Financial authorities said Wednesday the credit card commission charged on small merchants will be cut from August to help ease the financial burdens of mom-and-pop stores.
The commission rate for small merchants with annual revenue of 500 million won ($444,168) or less will be reduced by 0.64 percentage point to 1.3 percent, the Financial Services Commission said in a statement.
Currently, credit card firms charge small merchants with annual revenue of 300 million won or less a commission fee equivalent to 1.3 percent of the transaction value. From August, the commission rate for such smaller merchants will be cut to 0.8 percent, the financial regulator said.
About 455,000 small merchants are expected to benefit from the cut that will help them save about 350 billion won in commission payments, the financial regulator said.
The cut is one of President Moon Jae-in's campaign pledges. (Yonhap)