Pouring cut card fees for early presidential political commitment

[Korea before lower cervical financial newspaper reporters] are pouring out the impeachment lay leaving only the final sentence of the early presidential elections scheduled to be getting closer, credit card merchant fee reduction commitments as citizens in the policy as part of each party. Thus, in the card industry it is concerned this commitment will be realized.

According to the first day card industry, former Democratic representative, with Moon Jae he has pledged to drastically cut last February 23 card fee to protect small business owners and self-employed part.

Jeondaepyo statement said it will cut card fees and commissions applying preferential treatment in the payment sector pharmacies, convenience stores, bakeries, etc. songgae. With 300 million won a small merchant basis from 2 billion yuan, small and medium expanding the franchise from 300 million won to 500 million won and annual sales 500 million won less preferential fee is a commitment on the part of the representative's statement before commitment lowered gradually from 1.3% to 1% is applied to medium-sized merchants to be.

Free hangukdang earlier also announced he would push for more cuts are self-employed credit card merchant fees.

Inmyeongjin free hangukdang emergency Chairman briefed the small business industry last February 16 Yeouido-site meetings resulted in the company.

Chairman of enlargement and said it would review additional cuts even lower commission rate of 300,000 cards online retailers a merchant fee of 3 billion won general ~ 5 billion won annual sales. The current cards online retailer commission is around 3.5%.

If a card is added to the fees in the industry inhadoel, it has attracted wear hard make a profit. Especially merchant fee cuts last card industry prices were falling profits.

According to last year results presentation card companies, our cards, KB Kookmin Card YoY net income were 6.4% and 10.7% decrease, respectively.

Shinhan Card and Samsung Card, one card last year, net profit is only 3% more than in 2015, 4.6%, 647% increase eoteuna would offset the costs, fees, cuts in card loans increased, such as real profit cuts dropped the crab industry the assessments.

In fact, Shinhan Card card loans last year, billings increased 11.1% to 8 trillion won the previous year. Samsung Card has generated profits shiny PG olaet four stakes. One card is an analysis that does not reflect the cost of integration and foreign currency card from a low base effect occurs.

Card Industry insiders' profits last year, the credit card companies are difficult to see that there is no fee cuts to benefits in accordance with shiny effect, "he said.

The industry says that if the fee is rather inhadoel card issuers can lead to a direction such as to reduce customer benefits.

Industry insiders' fees if the card issuer inhadoel have no choice but to reduce benefits in cost savings dimensional 'said' merchants must check the effectiveness of the practical benefits also spins "he said.



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