SEOUL, Aug. 31 (Korea Bizwire) – It was reported that e-commerce transactions is possible only by typing in one’s username and password as early as late September or as late as early October, as currently available with two e-commerce platform providers: PayPal, an international e-commerce business allowing Internet payments and money transfers, and Alipay, a Chinese leading third-party online payment solution.
The Credit Finance Association of Korea (CREFIA) announced on Aug. 29 that it will revise the affiliates’ standardized agreements in order for a payment gateway to collect and keep membership holders’ credit card information.
It aims to advance payment transactions for the Korea’s e-commerce and provide convenient payment services.
Now PayPal and Alipay are providing customers with handy services through which they keep credit card numbers and their expiration date and the customers can make online payments with their username and password.
To date, in Korea it has not been allowed to keep credit card numbers and the relevant information that can be acquired in the process of online transactions. However, it is expected that a payment gateway will be able to collect and keep credit card numbers and their expiration dates under the membership holders’ consent.
To protect against information leakage, CREFIA will allow only a payment gateway that meets the criteria in financial stability and cyber security so as to keep the customers’ information.
Moreover, CREFIA keeps up with the times in electronically notifying contents of a contract with a credit card company to a member retailer. There has been a complaint that the fact that a credit card company informs the contents only by snail mail falls behind in offering information promptly in the high-speed times.
To improve it, CREFIA plan to diversify notification methods for contents of a contract under the consent of a member store, adding electronic ones like email to the existing one.
CREFIA submitted the revised version of standardized agreements to the Financial Services Commission (FSC) on Aug. 28. They will eventually take effect as late as early October
By Eugene Yu (email@example.com)