Careless Card Use May Lead to Sudden Loss... Block This When Making Payments Abroad

Card Spending Soars as Overseas Travel Increases
Block 'Korean Won Payment'... "You Can Save on Fees"

The Financial Supervisory Service announced on the 27th that, as overseas travel has recently increased, card usage abroad has also risen, and provided related precautions.

As overseas travel increases, card usage abroad is also rising. Photo by Getty Images

The Financial Supervisory Service stated that applying in advance for the service that blocks payments in Korean won when making overseas transactions can help reduce related costs. This is because, when using a card abroad and opting for the overseas Korean won payment service instead of the local currency, an additional fee of approximately 3 to 8 percent of the transaction amount is charged for using the won payment service, resulting in a higher bill.

On the 23rd, marking the beginning of the peak summer vacation season, Incheon International Airport Duty-Free Shop is bustling with travelers heading overseas. Yonhap News

Therefore, when purchasing goods overseas, paying in the local currency or applying for the overseas won payment blocking service through your card issuer (including banks that also issue credit cards) before departure can help reduce unnecessary fees. You can apply for this blocking service in advance using the card issuer's website, call center, or mobile application, whichever is most convenient.

It is also helpful to apply for the overseas usage safety setting service before departure. Through this service, you can set in advance the countries where the card can be used, the amount per transaction, and the period of usage. By doing so, you can adjust your credit card usage limit to cover only necessary expenses before your trip, considering the duration and expected costs, which can help block or minimize losses from fraudulent transactions abroad.

Before departure, downloading your card issuer's app and noting down the phone number for the lost card reporting center will help you quickly report in case of card loss or theft. Especially, even if you lose several credit cards, you can report all of them at once by contacting just one card issuer.

When traveling abroad, it is best to avoid using ATMs located in secluded areas or privately operated ATMs, as there is a risk of card theft and card information skimming. When paying by card at overseas street vendors or bars, you should always check the payment process yourself, as there have been cases where the card is taken elsewhere in order to tamper with or clone it.

A representative from the Financial Supervisory Service explained, "In overseas cases, it is more difficult to respond to incidents compared to within Korea, so the amount per fraudulent transaction tends to be higher, and the number of cases is also on the rise." The representative added, "With the number of overseas travelers expected to increase further during the summer vacation season and Chuseok holidays, there are concerns that overseas fraudulent usage damages may also rise."