Turkey's trade union TESK urges banks to cut credit‑card commissions

Turkey’s Employers’ Union of Tradesmen and Craftsmen (TESK) President Bendevi Palandöken has repeatedly called for banks to lower the commissions charged on credit‑card transactions. He argues that the fees often exceed the profit margins of small merchants, especially for low‑margin products such as cigarettes, and that early‑settlement charges further erode earnings. Palandöken says the cost is borne entirely by traders because they cannot pass the charge onto customers, and that the combined effect of high commissions and the VAT differential (e.g., 1 % input tax versus 10 % output tax) makes many businesses unsustainable. He urges that commission rates be aligned with the profit margin of each product, that bank interest and fees be reduced to reasonable levels, and that the Ministry of Finance address the imbalance. Palandöken warns that if merchants cannot survive they will be unable to pay taxes, harming the broader economy, and notes that consumers also complain about the hidden costs.