Exclusive: China Seeks Cut in Foreign Card Transaction Fees to Encourage Usage

00:00

00:00/00:00

Listen to this article 1x

Since last year, the Chinese government has been pushing to make payment methods more convenient for foreigners, including increasing the acceptance of foreign bank cards. Photo: VCG

China is calling on global bank card clearing institutions to cut their fees on transactions made on the Chinese mainland using overseas cards, in an attempt to remove a major obstacle to the government’s intensifying efforts to make it easier for foreigners to make payments.

The Payment and Clearing Association of China (PCAC), a self-regulatory organization overseen by the central bank, has held discussions with international bank card issuers on pushing the fees local merchants are charged for foreign card transactions down to a rate of around 1.5% of the transaction value from the current range of 2% to 3%, Caixin has learned from sources with knowledge of the matter.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China is urging global bank card clearing institutions to reduce transaction fees for overseas cards on the mainland from 2-3% to around 1.5%.
New fee rates are expected by July, as part of efforts to make foreign cards more accepted and improve payment convenience for foreigners.
Visa and MasterCard announced plans to lower fees to support the initiative, responding to guidelines from the State Council.

AI generated, for reference only

Who’s Who

Visa: Visa, one of the major international card issuers, announced plans in April to reduce foreign card transaction fees in China. This effort aims to lower costs for retailers accepting foreign cards on the mainland, facilitating easier transactions for overseas visitors and aligning with China’s regulatory push to make payment methods more convenient for foreigners.

MasterCard: MasterCard, one of the two major international card issuers, announced plans in April to reduce foreign card transaction fees. This move aims to lower costs for retailers accepting foreign cards on the Chinese mainland, supporting the Chinese government's push to make payment methods more convenient for foreigners.

AI generated, for reference only

What Happened When

Since last year：: The Chinese government started pushing to make payment methods more convenient for foreigners.

Tuesday：: PCAC published a letter urging international card organizations to facilitate domestic payments for foreigners and implement fee reductions.