With the twin forces of the tough situation in retail industry and existing card charges, businesses’ profits are being battered.
People have got used to card purchasing
According to the research from CCFA, the proportion of credit card purchasing is increasing with the year-on-year growth of 30%. The domestic card spending has surpassed 16 trillion yuan (USD2.56 billion), accounting for 40% of total retail sales of consumer goods.
Card charges are divided up by 3 parties
Businesses have to bear the card charges
By regulation, businesses have to bear all card charges with the standard rates ranging from 0.5% to 4%. The costly fees result in the situation that some businesses don’t accept payments by credit cards.
Commercial banks don’t think the card charge is high in China
Some banking industry insider stressed that our domestic average card changes are not so high compared with other card changes in the world. Standing in the position of banks, they will not welcome the policies on cutting the card charges.
Data source: Beijing Times, Xinhua Report