ECONOMY

IELKA calls for drop in card commission

ielka-calls-for-drop-in-card-commission

The Research Institute of Retail Consumer Goods (IELKA) is calling for a reduction in the commission paid to banks by retailers for accepting consumer payments via credit or debit card. The institute has identified an increase in the costs to large supermarkets and smaller enterprises resulting from the rapid rise in the use of plastic money in Greece due to the imposition of capital controls.

An IELKA analysis highlights that the use of credit cards leads to greater costs for enterprises than payment in cash, amounting to 1.6-1.8 percent of sales. This commission level is on a par with that recorded abroad, ranging between 1.65 and 1.8 percent. Regarding debit cards, Greece is close to the highest level of commission taken internationally, which ranges between 0.40 and 1.70 percent. In certain cases where banks and supermarket chains have reached a deal the commission is below 0.5 percent.

IELKA argues that commissions should be reduced, in line with the trend recorded in the rest of the European Union, to facilitate card transactions. Notably, in some countries the commission from debit card use is as low as one-tenth of that for the use of credit cards.