After FashionGo® arbitrarily altered the payment system, suspicion has sparked that it intends to take commissions from this.
FashionGo (fashiongo.net), which has been a major online platform for many apparel wholesalers, is now facing a lot of tension with Korean clothing manufacturers.
The question was posed last week when FashionGo informed its subsidiary Korean manufacturers that the whole payment system is to be changed. Originally, manufacturers could use their own card payment system based on each customer’s payment information written on fashiongo.net. However, according to FashionGo’s new payment policy, card payment will be only possible through a specific payment system called ‘STRIPE’ (offered by https://stripe.com) and every manufacturer will be urged to follow this system.
This decision is being blamed as it complicates not only the manufacturers but also the customers. What makes the matter worse is the commission charged for each card payment. VISA and Mastercard charge 0.55%p higher than industry average. American Express charge 3.8%, which is 0.73%p higher than the average. In addition, revised extra commission per a card payment runs up to 30%, which is ridiculously higher than former 8~10%. Therefore many in the industry doubt FashionGo is going to take additional profits as commission through STRIPE’s payment system. In fact, it was confirmed by the card processing industry that if one resisters itself as an extra agent, it can receive a certain percentage of card commission.
The industry calculates FashionGo’s annual turnover is already beyond a billion dollars. Its entire turnover is from card payment, and it will earn around six million dollars under the name of commission even when it can have only 0.6% of the whole turnover.
