UnionPay is the major provider of credit and debit cards for customers in China. While UnionPay cards function much like other credit card transactions, there are some differences. UnionPay transactions are not enabled on your account by default, and require additional setup before you can process them.
Merchants interested in accepting UnionPay must be settling in USD, GBP, EUR, or CHF.
Transactions made with UnionPay cards require a verification step before they can be processed. At checkout, the customer will be prompted to enter their mobile number, and an SMS verification code will be texted to their device. Once they enter the SMS code, their card is verified and the transaction can be processed. Customers will need to verify each time they make a purchase, unless their UnionPay card is vaulted.
After verification, UnionPay transactions process much like regular credit and debit card transactions and typically settle within 3 business days.
The processing fee for UnionPay transactions is different than your normal rate. You can find the UnionPay processing rate on your pricing agreement. If you have any questions about UnionPay fees, contact our Accounts team.
The standard chargeback fee for UnionPay transactions is $25 USD – or the equivalent in your settlement currency – and is non-refundable. This fee is applied regardless of the outcome and includes pre-arbitrations.
UnionPay cards are compatible with most of our Basic and Advanced Fraud Tools.
There are certain UnionPay cards that do not have CVV numbers, and zip codes are rarely collected with UnionPay transactions. As a result, Braintree will bypass CVV and AVS rules for certain transactions to avoid unnecessary gateway rejections.
Due to the nature of UnionPay transactions and SMS verification, fraud is significantly less likely to occur with these transactions.
After the initial verification, vaulted UnionPay cards do not require SMS verification. We recommend vaulting so customers only have to verify their card with you the first time they place an order.
UnionPay is currently in beta. To make sure you’re eligible, contact our Accounts team.