When Trading Used Cars Between Individuals
One-Time Merchant Status Granted, Credit Card Payment Available
Escrow Service Reduces Risks in Direct Transactions
[Asia Economy Reporter Ki Ha-young] A service that grants one-time credit card merchant status to individual sellers for peer-to-peer used car transactions, enabling credit card payments, has been launched. Attention is focused on whether transaction transparency in the used car market, a typical lemon market, will be secured and peer-to-peer used car transactions will be revitalized.
KB Kookmin Card announced on the 3rd that it has introduced the "KB Kookmin Card Used Car Safe Payment Service" based on this concept. Designated as an innovative financial service by the Financial Services Commission in February last year, this service grants one-time credit card merchant status to individual sellers without a business registration certificate during peer-to-peer used car transactions, allowing credit card payments and the use of card-linked installment financing services.
In addition, various convenience services necessary for car sales, including vehicle price information, insurance accident history, and automobile registration certificate inquiries, as well as ▲accompanied inspection by professional vehicle mechanics ▲car insurance subscription, are provided as a 'one-stop' service. In particular, through the 'payment escrow' service, where the sales proceeds are paid two business days after the confirmed purchase date such as vehicle title transfer, the uncertainty and risk of transactions that can occur in peer-to-peer direct transactions, such as transaction fraud and sale of defective vehicles, have been greatly reduced.
This service is provided to individual customers who wish to sell or purchase used cars through direct transactions. Seller registration can be done regardless of KB Kookmin Card membership status, and when a prospective seller applies and registers the vehicle information for sale, KB Kookmin Card conducts a review for merchant registration and checks whether the vehicle is eligible for transaction based on the registered vehicle information.
Buyers can use the service if they are members holding a KB Kookmin Card credit card, and income deduction is available for credit card payment amounts. Buyers can check purchase vehicle information such as the automobile registration certificate and then check ▲remaining credit card limit ▲special limit application amount ▲card-linked installment financing available amount to choose between lump-sum credit card payment and card-linked installment financing as the payment method.
The service fee is 1% of the payment amount. Sellers and buyers each bear 0.5%, and when using linked installment financing, the 0.5% fee borne by the buyer is waived. Both sellers and buyers can use the service once a year, and lump-sum credit card payments are possible up to a maximum of 20 million KRW.
This service is currently provided in collaboration with KB Capital’s comprehensive digital automobile platform, "KB ChaChaCha." In the future, partnership channels will continue to expand to used car-related platforms such as "Jikcha" and "Hello Market."
A KB Kookmin Card official said, "We will continue to innovate automotive financial services including used cars and combine various convenience services continuously so that this service can become an 'icon' representing used car-related financial services."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
