SEOUL, Sept. 20 (Korea Bizwire) – After holding talks with CEOs of credit card companies in July and August, the Financial Services Commission (FSC) publicly disclosed that modifications to payment processing procedures will be implemented.
One of the key points of the announced modifications is a system that will allow groups of restaurant-goers to split a bill. In Korean culture, at the majority of group meals — company meals in particular – the one who is oldest or has seniority foots the bill.
But in more informal settings, going Dutch generally entails diners lining up at the cash register and handing over their credit cards in turn while the cashier swipes one card after another. The proposed system will eliminate such inefficiencies by enabling one person to pay for the entire meal and transmitting a payment request to every diner through a smartphone app.
The described system will only work if all of the members of the group are holders of the same credit card, but that is expected to change as the FSC plans to work with the Credit Finance Association to tie in other credit card companies.
There is also the added bonus of income tax benefits for those who would use the new system.
Another key feature of the proposed modifications is a multi-functional prepaid card. Generally favored by university students, present iterations of prepaid cards are categorized into one of the three following categories: payment, withdrawal and wire transfer. The FSC’s decision to unite all three functions into one card is seen as an attempt to rebuff the encroachment of digital payment services like Kakao Pay and Naver Pay.
Starting next month, the FSC will expand the possibilities of credit card use in relation to vehicular cargo transport. Fees for cargo transport will be handled digitally through credit cards, which will help cargo companies receive their payments 20 to 25 days more quickly than before.
Cargo companies typically receive their payments in cash, which not only requires them to prepare tax invoices, but frequently delays payments by up to 30 days.
Other proposals included are measures to assist long term residents of foreign countries who are Korean credit card holders to apply for credit cards, and increasing the deadline for automatic foreclosure from three to six months for dormant credit card accounts that have been put on hold.