Chinese State-owned Commercial Bank Credit Card Anti-fraud Strategy Is Discussed

Being a new type of payment instrument and means of credit, the credit card is the combination product of banking business and modern technology. It is characterized with settlement, consume loan, and convenient, liable and efficient in utility, therefore is widely welcomed by consumers. By issuing credit card, commercial banks can gain interest, business commission, penalty fees, annual fees and enhancements. It is one of the most profitable financial products in banking management.Nowadays, with the prosperous development of domestic credit economy, the domestic commercial banks expand their business on retail bank, especially on the credit card. The competition of commercial banks is more drastic than ever before. As the credit card's scale expand fast, the amount and money of credit card's trade grow quickly, the issuer, the acquirer, the bank card organizer and the monitor organ pay increasingly attention to credit card's risk management.Credit card risks can be divided into credit risk, fraud risk and operation risk. Many factors demonstrate, the 90 percent of risk loss is caused by credit risk. The 7-9 percent of risk loss is caused by fraud risk, the remainder risk loss is caused by operation risk. With the technology progress and business experience enrich, operation risk is reducing but credit risk and fraud risk is growing up.This article starts from the point of promoting the development of credit card, uses domestic and foreign theories and methods of credit card risk management for reference, combines with the actual situation of commercial banks of China, by using methods of historic analysis, comparative study, aiming at fraud risk, to analyze and discuss about the existing problems and resolving methods in the practical work of our credit card risk management. Hopefully this article can contribute to commercial banks of China's credit card risk management.