[Ki Ha-young's Life Card] If You Lost Your Card... Report the Loss at Only One Place

Unauthorized Use Amount, Card Company Compensation Around 60 Days
However, Compensation Difficult if Card Not Signed or Transferred to Family

[Asia Economy Reporter Ki Ha-young]Is there anyone these days without at least one credit card? In modern society, anyone can have a card if they want. Credit cards have brought unparalleled convenience to daily life. Now, wherever you go, you can easily see people paying with credit cards or smartphones. As demand has increased, cards with various benefits are being released almost daily. Accordingly, Asia Economy delivers various stories related to cards, which are inseparable from our consumer life, through the weekly 'Cards in Daily Life' corner, including introductions to new cards, industry behind-the-scenes, and guides for card beginners.

What should you do if you lose your credit card or it is stolen? You must report it to the respective credit card company immediately upon discovering the loss or theft. It helps to know the service center phone number of your card company in advance. Since October 2016, card companies have operated a 'Unified Card Loss Reporting Service' system, allowing you to report the loss to one financial institution, and all other cards from different companies will be reported at once.

The card company receiving the loss report will notify you via text message that the report has been successfully received. If you do not receive a text message after reporting the loss, you should directly confirm with each card company.

Then, can you be compensated for unauthorized use due to loss? According to the Korea Federation of Credit Finance, unauthorized use occurring after 60 days prior to the report date of loss or theft can be compensated by the card company. However, card companies may charge a compensation processing fee of up to a certain amount for unauthorized use exceeding 500,000 KRW that occurred before the loss or theft report.

On the other hand, compensation for unauthorized use may be difficult if the member is responsible for the loss or theft. For example, if unauthorized use occurs due to the member's intentional act, the card company has no obligation to compensate. Also, if the card is not signed, compensation is not possible. Examples include cases where the merchant tried to verify identity through signature but failed due to the member’s unsigned card, or when the member falsely reports having signed. It is also difficult to receive compensation if the member intentionally or negligently discloses the PIN.

Furthermore, if the card is transferred or provided as collateral to others, including family or cohabitants, or if the member negligently exposes or leaves the card unattended, full compensation for unauthorized use due to loss cannot be received. Also, if the member intentionally delays reporting the loss or theft to the card company without reasonable cause, compensation for unauthorized use will not be provided. Therefore, if you lose your card, it is necessary to report it immediately and check whether the card was signed. Since anyone can experience card loss, knowing this information in advance will help reduce damage.

This content was produced with the assistance of AI translation services.