The Financial Services Commission of Korea is conducting an investigation of certain universities domestically that do not accept credit cards for the payment of tuition fees, local media are reporting.
The regulator is looking into the possibility that some universities are violating the Specialized Credit Financial Business Act by refusing to allow such payments, according to The Korea Herald. Under the law, approved brokers that refuse to accept credit cards or that treat consumers who pay using credit cards unfavorably face fines of up to 10 million won (US$8,800 6,449 euros) or up to one year in prison.
Of the country’s 389 universities, only 70 reportedly allow the use of credit cards to pay tuition fees. The regulator could be investigating nine of those 70 universities, which are alleged to have rejected credit card payments despite having formed agreements with credit card companies, according to published reports.
The commission launched the investigation after civic organizations complained that two of the nine universities accepted credit cards for courses developed for nonstudents, but not for payment of students’ tuition fees.
“We cannot talk on this issue publicly right now, especially to an overseas publication, as it involves our educational institutions,” an official at the commission told PaymentsSource when asked to confirm the published reports.
Some universities are reluctant to accept credit cards because of the fees they pay, which equate to about 1.5% of the transaction amount, according to The Korea Herald, which noted that universities in the capital city of Seoul alone take in around 300 billion won in tuition fees annually.
The commission is looking into ways to lower the card-acceptance rates, according to the newspaper.
