Monday, 15 August 2011
Visa is losing grip on the Asian market
SEOUL/BEJING - South Korea’s largest credit card firm, BC Card, is considering legal action against payment processor Visa, the Chinese press agency Xinhua has reported. “BC Card plans to file a complaint against Visa with the Fair Trade Commission (FTC) over its unfair transaction activities”, an official at BC Card told Xinhua.
The official claims that Visa has recently imposed fines of up to $100.000 on BC Card for not processing international transactions through the VisaNet payment system, a requirement Visa has for local partners wishing to carry out international transactions. BC Card claims Visa has withdrawn $50.000 from its settlement account as BC Card used China UnionPay instead for international transfers. Another fine of $50.000 was because BC Card used Star Network – a US payments network – to process international transactions.
Experts have stressed these latest incidents are another sign Visa is losing grip on the region and China UnionPay’s influence is growing in Asia. China UnionPay is the sole bankcard processor in China and its overseas presence has grown significantly in recent years.