Why the current system has High Fees

KONPAY
Jun 21, 2023

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The reason why high fees occur when using the payment service is that structurally, 4 to 5 intermediate participating companies in one payment process divide and process various tasks such as authentication, settlement, and payment for payment. Take a look at the example of small business owners. They must pay a certain amount of registration fee to PG or VAN companies in order to use payment services. This registration of payment services sets the merchant fee rate, where both PG and VAN companies charge lower merchant fees to large businesses such as Amazon rather than small businesses, so small business owners have to pay higher transaction fees than large department stores or large online shopping malls.

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