A group of Chinese regulators and the country’s central bank jointly ad On Friday, starting September 30, they will cut fees totaling about $ 3.7 billion a year that particularly affect small and micro businesses.

The directive “further guides the payments industry to shift profits to the real economy, reduces operating costs for market entities and optimizes the development environment for the real economy,” says a Google Translate version of the directive. ‘ad.

One change: Authorities will ask commercial banks to waive account management fees for small businesses, including very small transactions, and also eliminate transaction settlement fees.

Another change, as described by Google Translate, is to reduce the transfer (remninbi) and remittance processing fees for transactions under 100,000 yuan, or about $ 15,496. The People’s Bank of China – the country’s central bank – is also asking clearing agencies to implement discounts on certain transactions.

In addition, authorities are ordering commercial banks to waive certain fees, such as those related to processing checks, for small businesses.

Finally, the authorities have asked parties involved in processing debit and credit card transactions to reduce fees for small businesses by 10%. The directive states: “For the preferential banking service charges of issuing merchants, the network service charges will continue to be reduced by 7.8% based on the current government guide price. Acquiring institutions should simultaneously reduce acquisition service fees for merchants. , and effectively transfer the benefits of card issuing banks and bank card clearing institutions to merchants. “

The duration of fee changes varies from 3 years to “long term”, in the language of Google Translate.

The guidelines call on commercial banks and certain other entities, in the words of Google Translate, to “conduct a full self-examination of payment processing fees and seriously clean up repetitive, bulk and non-substantial service fees” and added, “Commercial banks and payment institutions should not increase the costs of processing disguised payments by adopting methods such as increasing first then decreasing, passing costs etc.

Regulators have also called for more disclosure of the fees.

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