55
Payments Regulation in Asia
0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50%
<50 Mn yen
50-100 Mn yen
100-200 Mn yen
200-500 Mn yen
500 Mn-1 Bn yen
1-10 Bn yen10+ Bn yen Overall
Annual Merchant Revenue
Figure 20. Average Merchant Discount Rate by Merchant Annual Revenue (2019)
As demonstrated in Figure 20, the lowest revenue merchant survey respondents from the survey (of which there were 89), paid more than double the average rate of the largest revenue merchant respondents and nearly one-third more than the overall market average. In fact, the report found that there was a “statistically significant negative relationship between annual sales and merchant discount rates (the merchant discount rates were lower at the merchants with higher annual sales than at the merchants with lower ones).” 153 In addition, merchants who conducted a competitive bidding process or simultaneously evaluated multiple card acceptance offers tended to report lower costs of acceptance than those that had not. According to the survey data, the average MDR for a merchant conducting bidding or evaluating multiple bids was 2.80%, while a merchant who had not done so paid an average 3.40%, 60 basis points higher (Figure 21). This dynamic is present across all merchant sizes, indicating that access to and utilization of competing benchmarks is useful for all merchants to reduce their costs of acceptance.
153
https://www.jftc.go.jp/en/pressreleases/yearly-2019/March/SurveyonCreditCardMarketReport.pdf
Powered by FlippingBook