The payment card interchange fees are reflected in the MDRs that must be paid by merchants. As of now, the interchange fee for home brand debit cards is 0.15% or “50 sen + 0.01%, which-ever is lower. On the other hand, the interchange fee for credit cards is 1.10%, and would be reduced to 0.48% from Year 2021. Imposing surcharges for credit and debit card usage is likely to lead to customers paying the merchants by cash. Since there are hidden fees to be paid by merchants in accepting cash, paying the interchange fee may well be a more cost-effective and safer solution.

Source: The Star November 20, 2017 00:22 UTC