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Beijing-based China Citic Bank is limiting monthly online credit card transactions through Chinese online-payments provider Alipay, the bank announced earlier this week. Monthly online transactions are limited to 1,000 yuan (US$146.30 or 112 euros), a Citic spokesperson tells CardLine Global. "The restriction is for reducing illegal cash advances using online credit card payments," Wenli Yuan, a senior analyst for United States-based research firm Celent LLC, tells Cardline Global. "However, the online payment operator and banks should have an effective way to reduce such illegal cases, otherwise it will result in termination of the collaboration between credit card issuers and third-party payment platforms." The bank spokesperson says the restriction is applicable to all of its credit card holders, except Citic Blue cardholders. That card does not feature a cash advance feature. Twelve Chinese banks have relationships with Alipay, including Minsheng Bank, Shenzhen Development Bank and China Industrial Bank. "Some banks have allowed AliPay payments only with their debit cards and some have also set monthly limits of 500 yuan per transaction," Yuan says.
