|
|
 |
|
 |
The purchasing card is for the settlement exclusively to substitute current bills or cash payment method regarding the transactions between companies (including e-commerce). |
|
|
|
 |
For companies that have to clear payments with headquarters in order to purchase goods(The headquarters is the service affiliate and agent stores (many) are to be members -> Reversal purchase method)
|
|
|
|
|
For companies that need to clear payments in order to buy raw materials to make goods(The company purchasing goods is a member and the suppliers(many) are the service affiliates -> Regular purchasing method)
|
|
|
|
|
To clear payments on stationery, or gasoline payments (Payments that need to be cleared by the company on a regular basis)
|
|
|
|
|
This service also applies to the e-commerce settlement.
|
|
 |
|
|
|
|
Public institutions or organizations, financial institutions, media, academic institutions
|
|
|
|
|
Foreign companies (The Korea Exchange Bank will select)
|
|
|
|
|
Professional firms(law firms, accounting firms, engineering firms, patent firms, tax offices, customs duty firms and auditors, etc)
|
|
|
|
|
Korea Federation of Banks, Financial Training Centers, KTCI, associations permitted on the establishment by business types from the government or publicly listed firms.
|
|
|
|
|
Companies that have undergone at least 3 consecutive closing accounts periods and that have equity capital over KRW 200 million.(Exception: companies losing equity capital and are under court receivership)
|
|
|
|
|
Other companies or sole proprietors will be reviewed separately by the bank or will be requested to submit collateral for the issuance of the cards.
|
|
|
|
A limit will be decided according to KEB's rules on the loan limit (in consideration of a company's credit rating and claiming right compensating ability by way of selling assets or so).
|
|
|
|
Process of the Transaction |
|
|
|
|
KEB and a supplier (affiliate store) sign an affiliate store contract (After consulting about the rate of fee paid by an affiliate store and method of payment for goods supplied, etc). The member of the purchasing card service (purchaser) enters into an agreement for the membership with KEB(After consulting about card expiry, period to pay for the purchases and how to compensate a claiming right by way of selling assets or so).
|
|
|
|
|
A card member will purchase goods using the purchasing card from an affiliate store and the affiliate store submits card sales vouchers to KEB.
|
|
|
|
|
The Korea Exchange Bank will deposit the sales amount to the affiliate store's account after deducing commission or fee, and it will request the appropriate payment to the card member during the agreed period.
|
|
|
|
|
This transaction process will be concluded when the card member pays the payment to KEB on the agreed settlement date with KEB.
|
|
|
|
Fee will be decided reflecting prevailing market interest rate in consideration of a member's credit rating, collateral pledged, supplier's (affiliate store) repurchase condition and the member's card use period.
|
|
|
|
|
A member can pay in lump-sum after one month, or can pay in lump sum after grace period of one month, two months, or three months.(If necessary, members can make installment payments by paying installment payment fee under a specific agreement.)
|
|
|
|
Difference Compared with Existing Corporation Cards |
|
|
|
|
The purchasing card can be used at specific affiliate stores.(The existing corporation cards can be used at unspecific affiliates stores), and the diverse settlement dates are available. While the existing corporation cards can only be used for business related entertainment use, the purchasing card can be used widely including goods purchases or gasoline purchase)
|
|
|
|
Benefits of the Purchasing Card |
|
|
|
 |
Supplier (Affiliate store)
|
|
|
|
 |
Payments on supply can be cashed in immediately, and the supplier can minimize discount cost of bills. |
|
Transaction and administrative costs can be saved and also risk upon credit sales can be reduced. |
|
Upon request, the supplier can receive a detailed accounts on the goods supplied. |
|
|
|
|
 |
Purchaser (Purchasing card member)
|
|
|
|
|
Members can substitute the settling payments by using bills for this service, and reduce personnel, cost and time through office automation. The same financial effect as issuing bills can be maintained and the extension of payments for the goods purchased up to 90 days or more is possible. |
|
A purchaser can reduce the cost incurred by the issuance of bills, labor cost with omission of date administration, and possible unfair transactions entailing the payment of bills can be eliminated. And the procedures that are required to issue the bills. Eliminate unfair transactions that can possibly arise from issuing promissory notes. |
|
Currently, the government is reviewing whether to give special corporation tax preferential treatment if a purchaser uses this type of service. Materials for various reports are provided through ON-LINE or in tailored report formats. |
|
|
|
|
|
Please contact KEB Purchase Card Team (02-524-9923) for any queries.
|
|
|
|
