Credit card companies receive 130,000 payment cancellation requests… amounting to 550 billion won
“It takes 2-3 weeks for actual refunds to be processed”
Primary accountability of PG companies vs. sharing responsibility within the financial sector, “It seems like both credit card companies and PG (Electronic Payment Processing) companies are avoiding responsibilities and just watching each other.”,
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, “It’s frustrating that no one clearly promises to refund.”,
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, ‘Consumers are expressing frustration as delays in payment cancellations and refunds related to the TMON and WeMakePrice non-settlement issue continue. Credit card companies state that additional verification from PG companies regarding non-delivery of goods is needed for customer’s credit card payment cancellation requests, causing delays. PG companies are feeling burdened by refunds as they are unable to fully retrieve cancellation fees from TMON and WeMakePrice and have to handle it themselves.’,
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Citizens passing by in front of the TMON headquarters in Gangnam-gu, Seoul on the 29th amid the ongoing non-settlement issue of TMON and WeMakePrice. Photo=Reporter Jo Yong-jun jun21@.,
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, Payment cancellation and refund requests to credit cards and PG companies… few actual refund cases,
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, ‘According to the financial industry on the 1st, there are currently 9 credit card companies (Shinhan, Samsung, KB Kookmin, Hana, Hyundai, Lotte, BC, NH Nonghyup, Woori) receiving complaints and requests for installment contract withdrawal and opposition rights from customers affected by the TMON incident. Some credit card companies are informing customers that “Due to the high volume of requests, it may take an average of 2-3 weeks to process.” Some credit card companies stated that they are “requesting factual confirmation from PG companies and processing them sequentially.” As of the 28th, there were approximately 130,000 complaints and objections related to TMON and WeMakePrice processed through credit card companies, amounting to around 550 billion won.’,
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, ‘The PG companies involved in this incident are 11 companies (Naver Financial, KakaoPay, NICE Payments, Danal, Toss Payments, NHN KCP, NHN Payco, Smartro, KG Inicis, KICC, Hekto Financial). They are accepting customer’s payment cancellation requests through their websites separately from credit card companies.’,
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, “Although refund requests to credit cards and PG companies are increasing, smooth refund processes have not yet been implemented. In the social networking service (SNS) group chat rooms where thousands of TMON victims gather, there are often reports of refunds from major fintech companies such as Naver Pay, KakaoPay, and Toss Pay, but there are few cases of refunds from small PG companies or credit card companies. However, even though large fintech companies swiftly refund their own ’00 money, refunds for credit cards or bank transfers are still being delayed.”,
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, No one wants to take on losses… Credit card and PG companies watching each other,
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, ‘Credit card companies mentioned that the refund process may not proceed smoothly until PG companies confirm the possibility of payment cancellations. At the onset of the TMON incident, PG companies blocking the payment cancellation function led to delays in refunds, and the recent entry of TMON and WeMakePrice into corporate recovery (court receivership) proceedings has further delayed the verification process for payment cancellations. A financial industry official mentioned, “It is understood that the Financial Supervisory Service has dispatched an inspection team to TMON and WeMakePrice to analyze delivery and transaction-related computer data,” stating, “Once the data is obtained, the refund process is expected to expedite.”‘,
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, ‘PG companies are currently cross-referencing the payment cancellation details provided by credit card companies and their own findings with TMON and WeMakePrice data to select refund recipients. WeMakePrice delivered information on general merchandise delivery excluding gift certificates and travel products to each PG company the day before. TMON is also scheduled to provide related information to PG companies on the same day. A PG industry official mentioned, “We will expedite the refund process as much as possible to minimize customer damages,” and added, “It is currently unknown how long it will take for normal refunds to be processed.”‘,
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, ‘However, PG companies are feeling burdened as TMON and WeMakePrice lack sufficient financial resources and their assets and debts are frozen due to the corporate recovery proceedings, meaning they have to first refund the money with their own funds and claim the right to recover the money later. The PG industry argues that it is unfair for the losses from this incident to be solely borne by PG companies and is demanding that credit card companies also share the burden.’,
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A citizen looking at placards put up by victims in front of the WeMakePrice headquarters on Yeongdong-daero in Gangnam-gu, Seoul on the 29th amid the ongoing non-settlement issue of TMON and WeMakePrice.,
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, Financial authorities: “PG companies are primarily responsible”… possibility of financial sector sharing responsibility later,
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, ‘Financial authorities take the position that PG companies have primary responsibility in the refund process. Article 19 of the Specialized Credit Financial Business Act states, “Payment processing companies must comply when credit card members request transaction cancellations or refunds.” Park Sang-won, Vice Chairman of the Financial Services Commission, stated, “PG companies received payment processing fees from TMON and WeMakePrice, so they should bear the related risks,” adding that “Most of the 11 major PG companies are affiliated with large corporations and have capital of around 200 to 300 billion won.” Jeon Sang-beom, the representative lawyer of Law Firm Logos, explained, “The provision in the Specialized Credit Act regarding PG companies’ obligations was added in 2015, and as e-commerce became more active, regulations were necessary, so the law was revised. PG companies should abide by regulations based on the documentations,” and said, “Based on the provisions alone, it is the risk that PG companies should bear primary responsibility when such incidents occur.”‘,
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, ‘There are also counterarguments that financial authorities should not only hold PG companies responsible but should take more proactive measures to address the situation. Seo Ji-yong, a professor of business administration at Sangmyung University, stated, “The provision in the Specialized Credit Act means that you should cancel transactions when you receive money for normal trades, not force them to do so in a situation like now where TMON and WeMakePrice are involved in delayed settlement issues,” and said, “Although authorities may encourage PG companies to handle transactions according to the Specialized Credit Act regulations, an approach that relies solely on regulatory standards is not appropriate.” A major PG company official expressed, “It feels like the authorities are asking PG companies to absorb losses for resolving the situation,” and said, “In the case of TMON and WeMakePrice, they have been experiencing capital impairment since 2015, and one may wonder if the financial authorities also bear responsibility for their negligence in management and supervision.” Geun Hyeon Lee, the Chairman of the Financial Services Commission, responded to urgent inquiries regarding the TMON and WeMakePrice incident during a parliamentary National Defense Committee meeting, stating, “The financial sector will encourage more active involvement in protecting consumers and sellers.”‘,
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