Cut in fees for credit-card payments to erode bank profits

Beijing's efforts to boost domestic consumption may weigh on banks' profits as a reduction in credit-card transaction fees will eat into their fee income.

The State Council had approved a plan to reduce transaction charges on credit-card payments, Xinhua reported on Tuesday, citing a notice issued by the People's Bank of China.

The PBOC spokesman was not available for comment.

Transaction fees on card payments would be cut by an average of 23 to 24 per cent from February 25 next year, the report said.

via Business feed http://www.scmp.com/business/banking-finance/article/1093391/cut-fees-credit-card-payments-erode-bank-profits