Core Insights - The acquiring outsourcing service industry is facing an unprecedented compliance crisis, exposing risks to payment security, consumer rights, and financial stability [1][3] - Regulatory measures have been introduced to address industry issues, but a long-term governance mechanism is still needed to effectively tackle these problems [1][3] Regulatory Challenges - Recent regulatory actions target the root causes of industry malpractices, including credit card cash-out advertisements and the freezing of merchant funds due to multi-layer outsourcing [1] - Some payment institutions outsource core operations without establishing effective entry review and dynamic management mechanisms, leading to illegal transactions such as cash-out and money laundering [1][2] Outsourcing Risks - The pursuit of profit by some outsourcing agencies has led to dangerous practices, including incentivizing merchants through "distribution rebates" and "zero fees," resulting in a vicious cycle of poor quality driving out good [1][2] - The misuse of technology has exacerbated risk proliferation, with some aggregating payment service providers encouraging outsourcing through system loopholes [1] Governance Recommendations - A three-dimensional approach involving "regulation - institutions - technology" is essential for addressing the chaos in acquiring outsourcing [1][2] - Regulatory bodies should enhance penetrative supervision and connect outsourcing institution records with anti-money laundering systems for risk prevention [1][2] Institutional Responsibilities - Licensed acquiring institutions must take on primary responsibility and avoid a "hands-off" approach, implementing a "white list" system for outsourcing partners [2] - Regular assessments and on-site inspections of outsourcing institutions should be conducted to ensure compliance and technical capability [2] Technological Empowerment - Technology is key to improving governance efficiency, with regulatory bodies encouraged to establish information-sharing platforms for outsourcing institutions [2] - Acquiring institutions should leverage big data and AI to enhance risk control systems and monitor merchant transaction data in real-time [2] Future Outlook - The future of acquiring outsourcing services relies on a dual drive of compliance and innovation, necessitating a comprehensive regulatory framework [2][3] - Encouraging positive technological advancements can help shift outsourcing institutions from low-quality competition to high-value service innovation [2]