Major Japan Credit Card Firms Eyeing Discounts after Tax Hike

Economy

Tokyo, Aug. 27 (Jiji Press)--Major Japanese credit card companies are considering deducting the amount of points earned during purchases from that of payments when they charge customers, under the government's rebate program to cushion the impact of the consumption tax hike planned in October, it was learned Tuesday.

The move will be more understandable and satisfying for users than giving shopping points at a later date in lessening the burden of the tax rate hike to 10 pct from 8 pct, pundits said.

Considering the measure are JCB Co., Sumitomo Mitsui Card Co., Credit Saison Co. <8253>, UC Card Co. and Aeon Financial Service Co.

Users of credit cards of the firms will have 5 pct deducted from payments for goods bought at small retailers. The rate of deduction will be 2 pct for purchases at franchise shops of major convenience store operators and other large retail companies.

If a person buys items worth 10,000 yen at a small local shop using a credit card of any of the companies in October or later, he or she will have to pay 11,000 yen, including tax. When charging the user, the credit card firm will deduct 550 yen, or 5 pct of the payment, and 10,450 yen will be withdrawn from the person's bank account.

[Copyright The Jiji Press, Ltd.]

Jiji Press