Magnetic cardholders to be denied cash advances

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Magnetic cardholders to be denied cash advances

By Yoon Ja-young

People using credit cards with the conventional magnetic stripes without integrated circuit (IC) chips will be denied cash advance service or card loans at the ATMs from this Thursday, the Financial Supervisory Service (FSS) said. It aims to prevent credit card frauds using counterfeit cards.

The financial regulator said Sunday that people holding the outdated magnetic stripe credit cards should contact their card company and ask to switch to cards with IC chips. The credit cards in question have only a stripe of magnetic information affixed to the back, without the golden or silver color IC chip at the front.

The measure was taken as magnetic stripe cards are considered vulnerable to fraud. Fraudsters can copy the information in the magnetic stripe to make a counterfeit card. The IC chips are more secure against fraud or hacking. Many countries have been switching to IC chip cards.

The FSS said that the old cards with only magnetic stripes would still be valid for shopping. But holders will be denied cash advance services or card loans through ATMs.

The financial regulator has been promoting the IC chip cards since last September, informing those seeking a cash advance or credit card loans at ATMs that they should switch to IC chip cards.

The regulator estimates there will be little inconvenience among credit card users as most have switched to IC chip cards already. "As there haven't been any notable problems during the promotion period, we determined that IC chip cards can be stably used at ATMs," an FSS spokesperson said. According to the regulator, 98.8 percent of credit cards used here now contain the IC chips.

While the regulator and credit card users are switching to credit cards that contain both magnetic stripe and IC chips, many shops are still using terminals that can read only magnetic stripes. They find the IC chip terminals, which cost between 200,000 and 300,000 won, expensive.



Korean Language

5일부터 ATM서 IC칩 없는 마그네틱카드 카드대출 제한

금융감독원은 5일부터 현금자동입출금기(ATM)에서 IC칩이 탑재되지 않는 마그네틱(MS) 신용카드로 현금서비스와 카드론을 이용할 수 없다고 1일 밝혔다.  

금융당국은 위·변조된 신용카드로 ATM에서 카드대출(현금서비스 및 카드론)을 받는 범죄를 원천적으로 차단하고자 이런 조치를 취했다.

앞으로 이용이 제한되는 신용카드는 카드 앞면에 상하 약 1cm 크기의 금색 또는 은색 IC칩이 없이 뒷면에 MS(검은색 자기 띠)만 있는 신용카드다. 

금융사들은 내년 2월까지 ATM에서 카드대출 시 IC방식으로 우선 승인하되 IC칩 손상 등으로 거래 불가할 때에만 MS방식으로 자동 전환해 승인할 예정이다.

금융사들은 5월말까지 한시적으로 각 자동화기기 코너별로 1대의 ATM에만 MS신용카드를 이용할 수 있도록 할 계획이다. (연합뉴스)



By Yoon Ja-young

People using credit cards with the conventional magnetic stripes without integrated circuit (IC) chips will be denied cash advance service or card loans at the ATMs from this Thursday, the Financial Supervisory Service (FSS) said. It aims to prevent credit card frauds using counterfeit cards.

The financial regulator said Sunday that people holding the outdated magnetic stripe credit cards should contact their card company and ask to switch to cards with IC chips. The credit cards in question have only a stripe of magnetic information affixed to the back, without the golden or silver color IC chip at the front.

The measure was taken as magnetic stripe cards are considered vulnerable to fraud. Fraudsters can copy the information in the magnetic stripe to make a counterfeit card. The IC chips are more secure against fraud or hacking. Many countries have been switching to IC chip cards.

The FSS said that the old cards with only magnetic stripes would still be valid for shopping. But holders will be denied cash advance services or card loans through ATMs.

The financial regulator has been promoting the IC chip cards since last September, informing those seeking a cash advance or credit card loans at ATMs that they should switch to IC chip cards.

The regulator estimates there will be little inconvenience among credit card users as most have switched to IC chip cards already. "As there haven't been any notable problems during the promotion period, we determined that IC chip cards can be stably used at ATMs," an FSS spokesperson said. According to the regulator, 98.8 percent of credit cards used here now contain the IC chips.

While the regulator and credit card users are switching to credit cards that contain both magnetic stripe and IC chips, many shops are still using terminals that can read only magnetic stripes. They find the IC chip terminals, which cost between 200,000 and 300,000 won, expensive.


Yoon Ja-young yjy@koreatimes.co.kr
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