Economy

Post office to offer Visa debit cards

• Publication Date：09/22/2009
• Source： United Daily News

State-run Chunghwa Post Co. Ltd. is poised to become the largest bank-card issuer in Taiwan following the approval of its plan to offer Visa debit cards to its ATM cardholders from early October.

Hu Sheue-yun, president of Chunghwa Post, said the company’s 10 million-plus ATM cardholders will be able to upgrade to Visa debit cards free of charge. The move was greenlighted by the Ministry of Transportation and Communications and will be announced Sept. 30.

According to sources familiar with the matter, once most of Chunghwa Post’s existing ATM cardholders switch over to Visa debit cards, the company stands to profit handsomely from the lucrative bank handling and transaction fees business.

The sources added that Chunghwa Post is not content with providing debit-card services alone. Once related laws on postal savings and remittances are amended, the company will start issuing credit cards as a preparatory measure for becoming a full-service postal bank.

Chunghwa Post Visa debit cards can be used at millions of retail outlets around the world and online, wherever Visa is accepted. The first purchase made within a year of upgrading will attract a 1-percent cashback, dropping to 0.5 percent for every transaction thereafter.

Visa debit cards work in the same way as credit cards, except the purchase amount is deducted directly from the cardholder’s bank account. The new service is expected to benefit local students in terms of increased convenience and helping instill sound personal finance practices. (TYH-JSM)