What you should be aware of
- Credit or debit card companies are liable for most of illegal payments made using lost or stolen card
“Where a credit card holder or a debit card holder reports to a credit card company on loss or theft of the card, from that time, the credit card company shall be liable to the credit card holder or the debit card holder for use of the credit card or the debit card.” (Article 16-1, Specialized Credit Finance Business Act)
However, credit and debit card companies are responsible for the reimbursement only if the credit or debit card holder is not liable for loss or leak of pin number.
- Card holders may be partially responsible for the loss of their card under certain cases
If a stolen card does not have the holder’s signature on the back, the holder might only get a small amount of repayment from the card company.
Card companies are not obliged for reimbursement when the holder lent or handed over his or her card to someone else and payments are made using that card by a third party.
- Credit card member stores are liable for reimbursement in case they didn’t ask for customer’s signature when making credit card payments worth KRW 50,000 or more.
What you should do
- Report immediately to respective card companies in case of loss of theft of card.
- Be sure to write your signature on the back of your cards and put the same signature when making card payments.
- Pin numbers should be kept completley secret and should be something that no one else can guess.Do not lend your cards even to your closest family.