South Korean card networks have begun trimming cardholder benefits to offset the revenue reductions they will experience because of reduced merchant-transaction fees.
In announcements made last week, both BC Card Co. Ltd. and Hana SK Card Co. Ltd. said they no longer will offer air-mileage credits to cardholders who opt for interest-free installments for their credit card purchases. KEB Credit Service also said it would provide fuel-mileage credits on its credit cards when customers spend at least 200,000 won (US$173 or 132 euros) per month using their cards.
None of the issuers responded to PaymentsSource requests for comments about their policy changes.
Their decisions come as South Korea’s major card networks announced in October plans to cut the interchange fees they collect from certain small merchants
Since then, the card networks have faced added pressure from auto conglomerates and insurers to reduce their rates as well (
