Franchise Owners Forced to Navigate Cash-Only Payments Amidst Credit Card Regulations

Hamburger Franchise Shop Owners Face Difficulties in Credit Card Payments

In a recent development, it has come to light that many hamburger franchise owners across the country are facing challenges while making credit card payments for goods to their head offices. Despite the current regulations allowing such payments, most companies only accept cash, and some require owners to travel to Seoul to make card payments.

Reporter Highlights the Issue

Reporter Kim Soo-young sheds light on this situation, revealing the struggles faced by these franchise owners.

Owners Forced to Travel to Seoul for Payments

As per the instructions from the head offices, hamburger franchise owners from different regions are compelled to make their way to Seoul to pay for goods using credit cards.

Offline – SBS News

Difficulty in Cash Payments

The shop owners have come forward, expressing their difficulties in making cash payments due to the large amounts involved, ranging from several million won to as much as 10 million won.

One owner reveals, “(For card payments,) we were informed to meet in person at a specified time and place. Given the circumstances, we have no choice but to comply to continue with our business…”

The Concerns Raised by the Franchisees

The head office’s reasoning for on-site payments is the high risk of financial mishaps, including fraudulent payments. However, this practice contradicts the standard franchise agreement set by the Fair Trading Commission, which prohibits the enforcement of cash payments.

Certain franchises even refuse to accept card payments due to the lack of a suitable payment system in place.

Dismal Acceptance of Credit Card Payments

A study conducted on major franchise headquarters reveals that only 12% of the 75,000 stores across 25 headquarters accept credit card payments. Shockingly, around 80% of the surveyed stores reported zero card payments.

One of the primary reasons behind this low acceptance rate is the burden of card fees that franchise owners have to bear. Many owners choose not to sign credit card franchise contracts altogether.

Action Needed to Address the Issue

It is imperative to address the abuse of power that deprives store owners of their freedom to choose payment methods. The affiliate headquarters must actively engage in negotiations with credit card companies to reduce fees. Additionally, if necessary, appropriate measures should be taken to ensure compliance.

Offline – SBS News

(Video commentary: Cho Chun-dong, Yoo Dong-hyuk, Video editing: Park Ki-deok, CG: Kim Han-gil, VJ: Park Hyun-woo)

▶ View the original article

▶ SBS News 8 – Watch the full video

<앵커>

When a person running a franchise shop pays for goods to the head office, the current regulations allow the payment to be made by credit card. However, in reality, most companies only accept cash, and there are some companies that require you to come to Seoul to pay by card.

Reporter Kim Soo-young mentioned the situation.

<기자>

Hamburger franchise owners came to Seoul from all over the country.

This is due to instructions from the head office to come directly to Seoul to pay for goods by credit card.

Offline – SBS News

There are many shop owners who have come forward because it is not easy to pay with cash because the amount is over several million won, up to 10 million won.

[장민호/햄버거 프랜차이즈 점주 (전북 전주) : (카드 결제를) 대면으로 하고 정해진 시간, 정해진 장소에서만 하라고 저희한테 통보가 왔었습니다. 어쩔 수 없이 방법이 없으니까 장사를 해야 하니까….]

The head office said it was asking for on-site payment because of the high risk of financial mishaps such as fraudulent payments, which is a clear breach of the Fair Trading Commission’s standard franchise agreement, which states that cash payments should not be enforced.

There are also franchises that do not allow card payments at all.

[프랜차이즈 점주 : (결제) 시스템 구축이 안 돼서 안 된다. 지금부터 그러면 구축을 해라. 우리 카드 좀 받아라 그랬죠. 그랬더니 안 된다, 그리고 끝이에요.]

When we checked the payment methods of major franchise headquarters, only 12% of the 75,000 stores in 25 headquarters accepted credit card payments.

Around 80% of those surveyed had ‘0’ number of card payments.

Many people don’t even sign a credit card franchise contract at all, ultimately because of the burden of card fees.

[프랜차이즈 점주 : 정말 카드를 받게 된다면 본부가, (물품) 원가에 카드 수수료를 붙일 수밖에 없다 이렇게 말했어요.]

[윤창현/국회 정무위 위원 (국민의힘) : 이에 대한 실태조사, 그리고 만일 이 부분(물품대금 카드결제)이 제대로 안 된다면 적절한 제재조치까지 검토해야 한다고 생각합니다.]

Offline – SBS News

The abuse of power that deprives store owners of their choice without any efforts by the affiliate headquarters to actively negotiate with credit card companies to lower fees must be remedied.

(Video commentary: Cho Chun-dong, Yoo Dong-hyuk, Video editing: Park Ki-deok, CG: Kim Han-gil, VJ: Park Hyun-woo)

▶ View the original article

▶ SBS News 8 – Watch the full video

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