Rules Governing the Administration of Electronic Payment Business Article 11

An electronic payment institution implement the user’s payment instructions to conduct automatic payment deductions relating to the business of collecting and making payments for real transactions as an agent or small-amount domestic and international remittances on the basis of prior agreement between the users and payment institution shall meet the following regulations:1. The procedures and amount limits for automatic payment deductions agreed by the parties in advance shall meet related requirements in these Rules and the Regulations Governing the Standards for Information System and Security Management of Electronic Payment Institutions. The transaction security design must be commensurate with the amount limits for different transactions.2. The electronic payment institution shall obtain payment instructions agreed by a user in advance in accordance with the regulations in the preceding article. It shall also determine the automatic payment deduction objectives and amount limit with the user and provide mechanisms for the suspension and adjustment of the authorized payment deduction amount. If the automatic payment deduction is executed with a non-specific amount, the electronic payment institution and the user shall specify a ceiling for the payment deduction amount.3. The electronic payment institution must evaluate the purpose, types, and risks of transactions of the contracted institution before it may provide a user with automatic payment deduction services based on the user and the contracted institution’s prior agreement.4. An electronic payment institution must verify the transaction security mechanism and transaction dispute handling process of contracted institutions before it may provide users with automatic transaction payment deduction service for a non-specific amount as described in Subparagraph 2.