SEOUL– The government will cut credit card processing fees for small merchants to ease their burdens amid the COVID-19 crisis, the ruling Democratic Party said Thursday following its meeting with financial authorities.
The commission rate for small merchants with an annual revenue of below 300 million won (US$252,550) will be lowered from 0.8 percent to 0.5 percent, according to Rep. Kim Byung-wook of the DP.
For small business operators with an annual revenue between 300 million won and 500 million won, the rate will go down from 1.3 percent to 1.1 percent, while the rate for those in the 500 million-won to 1 billion-won revenue bracket will be reduced from 1.4 percent to 1.25 percent.
The DP said the cut would affect 96 percent of credit card affiliated shops in the country and reduce their card transaction handling fees by about 470 billion won in total.
Source: Yonhap News Agency