Warning to Tradesmen from TESK Chairman Palandöken Regarding Credit Card Commissions

Bendevi Palandöken, General Chairman of the Türkiye Esnaf ve Sanatkarları Konfederasyonu (TESK), stated that increasing credit card commission rates are severely victimizing tradesmen. Pointing out that credit card usage is becoming more widespread day by day, Palandöken noted that high commissions completely consume the earnings of small businesses. Emphasizing that the labor and capital of tradesmen should not be wasted on bank commissions, Palandöken stated that the current system's name is not trade, but cost. It was expressed that due to these high rates cut by banks, many small businesses suffer losses merely for selling their products. Palandöken added to his words that banks' commission rates must be pulled to reasonable levels according to the type and operation of the product sold.

Underlining that the cost created by payments made with credit cards being loaded directly onto the tradesmen's shoulders is unacceptable, Palandöken stated that this situation is unfair both commercially and humanely. It was noted that the situation has reached more critical dimensions, especially in businesses that receive daily and intense payments such as restaurants and eateries. It was emphasized that while entering with a low profit of 1 percent in some products, high VAT rates of 10 percent are applied at the exit, and the massive difference in between is paid by the tradesman. This heavy commission burden paid by tradesmen makes it difficult for businesses to survive in the short term, becoming a bleeding wound of commercial life. Palandöken argued that the cost structure of card payment systems must definitely be reorganized in a fair manner.

The prolongation of the time it takes for money to pass into the tradesman's account in daily trade brings about another major problem. Palandöken stated that the commission rates cut even in transactions paid on the same day, the next day, or fifteen days later, strip away all the earnings from the tradesman. It was pointed out that in cases where the tradesman makes a profit of only 4 percent on a product, banks demanding commissions at rates like 4.5 percent directly push businesses into loss. It was stated that within this cycle, only banks and intermediary institutions make money, while the tradesman, who is the very producer and seller, cannot obtain any income. Palandöken expressed that due to this structure, tradesmen have no enthusiasm left to do business and that this long-standing problem must now be resolved.

Stating that protecting and ensuring the profitability of tradesmen is essential to ensure the continuity of the registered economy and the tax system, the TESK Chairman announced that they regularly convey the problems regarding this issue to the Maliye Bakanlığı. He stated that in a system where tradesmen cannot obtain sufficient income, there will be no room left to pay taxes to the state, and therefore, the entire economic cycle will be negatively affected. It was emphasized that credit card commission rates have become a chronic problem debated in Türkiye for long years and unresolved, and that this situation has wearied tradesmen and, indirectly, citizens. Palandöken added to his words that intermediaries with no capital or production labor obtaining incomes exceeding the earnings of restaurants and markets cannot be an economic picture. He called for an urgent regulation that is fair and will not victimize anyone to solve the problem.

Noting that citizens have also started to feel increasingly disturbed by this situation, it was expressed that the cash shortage and unemployment in the market deepen the crisis further. The fact that tradesmen have to pay out of their own pockets because they cannot reflect the commissions on the customer poses a threat that will bring them to the point of closing their shops. Palandöken noted that the necessities brought by credit card usage, combined with these exorbitant commission practices by banks, have turned into an unsustainable cost for tradesmen. Authorities were warned that registered trade must be supported and banks must put an end to exorbitant interest and commission practices for the continuity of the system. Consequently, it is deemed imperative that this problem be solved urgently and permanently for the welfare of tradesmen and the healthy growth of the country's economy.