Business Operations & Operating Results
Credit Card Issuing Business of NCCC Members
NCCC member institutions have issued U Card, Visa, MasterCard, and JCB cards. The card issuance continued expanding sharply in the wake of matured consumer banking environment, rising consumer demand, coupled with market promotion and cardholder solicitation by the NCCC member institutions. Until the recent years, the increase of cards issued has been slowing down, and the number of cards in circulation has been growing at a steady pace.
U Card, VISA, MasterCard, and JCB Card issued by NCCC member institutions.
《Operating Results in 2017》
Accumulated Number of Cards in Circulation: The number of cards in circulation of NCCC Members was 36,526 thousand in 2017, an annual growth rate of 3.07%, compared to 35,438 thousand in 2016, accounts for about 87.5% of the total number of cards in circulation. Number of cards in circulation refers to number of cards issued minus cards cancelled and the card accounts maintain a normal status
Installment Payment Operating Platform
In response to the market needs, NCCC developed a common operating platform for both the card issuing institutions and their installment payment merchant partners in 2004. Those merchant partners who link to the NCCC platform system can provide online installment payment service function that allows the cardholders to pay off the transaction bill in several times for one transaction amount.
The installment payment operating platform service applies to those card issuing institutions and merchants who participate the platform.
《Operating Results in 2017》
(1) Transaction Volume：The total installment payment amount summed to NT$125,800 million in 2017, increasing 2.4% compared to NT$122,800 million in 2016.
(2) Transaction Numbers：The total number of installment payments was 12,945 thousand in 2017, decreasing 6.2% compared to 13,748 thousand in 2016.
The average transaction amount of installment payment is gradually increasing. The result represents that cardholders tend to pay in installments with higher transaction amount, which is shown below:
Credit Cardholders Online Transaction Authentication Service
To enhance credit card online transaction security and strengthen cardholder services, NCCC has implemented “Access Control Server (ACS) Authentication Service for Online Transaction Security” that enables the cardholders to make online purchase transactions in a more secure environment through identification enrollment and password verification processes. The Access Control Server (ACS) Authentication Service platform, passed examination by Visa designated qualified Security Assessor, provides a wide applied online transaction authentication system supporting 3 card brands of VISA Verified by Visa, MasterCard SecureCode and JCB J/Secure.
Credit Card Purchase Transaction Benefit Platform
To meet the market needs, NCCC created a credit card purchase transaction benefit platform in 2014, providing transaction benefit promotion program for the card issuing institutions and merchants. When the credit cardholders make purchase transactions at merchants, the transactions will be immediately checked against the benefit terms and be exchanged for the benefit via the platform and point of sale terminal, which can simplify operations, leverage marketing resources, and further increase customers along with sales volume. The credit card purchase transaction benefit platform service applies to those card issuing institutions and merchants who participate the platform.
Credit Card ATM Cash Advance
NCCC established a credit card cash advance network and has partnered with the participating institutions to provide ATM cash advance transaction service to the credit card holders. The cardholders can use credit cards of U Card, Visa, MasterCard, JCB, and AmEx to make cash advance transactions by entering password at those ATMs on which a “NCCNET Plum Blossom” sticker displayed (as below). The business scope includes the following:
(1) Domestic ATM cash advance transaction service on NCCC value-added application platform.
(2) ATM transaction switching service for foreign Visa PLUS Card
(3) ATM transaction switching service for foreign MasterCard Cirrus Card
Bonus Point Accumulation & Redemption
NCCC created a bonus point accumulation and online redemption platform for the card issuing institutions. The participating merchants linked to the NCCNET POS network can provide online redemption function that enables the cardholders to immediately redeem the bonus points accumulated to the transaction amount when paying for purchase.
Government Fee Payment
To increase the penetration rate of electronic payments and to expand the credit card acceptance channels, NCCC established a “Credit Card Payment Platform for Public Agency Fee” allowing the general public to pay government bodies related fees and bills over the counters by credit card. The payment platform also applies to public hospital’s related medical service fees (not including plastic surgery, postnatal nursing and physical examination). To provide more payment channels to the people, it is also planned to add online payment and mobile APP functions onto the platform; thus, enabling the general public to experience the convenience of mobile payments at various channels.
To coordinate with the government policy of bringing greater convenience to the people and to provide incremental service functions to the credit card issuers, NCCC has partnered with Chunghwa Telecom and motor vehicle administration bodies in providing the general public with fee payment services, where people can use credit card to pay school registration fee, public service related charges, motor vehicle administration fees and various types of taxes by obtaining transaction authorization via phone voice operating system or via Internet. The business scope includes the following:
(1)E-government service platform: including “school registration & miscellaneous fees” and “on-campus administration affairs fees” charged by all levels of schools as well as public service related fees charged by all levels of government bodies who participate on the e-government service platform.
(2)Motor vehicle administration fee: including traffic violation fine, fuel fee, handling fee, license plate fee, license plate number selection charge, etc.
(3)Various types of taxes: including payments of Individual Consolidated Income Tax, assessed tax, as well as business tax, etc.