The Shenzhen government has weighed into a bitter dispute over handling fees between retailers and the national card payment system provider, bringing the parties together in an effort to avert a threatened boycott of the services. Representatives from a coalition of 46 retailers and the local branch of China UnionPay were called upon to thrash out a settlement by the finance office of the Shenzhen government. Last week, the retailers threatened a two-day boycott of credit and debit-card payment from tomorrow unless China UnionPay agreed to slash handling charges. 'The ambience of the five-hour long negotiation was quite good and we will continue our discussion [today],' a source familiar with the discussions said. Both sides had softened their stance, he added. The dispute had escalated after negotiations over handling fees ended in deadlock last week. Three more retailers - China Resources Vanguard, Gome Electronics and British-based B&Q - said they were prepared to join a boycott of the payment services. The retailers are demanding transaction charges be cut to between 0.5 per cent and 1 per cent, from 1 per cent to 1.5 per cent, which would be on a par with charges in Shanghai and Beijing. The Shenzhen Retail Business Association, which represents the coalition, and China UnionPay refused to comment yesterday
