High credit card fees threaten Japan's push to go cashless

Program to offset sales tax hike could be hurt as well

20190326N Credit Cards

The Japanese government aims to encourage more small retailers to accept credit cards.

TOMOMI MITOBE, Nikkei staff writer

TOKYO -- A Japanese reward points program aimed at softening the impact of this year's sales tax hike could be undermined by a jump in credit card processing fees.

The government plans to roll out a nine-month points program in October, when the consumption tax will rise to 10% from 8%. It will apply to cashless payments and include a cap on the credit card processing fees paid by retailers.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.