FSS: "PG Companies Must Comply with Card Payment Cancellation Requests"

FSS: "PG Companies Violating Credit Card Payment Cancellation Rules Breach Credit Finance Act"
On the 29th at 4 PM, On-site Meeting with PG Companies to be Held

On the 29th, the Financial Supervisory Service (FSS) stated that payment gateway companies (PG companies) have an obligation to comply with customers' requests to cancel card payments in relation to the delayed settlement incident involving TMON and WEMAKEPRICE.

Park Sang-won, Deputy Director of the FSS's Small and Micro Finance Division, held a briefing at 2 p.m. at the FSS headquarters in Yeouido, Seoul, saying, "Refusal by PG companies to cancel card payment transactions may violate the Specialized Credit Finance Business Act (SCFBA)." According to Article 19 of the SCFBA, "Compliance by Merchants," payment gateway companies like PG companies must comply when credit card members request transaction cancellations or refunds.

Deputy Director Park urged PG companies to take a more responsible stance, stating that the fees they receive from card companies and goods sellers/service providers (TMON and WEMAKEPRICE) include risk costs related to this incident. He said, "Since PG companies receive fees from TMON, WEMAKEPRICE, and sellers, it is appropriate for them to bear a certain portion of the payment risk," adding, "Most of the 11 PG companies are large financial firms with capital of around 200 billion to 300 billion KRW, so they have the capacity."

Currently, the 11 PG companies handling card payments for WEMAKEPRICE and TMON are processing cancellation requests by receiving objections submitted to card companies, verifying whether goods were undelivered by WEMAKEPRICE and TMON, and proceeding with payment cancellations. Eight PG companies, including Naver Financial, Kakao Pay, NICE Payments, Danal, Toss Payments, NHNKCP, NHN Payco, and Smartro, are conducting procedures to receive and guide customers' direct card payment cancellation requests through their websites. The remaining three PG companies plan to implement related procedures soon.

However, it is expected to take some time for customers to receive refunds. Deputy Director Park explained, "Currently, verification of payment cancellations by WEMAKEPRICE and TMON is delayed," adding, "It may take some time for actual refunds to reach consumers." The FSS is actively requesting cooperation by dispatching inspection personnel to ensure WEMAKEPRICE and TMON promptly provide PG companies with information related to card payment cancellations.

The FSS plans to monitor PG companies' receipt of card payment cancellations and refund statuses related to WEMAKEPRICE and TMON. An FSS official said, "We will hold an on-site meeting at 4 p.m. today to listen to difficulties related to PG companies' card payments," adding, "We will actively support necessary matters."

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