ID :
192732
Mon, 07/04/2011 - 12:27
Auther :
Shortlink :
https://oananews.org//node/192732
The shortlink copeid
BC Card reports Visa's alleged abuse to watchdog
SEOUL, July 4 (Yonhap) -- South Korea's top credit card company said Monday it reported U.S. credit card giant Visa Inc. to South Korea's antitrust watchdog for abusing its market-dominant position.
The move comes after Visa imposed a US$100,000 fine on BC Card Co. for using other card companies' payment systems. Visa mandates its membership companies to exclusively use its global payment network for overseas services.
"Visa has breached the fair trade law by forcing member companies to use its global payment system for overseas credit card services," BC Card said in a petition to the Fair Trade Commission.
The local credit card firm said Visa's action was intended to bolster its market dominance and that it unfairly hinders BC Card's business operations.
BC Card breached the agreement by teaming up with U.S.-based Star Network and China-based China UnionPay in a bid to lower commissions for its overseas service users.
Despite BC Card's violation, Visa's decision has sparked a heated debate on its fairness.
Markets watchers said Visa didn't fine China UnionPay -- also a member of Visa -- for joining hands with BC Card, apparently due to its extensive overseas network, which Visa may wish to bank on.
China UnionPay, which was set up by 140 Chinese banks, has an overseas network that includes around 100 countries. In contrast, BC Card has only two overseas alliances -- Star Network and UnionPay.
The move comes after Visa imposed a US$100,000 fine on BC Card Co. for using other card companies' payment systems. Visa mandates its membership companies to exclusively use its global payment network for overseas services.
"Visa has breached the fair trade law by forcing member companies to use its global payment system for overseas credit card services," BC Card said in a petition to the Fair Trade Commission.
The local credit card firm said Visa's action was intended to bolster its market dominance and that it unfairly hinders BC Card's business operations.
BC Card breached the agreement by teaming up with U.S.-based Star Network and China-based China UnionPay in a bid to lower commissions for its overseas service users.
Despite BC Card's violation, Visa's decision has sparked a heated debate on its fairness.
Markets watchers said Visa didn't fine China UnionPay -- also a member of Visa -- for joining hands with BC Card, apparently due to its extensive overseas network, which Visa may wish to bank on.
China UnionPay, which was set up by 140 Chinese banks, has an overseas network that includes around 100 countries. In contrast, BC Card has only two overseas alliances -- Star Network and UnionPay.
