The cash payment flow under the cash receipt system shows the detailed operational
procedure for the scheme. The cash receipt network participant is a product or service
provider who has a credit card terminal with a ‘cash receipts printer’ in the workplace,
and transmits cash payment details via cash receipts service companies to the NTS.
Among these companies, since late 2004 the government has been designating
businesses that provide a product or service directly to buyers, with their total reported
annual sale of 24 million won or greater for mandatory guidance to encourage their
participation in the scheme. The person eligible to cash receipt scheme is expressed as
‘buyer’, this category includes businesses, which are issued such cash receipts as
supporting documents for business expenditures, in addition to buyers who are issued
cash receipts for income deduction purposes. Cash receipts service companies are
required to have a cash receipt machine installed in their cash receipt network
participants and give approval numbers to be borne on the cash receipts issued. Then
they should collect and transmit the details of the cash transactions to the NTS.