System improvement and standard agreement revision to protect financial consumer rights and interests
In the future, as “the name of the actual purchaser” is displayed in the card payment details, the inconvenience caused by the difficulty in knowing the transaction details of the existing consumer is expected to be resolved.
The National Rights Commission (Chairman Hyeon-hee Jeon, hereinafter the National Rights Commission), together with the Financial Services Commission and the Credit Finance Association, improves the standard terms and conditions for individual credit card members to protect the rights and interests of financial users.
With the development of information technology (IT), cards have brought convenience to life as a function of replacing cash. In addition, as the non-face-to-face consumption method has become a new trend in accordance with Corona 19, a wallet-free payment system is being settled in everyday life.
In this process, online shopping mall operators generally pay by card through a payment agency called PG (Payment Gateway)*, eliminating the hassle of having to individually sign a contract with a credit card company.
* (Example) Representative PG companies: Mobilians, Danal, KSNET, KG Inisys, KG All@, KCP, Nice, LG Uplus, Tospayments, etc.
However, with the exception of some credit card companies, there are many cases where only the PG company information, not the actual purchase company name, is displayed in the card payment details such as the bill of use, which caused a lot of complaints from consumers.
< 민원사례(예시) >
▪ Even if I look at the credit card details, I can’t remember what I bought with the name of the PG company, so I have to contact the credit card company by phone, which is very inconvenient.
▪ If you can find out by calling the credit card company or inquiring on the PG company’s homepage, we believe that the payment details can be sufficiently displayed in the card payment details, so rapid improvement is needed.
In accordance with the 「Specialized Credit Finance Business Act」, credit card companies receive and hold information on sub-affiliates* from PG companies, but consumers must go through the customer service center of the credit card company or PG company’s own website to confirm this.
* However, in case of going through several PG companies, the affiliate store information of the lowest PG company is not provided.
In a situation where micropayment fraud, which has recently impersonated a PG company, is pointed out as a problem, the non-marking of sub-affiliates increases the user’s anxiety about the soundness of financial transactions, such as concerns over card number leakage.
Accordingly, the National Human Rights Commission of Korea reviewed and analyzed complaints related to the method of displaying credit card payment details received in the National Shinmungo, and proposed a plan to improve the system and implement it to the Korea Credit Finance Association.
Specifically, it is improved so that consumers can check the company that purchased the product without having to consult with the credit card company’s customer center or access the PG company’s homepage. In addition, in the case of a multi-layered PG payment structure through multiple PG companies, information on sub-affiliated stores of the primary PG company (eg 00 Mart) and the headquarters of the secondary PG company (eg 11th Street, Interpark, open markets, Naver Pay, etc.) , Delivery apps, etc.).
The Credit Finance Association plans to revise the’Standard Terms and Conditions for Credit Card Individual Memberships’* by September of this year after consultation with related businesses and organizations based on the proposals of the National Human Rights Commission.
Kim Ki-seon, Director of Planning and Finance of the National Rights Commission said, “With this proposal for system improvement, we expect that the discomfort and anxiety of card users due to the spread of non-face-to-face consumption will be minimized.” We plan to analyze and actively improve.”
“This system improvement will contribute not only to the convenience of the people, but also to lower the risk of financial fraud,” said Kim Jong-hoon, head of the Small and Medium Business Finance Committee of the Financial Services Commission. “We will consider more system improvements to actively protect the people’s right to know and property rights.” Said.
Reporter Jeong Seok-cheol
Copyright © Gyeonggi Daily Unauthorized Reprint and Redistribution Prohibited