. I can simply dispute the charge and if a merchant has too many similar disputes their merchant account is likely to be suspended or revoked. Does that make sense? I get that the merchants feel like the fees charged by American Express are higher than the industry standard but I also know I am likely to choose a vendor who will accept my AMEX card even if that merchant charges more. I have found for the most part when I pay with my AMEX platinum card the quality of service is often higher than average. Particularly at restaurants as I often am more generous at tipping as is most platinum card holders I suspect. I am also sensitive to that fact that the merchant is probably willing to pay the higher fees on order to attract platinum card holders knowing that the points I earn is proportional to the amount set and I am willing to pay more for better quality of both product and service.


16 posted on 11/09/2018 3:33:50 PM PST by JohnThree3to16 (http://www.freerepublic.com/focus/f-religion/3625817/posts)
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To: JohnThree3to16

Another practice I have especially in services. I will often pay the bill with my AMEX card and leave additional gratuity in cash to a server who has provided exceptional service or a server that I sense would appreciate the cash tip.


17 posted on 11/09/2018 3:43:46 PM PST by JohnThree3to16 (http://www.freerepublic.com/focus/f-religion/3625817/posts)
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To: JohnThree3to16

I appreciate the dialog also friend. I full well understand the convenience and advantages offered. But some principles are much much more important than convenience. It can even be said to be Biblical. The change to digital will only happen if we allow it.


18 posted on 11/09/2018 4:13:59 PM PST by Openurmind
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To: Openurmind

Digital currency using block chain technology is inevitable simply because it eliminates any governments ability to artificially increase the supply of currency in circulation. Also, it allows very low cost “cash” transactions using any “brand” of crypto currency in which the exchange rate of that currency is known by both the payer and payee in real time at the moment of the transaction.


19 posted on 11/09/2018 8:39:05 PM PST by JohnThree3to16 (http://www.freerepublic.com/focus/f-religion/3625817/posts)
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To: JohnThree3to16

Now we are discussing currency rather than philosophy. Digital block chain currency is not tangible, requires electricity, can be hacked, or become worthless overnight. And just like any other product the cost to produce it can finally exceed it’s value. It’s close to this right now.

For long term stable value physical gold and silver is the only safe way.


20 posted on 11/10/2018 5:48:29 AM PST by Openurmind
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