Regulatory Alerts2015-11-13
Added · Updated
Proposed Amendments to Lower Credit Card Merchant Fees
The Financial Services Commission proposes amendments to the Enforcement Decree of the Specialized Credit Finance Business Act and the Regulation on Supervision of Specialized Credit Finance Business to lower credit card merchant fees and restrict rebates. VAN providers are barred from giving rebates to large merchants with annual credit card sales exceeding KRW1 billion, a reduction from the current KRW100 billion threshold. Merchant fees are lowered to 0.8% for small low-income businesses with annual sales under KRW200 million and to 1.3% for merchants with annual sales under KRW300 million. The amendments to the Enforcement Decree take effect by the end of June 2016, while those to the Regulation take effect by the end of January 2016.
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