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Variable authentication code
A variable authentication code is an encrypted code obtained by inputting elements on a bank clearing voucher into a special calculator. It replaces the traditional authentication stamp as an effective payment instruction given by the voucher drawer. The authentication code randomly varies based on dimensions on the bank clearing voucher.

1. Advantages of variable authentication code
1) Protects customers' fund from fraudulence.
2) Facilitates the payment process.
3) Enables modern payment tools such as universal deposits and withdrawal, and telephone banking.

Authentication stamp

Variable authentication code

1           Easy to fabricate or lose

2           Difficult to authenticate

3           Only acceptable for the opening bank

4           Unable to deposit and withdraw universally

5           Non-confidential and weak security

6           Outdated

1           Cannot be fabricated

2           Easy to authenticate during the decryption process

3           Widely applicable at any branch

4           Universally applicable in networked areas

5           Confidential and strong safety

6           Reflects future trends

2. Characteristics of CMB's variable authentication code
1) Strong security
CMB's variable authentication code system is underpinned by the latest IC card and encryption algorithm to prevent code fabrication.
2) Universal availability
Unlike other domestic systems, CMB's IC-card-based variable code system is the only one that allows users to use CMB IC cards on any CMB variable code calculator.
3) Multi-functionality
A. Variable encryption
B. The code calculator, IC card and code can be managed by different people to enhance financial supervision.
C. Codes can be modified at any time to ensure security.
D. If required, a signatory can give the IC card to an authorized user, set the authorization code to prevent unauthorized use, and cancel authorization at a later time.
E. The code calculator can be used as an ordinary calculator.
F. The system provides a user-friendly interface in Chinese.

3. What is a universal deposit and withdrawal for bank settlement?
The universal deposit and withdrawal for bank settlement enables a company with a CMB deposit account to settle payments at any CMB branch. If both the payer and payee have CMB accounts, the money transfer is made and recorded simultaneously for both parties.

4. Which settlement businesses is it applicable to?
1) Cash payment collection and withholding (you need to apply for this service at your account opening bank to make large payments);
2) Collection of transferred money and withholding;
3) Mail transfer and telegraphic transfer
4) Endorsement of bank drafts;
5) Third-party account keeping;
6) Entrusted payment collection and payment business

5. Advantages of universal deposit and withdrawal
1) Increases funds turnover and utilization rates. The latest electronic settlement systems minimize transfer time, enabling receivers to use their funds immediately.
2) Enables customers to make and receive payments at the nearest branch rather than having to go to their account opening branch, and removes customers' concerns about verifying payment vouchers and stamps, and whether the payment account has sufficient funds.
3) Implements the variable code based voucher verification, which eliminates transaction record errors, over-drawing, and payment settlement mistakes.

6. Who can apply for universal deposit and withdrawal?
Administrative authorities, groups, enterprises, public institutions and individual businesses with CMB deposit bank accounts can apply for and use accounts with variable code authentication to the enjoy universal deposit and withdrawal service.
Customers using stamp authentication cannot use this service, and must go to their account opening banks.

7. How do I apply for variable code authentication?
1) Obtain the Application for CMB Variable Code Authentication and Agreement for the CMB Variable Code Authentication Service at your account opening branch.
2) Fill out the application form and agreement. The branch will review and approve the application.
3) Collect the code calculator and IC card from your account opening branch within the required time limit.

8. How is the settlement voucher different after using variable code authentication?
The variable authentication code is a 10-digit number. To fill out a payment voucher, the customer must fill the calculated 10-digit number in the box on the voucher. The voucher should also be sealed with the administrative or fiscal stamp, and the legal or authorized representative's stamp (with name inscribed). However, these stamps are not a basis for a payment from the bank.

9. What are the accounting principles of universal deposit and withdrawal?
Universal deposit and withdrawal is handled based on account numbers. Therefore, customers must check the account numbers of payees and payers when filling out vouchers to ensure that the transfer is smoothly processed.

10. How do I get the receipt and check sheet? How do I check my balance?
• As the receipt for universal deposit and withdrawal is not sent to your account opening bank, you cannot collect the original receipt at account opening banks. Generally, you will receive the original receipt immediately after the transaction. If not, you can obtain a copy at your account opening bank.
• However, you can only collect the check list at your account opening bank.
• After the transaction, you can use CMB's telephone banking and online corporate banking systems to check your balance. You can also check your balance at the account opening bank.
• However, you can only collect the check list at your account opening bank.
• After the transaction, you can use CMB's telephone banking and customer service terminals to check your balance. You can also check your balance at the account opening bank.

11. How do I apply for the variable code calculator if I’ve opened several accounts at different branches?
In this case, you still only need one variable code calculator. However, you must have an IC card for each customer number. Each IC card corresponds to three accounts at most. If you have applied for the calculator and an IC card at a CMB branch, you only need to apply for another IC card at another CMB branch.

12. What do I do if my calculator or IC card is damaged, stolen or lost?
• If your calculator or IC card is damaged, you should apply for a new one as soon as possible at the bank where you applied for the original. You must also return to damaged card and calculator to the bank.
• If your card is stolen or missing, you should immediately report to any CMB branch for the missing. You are liable for any losses caused before you have reported it.

13. How do I enhance fiscal management after using the variable authentication code?
1) The CFO should keep the code.
2) An accountant or cashier should keep the IC card.
3) Vouchers and settlement stamps should be kept by another accountant.
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.