Tourist rebound squeezes Japan credit card firms with big fees

TOKYO — As foreign tourists return to Japan after the pandemic, the country’s credit card companies could face 20 billion yen ($137 million) yearly in deficits by paying more in fees to overseas card brands and other expenses than they receive in transaction commissions.

Companies such as Sumitomo Mitsui Card and Mitsubishi UFJ Nicos operate by both issuing cards and installing card readers in restaurants and retailers to expand member stores. Known as credit card processors, these businesses generally receive around 1.9% of the transaction amount from member stores as a commission.