Türkiye’s traders react to high credit card commissions

Bendevi Palandoken, President of the Turkish Confederation of Tradesmen and Craftsmen (TESK), has criticized the high commission fees banks charge on credit card transactions.

He emphasized that a significant portion of shopkeepers’ earnings is taken by banks through these fees.

Palandoken noted that while shopkeepers make about 3% profit on credit card sales, bank commissions often exceed 4%.

“The money that shopkeepers fail to earn ends up as commissions for the banks,” he stated. He added that the 40- to 45-day payment delay puts even more financial strain on shopkeepers. Along with other expenses like operating costs and fees for POS devices, many shopkeepers find themselves losing money on certain products.

‘Both traders, consumers should not be burdened’

He stressed the importance of finding a solution, highlighting that while official commission rates are reportedly between 2% and 2.5%, the actual rates often exceed 4%. He also pointed out that 85% of consumers in Türkiye use credit cards, yet shopkeepers see little benefit from this trend.

Moreover, an increasing number of consumers are struggling to pay off their credit card debts, with many only managing to make minimum payments. According to Palandoken, this situation places financial pressure on both consumers and shopkeepers.

TESK has raised these concerns with the Ministry of Trade and the Ministry of Finance, urging them to address the financial burden caused by high credit card commissions, operating fees, and POS device charges.

He noted that these issues affect not only small businesses but also the end consumers.

‘Fair solution must be found’

Palandoken revealed that TESK had submitted a formal request to the Banking Regulation and Supervision Agency (BDDK) to lower credit card commission rates, but they have yet to receive a response.

He pointed out the significant financial losses shopkeepers are experiencing due to these high fees. Reflecting on the past, he explained that traditional credit systems or “veresiye,” did not lead to such hardships.

However, with banks acting as intermediaries in credit card transactions and the high interest rates involved, it has become increasingly difficult for consumers to repay their debts.

He called for a balanced solution that would relieve the financial burden on shopkeepers and protect both businesses and consumers from the negative impact of high credit card costs.