Criticism from TESK to Banks: High Credit Card Commissions Strain Tradesmen

Bendevi Palandöken, Chairman of the Confederation of Turkish Tradesmen and Craftsmen (TESK), reacted harshly to the high commission rates brought about by the rapidly spreading use of credit cards today. Palandöken emphasized that small businesses trying to survive by operating with narrow profit margins are particularly negatively affected by this situation. It is noted that the deductions banks apply per transaction are practically melting away the tradesmen's earnings. It is stated that this situation is unsustainable and that tradesmen, who are the cornerstone of the local economy, are gradually weakening. Authorities argue that the issue must be brought to the agenda and an urgent solution must be found.

Today, consumers' heavy preference for credit cards over cash is increasingly intensifying the financial pressure on businesses. The percentage rates banks receive through intermediary institutions on all kinds of purchases have turned into a significant cost burden for small tradesmen. Many grocers, greengrocers, or small technicians lose a significant portion of their gross income earned at the end of the day to these commissions. Tradesmen who are already struggling with rising operating expenses, energy costs, and inflation find it difficult to cope with these deductions, which act as an additional burden. Therefore, there is a prevailing sense of grievance that instead of the circulation contributing to the tradesmen, it is strengthening the banks' vaults.

At the center of TESK Chairman Palandöken's statements lies the demand for the restructuring of current banking regulations in favor of tradesmen. Palandöken explicitly stated that the deduction and commission policies applied by banks must be placed on a fair basis. Protecting small and medium-sized enterprises is of great importance to prevent the disruption of market balances. Otherwise, it is thought that the chances of survival for new entrepreneurs entering the market will decrease, and existing small businesses will face bankruptcy. For this reason, TESK invites relevant state authorities and banking regulators to take concrete steps on this issue.

While completely restricting the use of credit cards within the economic cycle is not a practical solution, lowering commission rates to reasonable levels seems essential. Protecting tradesmen is an undeniable reality in terms of sustaining employment in the country's economy and keeping local trade alive. Experts note that these commission rates undermining commercial activities at exorbitant levels will also negatively affect tax revenues in the long run. Furthermore, it is predicted that with the rise of digital payment habits, this problem will grow further and affect more businesses. In this context, it is emphasized that the financial system must protect not only the banks but also the real economy and producers.

In summary, this recent move by TESK represents the common struggle of millions of small businesses in Türkiye and their effort to make their voices heard. Any regulation to be made regarding credit card commissions will directly affect the welfare level of tradesmen and their ability to stay in the market. Bendevi Palandöken's call serves as an invitation for competent boards to take up the issue and conduct a comprehensive economic assessment. Establishing a beneficial balance between banks, businesses, and consumers will allow for the existence of a healthy commercial environment. It is clear that the concrete steps to be taken regarding this issue in the future will determine both the future of the tradesmen on the street and general economic stability.