Mobile Commerce

Korean Credit Card Companies Will Pay for POS Upgrade for ‘Mom and Pop Shops’

The Financial Supervisory Service (FSS) in South Korea announced on Friday that local credit card companies will help over 650,000 mom-and-pop stores pay for ENVY compliant terminals by 2015, according to The Korea Times.

 

Companies such as Shinhan Card, KB Kookmin Card and NH NongHyup Card will contribute up to 300 billion won ($290 million) to replace all card strip readers at small merchant shops.

 

“If a customer pays his or her purchase with a credit card at a supermarket which uses the point-of-sale (POS) terminal for settlement via a strip reader, it is very vulnerable to hackers,” a FSS official said.

 

In December, police arrested a group of hackers who stole 3.2 million credit card transactions and sold the information of 205,000 cardholders.  The information included names, telephone numbers, credit card numbers, expiration dates and passwords.

 

The FSS and Credit Finance Association of Korea (CREFIA) also want all credit card companies to upgrade their fraud detection system.

 

“The financial authorities will ask card companies to offer free text messaging services to card users for settlements worth more than 50,000 won as early as May,” a CREFIA official said.

 

“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.

 

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