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‘Zero Pay'... zero credit card fees become a reality

Credit card transaction fees drastically reduced to nearly 0%
Higher income deduction rate than debit cards at 40%
Convenient online and offline registration


2019-01월호

Pilot testing on the new 'Zero Pay' program began on December 20, which has been developed as a convenient payment system to lessen the burden of card transaction fees for small business owners and owner-operators. The Zero Pay program is a convenient mobile payment service which has greatly reduced transaction fees for small businesses.

By signing up for the Zero Pay program, small business franchises either pay no transaction fees or see a great reduction in their transaction fees. Small businesses and owner-operated businesses with under 800 million won in sales in the previous year pay no transaction fees, while those with sales between 800 million won and 1.2 billion won pay 0.3 percent, and those with sales over 1.2 billion won pay 0.5 percent. The fees paid under the Zero Pay program are lower than the transaction fees of 0.8 to 2.3 percent that are currently being paid by small and medium-sized businesses that use other methods of payment. Another benefit of the Zero Pay program is its income deduction rate of 40 percent, which is higher than the rates for credit cards (15 percent) and debit cards (30 percent). The new program is expected to be a huge help to small businesses that previously struggled with having to pay credit card transaction fees.

Businesses that wish to become affiliates of the Zero Pay system can sign up either online or offline. To sign up online, businesses simply need to enter their name, address, contact information, and business registration number into the Zero Pay website. Business owners who are not familiar with online registration processes can enter minimal information into the Zero Pay website and request an on-site visit by a representative. To sign up offline, business owners need to fill out and submit an affiliate registration form that can be found at the public service centers of Seoul's 25 district offices, community service centers, the Seoul Credit Guarantee Foundation, and the Seoul headquarters of the KBIZ Korean Federation of SMEs.

Businesses that sign up to become an affiliate can receive a 'joint QR set'. A joint QR set consists of a QR code for payment that has the name of the business, an information board that explains how to pay using the Zero Pay program, and an affiliate sticker that can be placed on the interior or exterior of the shop.

Sellers must install the Zero Pay Affiliate App on their smartphones and sign up as a member of the Zero Pay affiliate program. To make a payment using the Zero Pay system, consumers must run the Zero Pay app on their smartphones and scan the Zero Pay QR code at an offline store. The transaction becomes finalized once the payment amount is entered and the consumer's account is checked for sufficient funds. Once the transaction is complete, the payment details appear immediately on the affiliate's smartphone. If the owner of the affiliate is not at the shop, they can receive the details of the payment via the ‘Employee Registration' feature. Under the 'Payment Details' menu on the Zero Pay Affiliate App, the affiliate can check on the status of a payment and total sales, and they can also view the details of a specific payment and approve or cancel a payment.

The Ministry of SMEs and Startups and the Seoul Metropolitan Government first implemented the Zero Pay system within Seoul and have plans to expand the program nationwide. There are currently a total of 24 organizations that are participating in the Zero Pay program, which include 20 banks and 4 convenient payment service providers. To inquire about signing up for the Zero Pay program, please call the 120 Dasan Call Center or the Zero Pay affiliate recruitment call center at the KBIZ Korean Federation of SMEs (02-3151-1200).


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