A cut in credit card processing fees is expected to help shopkeepers save about 800 billion won (US$709 million), officials said on Feb. 19, as the government seeks to ease burdens on small merchants and self-employed business owners.
Last November, the government announced a plan to reduce credit card fee rates and the cut went into effect at the end of last month.
Under the plan, credit card processing fees for small merchants with annual revenue of between 500 million won and 1 billion won was lowered to 1.4 percent per transaction from 2.05 percent, according to officials at the Financial Services Commission.
For shopkeepers with an annual revenue of between 1 billion won and 3 billion won, credit card processing fees was be cut to 1.6 percent per transaction from 2.21 percent, FSC officials said.
The cut in credit card processing fees is expected to help merchants with annual revenue of 3 billion won or less save about 570 billion won, the FSC said in a statement.
Shopkeepers with annual revenue of more than 3 billion won are estimated to save about 210 billion won from the cut, the FSC said.
By Ram Garikipati and newswires (firstname.lastname@example.org)