Credit card notification fees to be paid from reward points

Starting next month, the fee for monthly text message notification of credit card purchases will be automatically deducted from reward points instead of charging cardholders 300 won (27 cents) per month, companies said yesterday.

The changes come after financial authorities asked card companies to allow shoppers to autopay text message expenses with points to ensure convenience.

Hyundai Card, Lotte Card, Woori Card, Hana SK Card and BC Card said the change will be adopted starting in May unless customers notify companies that they want to pay in cash.

The service is already available for shoppers using Shinhan Card and KB Kookmin Card.

Out of 120 million credit cards issued, 80 million subscribe to monthly text message notification service, which translates to 290 billion won a year.