Cutting fees benefits all

Even if the State Council approved banks reducing the handling charge for swiping cards in May, Chinese banks have not yet shown any sign of reducing the fee for consumers, says an article in Beijing Youth Daily.

Many shop owners are very disappointed by the banks reluctance. The high cost of intermediary procedures is a big problem for the Chinese economy. Reducing costs is conducive to transforming China's economy and upgrading the industrial structure. Cutting the handling charge is a good starting point for the banks to promote China's real economy and domestic consumption. Reducing commodity prices can also help relieve inflation pressures.

The banks are concerned that reducing the handling charge will affect their revenue. In fact, if they offer more favors to franchise stores, which admit purchases with cards, the banks will certainly benefit because more stores will come to them. Statistics suggest that banks' income may even increase in the long run after cutting the fee. So the banks should look at the long term regarding this action.

Authorities should also supervise the banks to implement the State Council's decision as soon as possible. It will benefit all parties.