The measure is an attempt by China UnionPay Co Ltd to reduce obstacles to interbank transactions.

Many banks in Shanghai have relaxed the criteria under which the machines seize a card, especially cards from other banks. If a user enters the wrong pin number, the ATM will reject the transaction rather than seizing the card, according to some local banks

China UnionPay made the decision to avoid complicated procedures for returning seized cards, to improve bank card facilities and to facilitate interbank transactions, said He Bo, spokesman with the Shanghai branch of the Bank of Communications.

Transactions using defective or expired bank cards will be rejected by ATMs, while cards that have been reported lost or stolen will be seized, according to the China UnionPay Co Ltd.

To date, more than ten commercial banks and most financial institutes have joined the China UnionPay network. The 17 bank-card issuers affiliated with China UnionPay will establish a uniform standard for bank card use nationwide.

(Shanghai Daily March 21, 2003)