Obvious but unpracticed things related to credit card usage

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What you should be aware of 

  1. 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.

  1. 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.

  1. 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.

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What you should do

  1. Report immediately to respective card companies in case of loss of theft of card.
  2. Be sure to write your signature on the back of your cards and put the same signature when making card payments.
  3. 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.
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Debit Card for rational consumption and extra benefits

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Hi readers!

Do you guys remember my article about tax favors and benefits offered when using banking applications on smart phones? Today’s post is pretty much related to that post, while this one focuses on ‘debit cards’.

It might differ from country to country, but in Korea, debit cards are being widely used by many college students as well as people with low-credit ratings. This is because those people do not have high credit ratings and they are not qualified to hold their own credit cards. Most of the credit card companies carry out a fastidious credit assessment to examine a credit card applicant’s personal details such as occupation, disposable income, and any other financial information.

Compared to credit cards, debit cards encourage card holders to do rational consumptions. This is because a debit card holder is only allowed to spend the amount up to his own balance, not being able to overspend. That is why lots of individuals, amid economic depressions, are more likely to make payments by their debit cards, so as not to make over-spending by credit cards. Keeping this consumption trend in mind, many banks introduce benefits and favors for their customers using debit cards. Moreover, financial authorities and institutions are propelling an income tax policy favorable to debit card holders.

Let’s find out some of the benefits offered by banks. Most banks are providing various benefits which are specifically targeting a certain group of customers. For example, banks provide college students with discounts on exam fees, movie tickets, books, and meals at popular restaurants. Banks, by doing so, target the young who are the potential customers and debit card holders. Actually, there are countless numbers of debit cards issued by different banks. And, of course, benefits are all different, which makes you look for the most suitable one for your own needs. I recommend you to visit any bank near your place and have a quick consultation. Sometimes, banks offer exemption of transaction costs as well as favorable interest rate. Why don’t you just visit and knock the closest bank?

One of the personnel from a major bank in Korea says, “With lots of efforts promoting debit cards, a debit card issuance is growing six times as fast as a credit card issuance. The amount of transactions by debit cards is expected to reach KRW 100 trillion in the near future.” I would like to wrap up this post with another tip for you. Using a debit card is very beneficial for tax refund at the end of year. Financial authorities decided to lower the rate of income tax deduction from 20 percent to 15 percent with regard to transactions made by credit cards. However, if you make transactions by debit cards, you will be granted 30 percent of income tax deduction. Isn’t it a beneficial enough for you to use your debit cards for transactions?

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