Banks Lower Fees for Merchants Using EDC System Under New Promotion


Banks are offering additional promotions and lower fees to merchants that use their EDC system. A partnership between six banks to lower EDC fees in an attempt to expand card acceptance and entice merchants to use the new system is a “win” for businesses.

Government Savings Bank, TMB Bank, Siam Commercial Bank, Bank of Ayudhya, Krungthai Bank and Thanachart Bank have entered into a joint partnership.

Merchants that accept debit cards issued by one of the six banks that operate EDC will pay 1.5% – 1.8% per transaction to the banks. The fee is lower than the fees charged at Thai Payment Network Co. (TPN).

Merchants accepting TPN debit cards will pay less than 1%, according to the chairman of the company Shoke Na Ranong.

The joint partnership is an effort from the banks to help merchants entice shoppers. Lower fees will allow merchants to offer special, low-priced deals that will encourage Thai consumers to open up their savings accounts. Thai consumers have been saving more and spending less as household debt levels rise.

Promotions will be offered to merchants that accept debit cards as well as merchants offering the new EDC devices at their stores.

The Bank of Thailand’s request for proposal will provide a clearer picture of what the banks’ promotions will include. The Bank of Thailand previously stated that there was too many EDCs for merchants and wanted the number to be reduced to just one or two per merchant. The decision resulted in a strategic partnership among the six banks.