Local consumers are now required to pay cash instead of using credit cards when patronising eight kinds of businesses, as these businesses have been rated by banks as risky customers due to their increasingly weak ability to repay credit spending to banks.

Amid the sluggish economy, the sales operations of these kinds of businesses have been on the decline, making it increasingly difficult for them to maintain viable operations.

The eight kinds of businesses include construction firms engaged in pre-construction sales of housing units, investment and trust firms, cram schools, wedding service firms, car service firms, SPA and healthcare centres, funeral service firms, small travel agencies and dancing houses.

Banks have declined to contract with these eight kinds of operations to accept credit card spending bills signed by their customers, because they are afraid that operators of the businesses will run away after collecting money from consumers.

Bankers said once the construction firms suffer financial troubles and are unable to complete construction of houses already sold, banks may have troubles dealing with house buyers who pay down payment with credit cards.

Meanwhile, with the birth rate declining, cram schools are finding it increasingly difficult to solicit enough students and thus can hardly maintain viable operations. Accordingly, cram schools are among newcomers to the banks’ list of risky customers.

Over the past year, the number of stores that can accept credit cards has declined by at least 10 per cent or 10,000, as such stores have been rejected by banks to remain contracted.