Hyundai Motor Company and BC Card, which had come into conflict over a composite credit card installment financing rate, eventually terminated their credit card merchant contract.
On the 1st, Hyundai Motor Company notified credit card merchant contract termination so that BC Card customers cannot purchase Hyundai cars using their credit cards or check cards. With this, Hyundai Motor Company’s request to BC Card for the composite installment financing rate reduction, which had been continued since September last year, came to a crippled end.
Hyundai Motor Company had requested BC Card to lower the composite credit card installment financing rate from the current 1.9% to 1.3%, which is BC Card’s check card commission rate.
On the other hand, BC Card has been standing up to Hyundai Motor Company’s request, claiming that the rate must be 1.5%, which is the same as of KB Kookmin Card’s rate. BC Card’s credit card and check card rates as of present are 1.9% and 1.3% respectively.
A Hyundai Motor Company insider said, “BC Card’s credit card merchant rates are comprised of only two, the credit card (1.9%) and the check card (1.3%) rates. However, BC Card is instating on a third rate, which is 1.5%. So, we failed to reach a settlement.”
In relation to this, a BC Card insider said, “We made a concession to Hyundai Card by asking it to keep the general credit card payment instead of suspending composite installment transactions. However, Hyundai Motor Company unilaterally notified the contract termination.” He expressed opposition, “This is a plutocratic despotism using the company’s monopolistic position in the market.”
There is still a room for final negotiation as the companies agreed on an additional negotiation over the composite installment financing rate until the 4th.
Gil Jae-shik | osolgil@etnews.com