FSS: "It's Advantageous to Pay by Card in Local Currency Overseas"

'Precautions for Using Credit Cards: Key Complaint Cases'

The financial authorities have urged caution regarding credit card usage, highlighting the advantage of paying in local currency when making card payments at overseas merchants.

On the 1st, the Financial Supervisory Service (FSS) announced in "Consumer Precautions Learned from Major Complaints - Credit Card Usage Precautions" that paying in local currency at overseas merchants is beneficial, as paying in Korean won may incur unwanted fees. Using the overseas won payment service can result in additional fees ranging from approximately 3% to 8%, depending on the service used.

In particular, overseas accommodation reservations, travel agencies, and e-commerce sites are typical examples of websites that offer overseas won payment options, so consumers should verify that payments are not made in won during transactions.

Additionally, the FSS advised that if a card enrolled in automatic payments is reissued, not all automatic payment details are automatically transferred. Therefore, it is essential to check the transferred details and register the updated payment information. Bulk inquiries for card automatic payments can be made through the Korea Financial Telecommunications & Clearings Institute’s integrated account information management service or the "Account Info" application.

It was also noted that if a card previously in use is discontinued, accumulated points and discount benefits can still be used during their validity period. However, the obligations to provide various services related to the card may change (be reduced), and the future availability of the same card depends on the card issuer’s business decisions. Card companies notify customers about points set to expire and their expiration dates through billing statements and other means starting six months in advance.

Furthermore, the authorities emphasized that "card kkang"?the act of pretending to make transactions with a card without purchasing goods or services?is illegal. Engaging in such transactions can lead to credit score deterioration, financial losses, and disadvantages such as suspension of card use or reduction of credit limits.