AI Payments in Korea: Consumer Liability and Refunds ==================================================== Before entrusting payments to AI, check both how your card number is protected and the purchase terms. Explanations of liability and losses after approval are based on Korean rules on the right to cancel a purchase and hypothetical examples. - Payment tokens reduce exposure of card information, but they do not prevent misunderstandings about purchase terms. - Clicking the approval button alone does not establish that the user is liable for every dispute. - Refunds for online purchases in Korea depend on the grounds for exercising the right to cancel and the restrictions that apply. - In the hypothetical flight ticket example, the difference in losses between the two fares upon cancellation is 250,000 won. - Keep your instructions to AI, the approval screen and the actual order details together. Before letting AI make card payments, set spending limits and purchase conditions. Protecting your card number does not prevent incorrect orders. Whether a refund is available after approval depends on the transaction terms and applicable law. The withdrawal periods are based on the Electronic Commerce Act effective July 21, 2026. What does AI handle in a payment? AI payment is a way for an AI agent to carry out part of the purchasing process. The agent uses external tools to place orders. How much you can actually delegate varies by service. Product recommendations and payment execution require different levels of permission. If you delegate only the search, you can make the purchase decision yourself. To delegate ordering as well, you need to separately define which actions are allowed. Scope of delegation What AI handles What to check Search and recommendations Finding options that meet your conditions Accuracy of prices and terms Order preparation Selecting options and filling out the order form Specifications, quantity, and shipping address Payment with approval for each transaction Paying for an order you have confirmed Whether the actual order matches what you approved Preauthorized payment Making purchases within a defined scope Limits on amounts, sellers, and frequency Visa describes spending limits and approval procedures as controls. However, this does not mean that all the features described are available. Check the connected service for availability. Visa Intelligent Commerce Is hiding your card number enough to keep you safe? Protecting your card number alone cannot prevent incorrect purchases. Payment information security and order accuracy are separate issues. You also need to check permissions to access personal information. A payment token is payment information that replaces an actual card number. Mastercard announced that it would introduce tokens for agents through Agent Pay. The announcement was made on April 29, 2025. Mastercard Agent Pay announcement Protection Risk it aims to reduce Issues to check separately Payment tokens Exposure of the actual card number Incorrect product selection in an authorized payment Spending limits Spending beyond the permitted amount Incorrect orders within the limit Seller restrictions Payments to unauthorized sellers Cancellation terms at authorized sellers Approval for each transaction Making purchases you have not confirmed Omissions and misreading on the approval screen Account access restrictions Unnecessary access to personal information Retention and deletion of information already shared Not all tokens are single-use. Check each service for how long tokens remain valid and how restrictions work. Do not judge safety solely by a claim that card information is hidden. Different situations involving incorrect AI purchases The grounds for addressing an incorrect purchase depend on its cause. Distinguish between ambiguous instructions and a seller's failure to fulfill the contract. Actions taken without your approval also need to be checked separately. Situation Records to check First issue to examine Buying a flight ticket with only the price specified Original instructions and fare conditions Whether refund conditions were specified An order that confuses bottles and packs of water Specifications and quantity labels Whether the ordering unit was clear Payment for a larger quantity than approved Approval screen and order form Whether the details changed after approval Delivery of a product different from the one ordered Product description and photos of the item received Whether the seller fulfilled the contract Payment to an unauthorized seller Permission settings and execution logs Whether the action exceeded the permitted scope Malicious instructions on external webpages can also change what an agent does. This is called prompt injection. OWASP describes instruction manipulation through external documents as a risk. OWASP AI Agent Security These attacks are a problem even if your card number is not exposed. This is because the agent's legitimate permissions can be misused. That is why settings that narrow the permitted scope are needed. Does clicking the approval button settle responsibility? An approval record alone does not settle all questions of responsibility. What was displayed and what you agreed to are relevant evidence. You also need to check whether the actual order matched what you approved. Article 7 of the Electronic Commerce Act requires procedures for confirming and correcting orders. Part of the provision reads as follows. Procedures necessary to confirm or correct those details shall be established. The quoted document is the Act on the Consumer Protection in Electronic Commerce. You can find the original text of Article 7 at the National Law Information Center. Article 7 of the Electronic Commerce Act Article 109 of the Civil Act provides for the cancellation of a declaration of intent involving a material mistake. However, cancellation is restricted if the person was grossly negligent. Simply failing to read the screen is not enough to reach a conclusion. Article 109 of the Civil Act The Supreme Court assesses gross negligence based on the specific circumstances. The type and purpose of the act are among the factors considered. This means that individual records also need to be checked for AI purchases. Supreme Court ruling of April 27, 2023 Ask the seller to confirm the order details and fulfillment of the contract. Ask the AI operator how the execution came to differ from your instructions. Check with the card issuer about the dispute process for the transaction. These distinctions identify the issues to raise with each party. They do not automatically establish any party's obligation to pay compensation. A review of the applicable law and contract terms is needed. Refund conditions for domestic online purchases Domestic online purchases may be subject to withdrawal provisions. Withdrawal is a system that allows you to withdraw your agreement to purchase under certain conditions. It is not ruled out simply because AI placed the order. The usual withdrawal period is within 7 days. In principle, the period starts on the day you receive the contract terms in writing. If the goods are supplied later, it is calculated from the day you receive them. Article 17(1) of the Electronic Commerce Act Situation Period or restriction Return costs Lawful withdrawal due to a change of mind Within 7 days in principle Paid by the consumer Fulfillment that differs from the advertisement or contract Within 3 months of supply and within 30 days of becoming aware of the discrepancy Paid by the seller A significant decrease in value due to use Withdrawal may be restricted First check whether withdrawal is allowed A decrease in value over time that makes resale difficult Withdrawal may be restricted Check each transaction Opening packaging to inspect the contents Opening alone cannot justify a blanket restriction Determined by the reason for withdrawal Additional requirements, such as notice, may apply to restrictions on withdrawal. Do not judge custom-made products by their label alone, either. Check the specific production conditions and the details of prior consent. Article 17 of the Electronic Commerce Act Even if AI chooses the wrong quantity, it may not be a delivery error by the seller. Check whether the seller shipped what was ordered. Return costs depend on the reason for withdrawal. Article 18 of the Electronic Commerce Act Refund rules for flight tickets and overseas purchases For flight tickets, you need to check both the fare conditions and applicable law. Legal protection does not disappear simply because the ticket is for a specific date. The enforceability of a nonrefundable label also requires separate review. The Korea Fair Trade Commission has required airlines to correct nonrefundable terms. This makes it difficult to determine refund eligibility from the wording alone. Check the ticket's terms for the actual cancellation charges. Korea Fair Trade Commission announcement on corrections to airline terms What to check Details to check Airline fare rules Fees by cancellation timing and refundable items Booking agency terms Separate fees and how to submit a cancellation Additional services Refund conditions for baggage and seat fees Reason for cancellation Whether it is a personal schedule change or a flight cancellation Accommodation bookings Conditions based on the stay date and the date the cancellation is submitted A foreign website is not necessarily governed only by foreign law. The Private International Act includes provisions that consider protections in the consumer's country of residence. Whether domestic protections apply needs to be checked for each transaction. Article 47 of the Private International Act Calculation examples: actual losses on flight tickets and bottled water The price difference and the difference in losses after cancellation are calculated differently. The amounts below are hypothetical examples to help explain. They are not actual selling prices or guaranteed refunds. Canceling a flight ticket The difference in cancellation losses for the hypothetical tickets is 250,000 won. The purchase price difference between the two fares is 50,000 won. The difference in refund conditions makes the difference in losses larger. Item Fare with restricted refunds Fare refundable after a fee deduction Amount paid 310,000 won 360,000 won Amount returned upon cancellation Assumed to be 30,000 won in taxes and other charges Assumed to be 330,000 won Loss after cancellation 310,000 won - 30,000 won = 280,000 won 360,000 won - 330,000 won = 30,000 won Difference in losses between the two fares 280,000 won - 30,000 won = 250,000 won Same basis of comparison If you take the trip as planned, the lower fare is 50,000 won cheaper. If you cancel under the assumed conditions, the higher fare results in a smaller loss. If your schedule might change, compare the costs after cancellation as well. Confusing the ordering unit for bottled water 1 pack of 6 bottles and 6 packs contain different total quantities. Here, the assumed price is 6,900 won per pack. The remaining 5 packs are assumed to be returnable. Item Calculation Intended quantity 1 pack of 6 bottles, 2 liters each Quantity ordered by mistake 6 packs × 6 bottles = 36 bottles Initial payment 6,900 won × 6 packs = 41,400 won Value of goods to be returned 6,900 won × 5 packs = 34,500 won Assumed return shipping fee 5,000 won Refund after deducting shipping 34,500 won - 5,000 won = 29,500 won Final spending 41,400 won - 29,500 won = 11,900 won The final spending includes the 1 pack of bottled water you kept. This calculation means spending 5,000 won more than the purchase you originally needed. Check the seller's return terms for the actual shipping fee. When is a chargeback possible? A chargeback is a dispute process in which you ask your card issuer to reverse a transaction. A request alone does not guarantee a refund. The outcome depends on the reason for the dispute and the evidence submitted. The Korea Consumer Agency lists nondelivery and failure to issue a refund among situations where chargebacks can be used. You may need transaction receipts and records of communication with the seller. Check the filing deadline with your card issuer for each transaction. (Verified value: within 120 days of the card payment date, sales slip receipt date · Source: kca.go.kr · Verified 2017-11-17) Korea Consumer Agency guide to chargebacks Dispute situation Materials to prepare What to check Goods not delivered Order form and delivery tracking records Promised delivery date Promised refund not issued Records of the cancellation submission and refund promise Promised refund date Transaction differs from what was approved Approval screen and actual payment details Differences in amount and seller Dissatisfaction with an approved product Product terms and purchase records Withdrawal or cancellation rules Cancellation may be difficult if you approved the purchase knowing it was nonrefundable. The Korea Consumer Agency also explains this in its guidance on flight tickets. Do not expect a refund simply because AI made the selection. Korea Consumer Agency precautions for buying flight tickets How to compare the approval screen with the actual order Set up a process to check whether the actual order matches what you approved. Saving only the confirmation screen may cause you to miss differences in the final execution. It is useful to keep linked records from the original instructions through to the order form. Write down your purchase conditions, including specifications and units. Before payment, check the product, quantity, total amount, and cancellation terms. Save the approval screen along with the transaction time. Compare the seller's order confirmation with what you approved. If there is a difference, stop further actions and make an inquiry. Record What it can establish Original request Intended purchase conditions Permission settings Scope of authority granted to AI Approval screen What you personally checked and agreed to Seller's order confirmation Transaction actually concluded Card statement Amount charged and merchant Cancellation request records When you communicated your intent to cancel For a flight ticket request, you can specify the cancellation fee you are willing to accept. For bottled water, distinguish between the number of bottles per pack and the number of packs to order. You can also set it to request approval again if conditions change. OWASP recommends limiting execution permissions and logging actions. A natural-language request alone does not guarantee that all restrictions will be enforced. Check the settings the service actually enforces. OWASP AI Agent Security Common mistakes with AI payments Do not confuse revoking payment permissions with canceling an existing order. An order already placed may remain valid even after you revoke permissions. You need to check the outcome of the seller's cancellation process separately. Misconception Fact to check Hiding the card number also ensures an accurate order Information protection and product selection are separate issues Approval eliminates all refund rights Statutory withdrawal rights and transaction terms need separate review Opening the packaging always makes returns impossible The purpose of opening and the condition of the product must be distinguished Domestic law does not apply to foreign websites Applicable law needs to be reviewed for each transaction Disabling a token also cancels the order Payment permissions and the sales contract must be handled separately Requesting a chargeback results in an immediate refund The card issuer must review the dispute If a problem arises, communicate your intent to cancel to the seller in a recorded form. You can ask the AI operator to preserve execution logs. If you suspect an unauthorized transaction, notify your card issuer immediately as well. FAQ Q. Is it okay to enter my credit card number directly into an AI? A. Rather than entering card details in a regular chat window, check the dedicated payment integration method. You need to review how card details are handled and the extent of the AI's access. Q. Are all payment tokens single-use? A. Not all payment tokens are single-use. You need to check the validity period, spending limits, and how to disable them for each service. Q. Does clicking the approval button make me responsible for all of the AI's mistakes? A. Approval alone does not determine all liability. You need to check whether the displayed terms match the actual order. Applicable laws and the business's obligations must also be considered. Q. Can I return an item within 7 days even if the AI ordered it by mistake? A. If South Korean e-commerce law applies, you can consider the standard right to withdraw from a purchase. You need to check when the withdrawal period begins and the grounds for restrictions for each type of product. As a rule, consumers bear the cost of returns due to a change of mind. Q. Does opening the product packaging make it impossible to withdraw from the purchase? A. Opening the packaging solely to inspect the contents does not automatically restrict your right to withdraw from the purchase. You need to check the specific grounds, such as whether use has significantly reduced the item's value. Q. If an airline ticket says it is nonrefundable, is there nothing I can do? A. You cannot judge based on the wording alone. Check the fare rules, the timing of cancellation, and applicable laws together. Refundable taxes and separate fees also need to be checked. Q. Will buying an airline ticket that is 50,000 won cheaper mean losing an extra 250,000 won? A. Not always. In the example, the cancellation losses are 280,000 won and 30,000 won, respectively. The difference between the two losses is 250,000 won, and actual transactions require a separate calculation. Q. Can I request a chargeback on the grounds that the AI made the choice? A. The fact that the AI made the choice does not, by itself, entitle you to a refund. You need to explain the actual grounds for the dispute, such as non-delivery or failure to issue a refund. Check with your card issuer about filing deadlines and required documentation. Q. If I revoke the AI's payment authorization, will my existing reservations also be canceled? A. Revoking authorization and canceling a reservation are separate processes. Request a cancellation from the seller and confirm the status of your request. Q. What should I save in case of an AI payment dispute? A. Save your initial instructions, the approval screen, and the seller's order form together. It also helps to keep your card payment records and records of cancellation requests. Sources - Visa Intelligent Commerce: https://www.visa.com/en-us/solutions/intelligent-commerce - Mastercard Agent Pay announcement, April 29, 2025: https://newsroom.mastercard.com/news/press/2025/april/mastercard-unveils-agent-pay-pioneering-agentic-payments-technology-to-power-commerce-in-the-age-of-ai - OWASP AI Agent Security Cheat Sheet: https://cheatsheetseries.owasp.org/cheatsheets/AI_Agent_Security_Cheat_Sheet.html - Article 7 of the Act on the Consumer Protection in Electronic Commerce: https://www.law.go.kr/LSW/lsLinkCommonInfo.do?chrClsCd=010202&lsJoLnkSeq=1031805975 - Article 109 of the Civil Act, declaration of intent made by mistake: https://www.law.go.kr/LSW/lsSideInfoP.do?docCls=jo&joBrNo=00&joNo=0109&lsiSeq=284415&urlMode=lsScJoRltInfoR - Supreme Court decision of April 27, 2023, in case 2017다227264: https://www.law.go.kr/LSW/precInfoP.do?precSeq=234695 - Article 17(1) of the Electronic Commerce Act, period for withdrawing an order: https://www.law.go.kr/LSW/lsLinkCommonInfo.do?chrClsCd=010202&lsJoLnkSeq=1031805923 - Article 17 of the Electronic Commerce Act, withdrawal of orders and grounds for restrictions: https://www.law.go.kr/LSW//lsSideInfoP.do?docCls=jo&joBrNo=00&joNo=0017&lsiSeq=282793&urlMode=lsScJoRltInfoR - Article 18 of the Electronic Commerce Act, refunds and return costs: https://www.law.go.kr/LSW//lsSideInfoP.do?docCls=jo&joBrNo=00&joNo=0018&lsiSeq=282793&urlMode=lsScJoRltInfoR - Fair Trade Commission, correction of no-refund terms used by AirAsia X and other airlines: https://www.korea.kr/briefing/policyBriefingView.do?newsId=148762304 - Article 47 of the Act on Private International Law, consumer contracts: https://www.law.go.kr/LSW/lsSideInfoP.do?docCls=jo&joBrNo=00&joNo=0047&lsiSeq=238791&urlMode=lsScJoRltInfoR - Korea Consumer Agency, guidance on using credit card chargeback services: https://www.kca.go.kr/home/sub.do?menukey=4002&mode=view&no=1002572549&page=53 - Korea Consumer Agency, exercise caution when buying airline tickets on Kiwi.com: https://www.kca.go.kr/smartconsumer/sub.do?menukey=7714&mode=view&no=1003498910&page=58 Images - A man in a sweater kneels in a home entrance, examining several multipacks of bottled water spread across the floor.: https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MzE3NDEsInB1ciI6ImJsb2JfaWQifX0=--909441604054eebaf8907ea9f3f2accafd2e3d53/ai-9a228a10.webp - A woman puts folded clothes away beside an open suitcase and a tablet displaying a flight cancellation symbol.: https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MzE3NDcsInB1ciI6ImJsb2JfaWQifX0=--8aa8bc9ecdd75977d5d96b7409b6848e803da05e/ai-c1d420d8.webp --- Category: AI Data Source: https://injoys.com/en/articles/ai-agent-card-payments-korea-refunds-and-liability License: cc_by Translation-Status: reviewed