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- Allocation Rate of Credit Card Merchant Fee Disclosed
Allocation Rate of Credit Card Merchant Fee Disclosed
June 1, 2023
Joint Press Release with the Japan Fair Trade Commission
The allocation rate of its credit card merchant fee was disclosed by an international brand.
1. The Japan Fair Trade Commission (JFTC) released a Report on a Survey of Credit Card Transactions on April 8, 2022. Furthermore, in FY2020 and FY2021, the Ministry of Economy, Trade and Industry (METI) held meetings of the Study Group on Developing the Environment with a View toward Furthering the Spread of Cashless Payments among Small and Medium-Sized Stores, and announced a report on the findings of the study group on March 22, 2022.
A notable conclusion drawn in these two reports is as follows:
- In order to ensure fair competitive conditions among international brands in the credit card issuance market and raise the transparency of the credit card market as a whole, international brands should ideally disclose their average issuer fee rates.
2. In light of the above, the JFTC and METI have been progressively working toward the disclosure of average issuer fee rates by international brands. In response, JCB Co., Ltd. has disclosed the allocation rate of its credit card merchant fee between the issuer and the acquirer as below.
3. Disclosure of allocation rates of credit card merchant fees has the effect of uncovering the current situation of a system for allocating merchant fees between issuers and acquirers, which is similar to the effect the disclosure of the average issuer fee rates will bring about. This disclosure of the allocation rate is considered conducive to uncovering part of the fee system involving cashless payments and improving the transparency of the market as a whole.
4. The JFTC and METI will continue to work on developing a competitive environment in relation to credit cards.
Related Links
- Standard Rates for Credit Card Interchange Fees Will Be Disclosed (September 14, 2022)
- Standard Rates for Credit Card Interchange Fees Disclosed (November 30, 2022)
Division in Charge
Cashless Payment Promotion Office, Commerce and Service Industry Policy Group