Merchant commission is the fee that the merchant needs to pay to the bank when the cardholder chooses to use the bank card for settlement, that is, the settlement fee paid by the special acquiring merchant to the issuing bank and card issuing institution, which is a very important part of the bank card business income.
POS machines installed by merchants are generally provided by UnionPay commercial banks (such as industry, agriculture, China and construction), and UnionPay has set different charging standards according to different industries.
Extended data
Since 2005, the tax rebate rate for hotel and catering business has been reduced from 3% to 2.2%, and now it is 1.8%, while the tax rebate rate for retail business has been reduced from 0.8% to 0.5%.
According to a previous research report of ICBC, in the early stage of credit card business development, annual fee and merchant commission income dominated, but when the business developed to a certain stage, the interest income formed through asset business gradually increased.
For example, in the United States, where credit card products are relatively mature, interest income accounts for 25% of the total profit in the early stage of credit card development, merchant commission accounts for 30%, and the remaining 45% is attributed to annual fees and other income.
In today's mature market, asset business has become the main source of credit card profits in the United States, with interest income accounting for 70%, merchant commission and other income accounting for 15% respectively.
However, the established credit card model has met with acclimatization in China. Between scale and benefit, most domestic banks put scale in the first place, and the surge in credit card issuance in the past few years is a direct manifestation of "staking the land". And the cost of this "crash" makes all the income models that were originally feasible at this stage ineffective.
References:
People's Network-Decryption of Credit Card Income: Annual Fee, Interest and Rebate.