Hana Card targets corporate clients with dollar-pay card that cuts conversion fees

Hana Card is targeting corporate customers with its Dollar Pay corporate card, which allows companies to settle overseas card charges directly in US dollars. Companies that hold dollars can skip the won-conversion step and save roughly 1 percent in fees.

Hana Card announced Tuesday that it is offering the Dollar Pay corporate card service to meet the foreign-currency payment needs of corporate customers with overseas operations.

Under a standard overseas card transaction, a fee of about 1 percent is charged when local currency is converted into dollars, and an additional fee of roughly 1 percent applies when that amount is then converted into won.

The Dollar Pay corporate card settles overseas charges directly in dollars, eliminating the won-conversion fee. For companies that conduct frequent overseas transactions or receive dollar income, the card lets them apply existing foreign-currency holdings toward card payments, broadening their cash management options.

Hana Card is also competing near the top of the domestic corporate card market. According to the Credit Finance Association, its cumulative corporate card credit sales for the first three quarters of this year — excluding purchase-only cards and national and local tax payments — reached 13.11 trillion won ($9.91 billion), ranking third among the eight dedicated card issuers. The gap with first-place KB Kookmin Card, which posted 13.21 trillion won, is no more than 94.2 billion won.

Hana Card said it plans to strengthen its corporate card services tailored to foreign-currency payment needs, as the ways companies conduct overseas transactions and manage cash flows continue to diversify.

"We will continue to enhance our competitiveness in the corporate finance market through corporate card services that reflect the actual usage environment and financial needs of our business customers," a Hana Card official said.