SEOUL, KOREA – The low-drawn-out BC Card-Visa dispute over international card commission fees is simply treading water. In July of 2011, BC Card filed a complaint against Visa with the Korea Fair Trade Commission (KFTC) for its abuse of market dominance, but nothing has been settled since then. As a result, BC Card coughed up an accumulated fine of USD 1.05 million over the past 18 months.
According to the KFTC, BC Card and Visa have been locking horns over the use of Visa’s global network for three years.
Visa’s international operation rules require credit card companies who signed a contract with Visa to use Visa’s global payment network. However, BC Card opted for its own payment network with its credit card that was issued in partnerships with STAR (the largest American interbank network) and China’s UnionPay.
Accordingly, Visa levied a fine of USD 100,000 on BC Card for violating its rules in June, 2011.
There will be no way out unless the KFTC comes out with a ruling. Thus, both are painfully waiting for the KFTC’s decision, but the KFTC repeatedly said it needed more time to finish its legal reviews and economic analyses.
Sean Chung (hbpark@etnews.com)
**Article provided by etnews [Korea IT News]
[Reference] : http://english.etnews.com/electronics/2715655_1303.html
