〇 Let's read the materials of the Ministry of Economy, Trade and Industry! Read the 2nd Environmental Improvement Study Group for Further Promotion of Cashless Payments to SMEs ①
Nov 11, 2021
I think I'll do it because it will also be my social study.
(From 2021/10/18 new information from the Ministry of Economy, Trade and Industry council / study group)
table of contents
1. Review of the first discussion
2, Cost structure for credit card, electronic money, code payment
3, Draft plan well known to consumers
4, Progress of verification at stores related to cashless payment
Let's start with a review of the first discussion. I will look up technical terms in the materials, words that I do not understand, and parts that I am concerned about, supplement them, and read on. The main opinions from committee members are as follows.
Member of the payment service provider side
●Whether or not the cost is considered appropriate depends on the standpoint of the store or business operator. As a premise, since cost reduction is essentially entrusted to competition among business operators, at the very least, moves that impede healthy competition should be avoided.
● In the examination, it would be helpful if there was a balance structure of overseas issuer/acquirer as a model, on the premise that the business practices are different.
● It is desirable to deepen the understanding of the interchange system, and to promote the understanding of the parties concerned about the fact that there are transactions that do not involve interchanges. Overall, it is meaningful to develop an environment in which merchants can freely select payment providers and services.
●Since cost is an obstacle to the introduction of franchised stores, the current situation should be clarified, and discussion should take into consideration the situation of the industry as a whole.
word supplement here
☆What is an issuer?
A card issuer. For example, we obtain usage licenses from international card brands such as Visa, American Express, JCB, Diners Club, etc., and issue credit cards with international brands to consumers. (It seems that 0.05% of the settlement unit price is paid to the international card brand as a usage fee.)
Issuers have three main roles. The first is issuance of credit cards. The second is card member management and collection of card usage fees. The third is credit management for fraudulent use of cards.
It is a member store contract company. For example, it is to have stores such as shopping districts enter merchants that can settle with international card brands. (The merchant pays about 3.25% of the settlement unit price as a merchant fee.)
Acquirers have three main roles. The first is an increase in the number of member store contracts. The second is the credit screening and management of member stores. Third, the issuer collects the payment from the card user when the card payment is made. The Acquirer receives collection proceeds from the Issuer and pays them to the Merchant. (At that time, the acquirer pays the issuer an interchange fee (approximately 2.3% of the settlement unit price). It is probably a fee for collecting payment from the card user.)
In the first installment, it seems that there was such an opinion from the payment service provider side. For me, it was fun to understand the meaning of terms such as issuer, acquirer, interchange fee, and the flow of credit card fees.
I will end here for now.
Next time, I will talk about the main opinions of the introduction side of the payment service.
Thank you for reading.