Korea’s credit card companies are cutting off from Visa and Mastercard; and will strengthen their relationship with China UnionPay and Discover, according to The Korean Biz Wire.
The Korean companies were paying an annual average of 140 billion won in royalty fees for using the Visa and MasterCard logos on their cards. There was also an additional charge of 1 percent for every transaction made overseas and 0.04 percent of fees for domestic transactions.
“By cutting the ties with major international card issuers we could save a huge amount in fee payments,” a BC Card official told The Korean Biz Wire. “This in turn will help us improve our financial standing and customer service quality.”
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