Commonwealth Bank of Australia (ASX:CBA) will reduce its merchant service fee for in-store payments to roughly 1% per transaction from 1.1% for customers on simple flat-rate pricing starting from Oct. 1, according to a Monday statement.
The reduction, which coincides with the removal of card surcharging from Oct. 1, makes the merchant service fee "one of the lowest rates in market," the bank said.
The change aims to help businesses better manage the cost of accepting card payments, the company added.
Its shares gained over 2% in recent Monday trade.