Actualization of Know Your Customer Principles by the Bank in Providing Credit Card (Credit Card) Against Customers

DOI

10.2991/978-2-38476-180-7_73How to use a DOI?

Keywords

Transaction; Customer; Bank; Know Your Customer Principles

Abstract

Banking transaction problems often occur, especially in terms of credit. As it is known that in the current era of globalization, cash is rarely used anymore for transactions, but in the form of electronic (cashless) exchanges. The process that occurs in this cashless transaction is limited to book-entry which only counts numbers. The physical form of the transaction does not exist, unless the customer withdraws cash to make a payment. In its development, cash withdrawals have other alternatives which are certainly more practical, namely by making payments using a credit card. A credit card is an identity-containing card that may be used to make payments online. The bank will automatically deduct the customer’s savings the next month in accordance with the date of the credit card purchase. However, the problem is when the funds owned by the customer in their savings are not sufficient to pay for the credit card. Based on this, the problem can be formulated, specifically the idea that you should know your consumer is actualized by banks in granting credit cards to their customers and what would happen legally if customers defaulted on their obligations. Normative legal research is conducted using statutory and conceptual frameworks. The study’s findings demonstrate how crucial it is to apply the know your customer principle because every customer has a unique character. Even those who have a solid reputation, the ability to repay debt, valuable guarantees, substantial capital, and favorable economic conditions are still susceptible to defaulting. All cardholder debts become due, can be billed, and must be paid immediately and in full at the same time under legal consequences for customers who default, namely by terminating and/or canceling and/or credit card bookkeeping without prior notification.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - I Made Aditya Mantara Putra
PY  - 2023
DA  - 2023/12/31
TI  - Actualization of Know Your Customer Principles by the Bank in Providing Credit Card (Credit Card) Against Customers
BT  - Proceedings of the International Conference on “Changing of Law: Business Law, Local Wisdom and Tourism Industry” (ICCLB 2023)
PB  - Atlantis Press
SP  - 678
EP  - 689
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-180-7_73
DO  - 10.2991/978-2-38476-180-7_73
ID  - Putra2023
ER  -