PG Payment Service Terms of Use Integration and Prepaid Electronic Payment Method Legal Advisory Cases

Law firm Veat provided legal advice to a creator IT company regarding the process of reflecting and integrating payment services through a payment processing service (PG) into its platform's terms of service.

This advice focused primarily on reflecting relevant legal requirements and essential consumer protection guidelines into the terms of service, based on whether the client's transaction structure could be considered a prepaid electronic payment method, and integrating terms of service for increasingly diverse payment services. Law firm Veat thoroughly reviewed whether the client's loyalty points system could be considered a prepaid electronic payment method. Additionally, it advised that telemarketers are obligated to inform consumers of the name, type, and content of goods, the method and timing of supply (Article 13(2) (2), (2)2, and (4) of the Act on Consumer Protection in Electronic Commerce), and that when operating loyalty points (points, mileage, etc., regardless of the term) in cyber malls, conditions of use, period of use, expiration conditions, and compensation standards in case of failure to use due to the business operator’s fault must be posted in an easy-to-understand manner for consumers, and also provided clear and specific guidance methods consistent with relevant regulations for the validity period and usage period of such loyalty points, to support preventing consumer confusion and subsequent legal disputes.

If terms are managed individually, there is a possibility of conflicts or inconsistencies. To minimize such problems, we recommend integrating the terms of service. Law firm Veat analyzes the client’s business structure and service content in detail to provide integrated terms of service that prevent legal risks and increase clarity. To this end, Law firm Veat operates a systematic Legal Tune service, from business model analysis to customized form creation.

If you need assistance with drafting terms of service or legal advice, please feel free to contact Law firm Veat. Those interested in more details about this case can refer to Law firm Veat’s official blog.

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From Law firm Veat