The government will lower bank card charges for businesses ranging from retailers to property developers in order to reduce their financial burdens and boost consumption.

The move will take effect on February 25 as part of government efforts to bring distribution costs down and expand demand, said the National Development and Reform Commission on January 21.

The cuts will save Chinese businesses about 4 billion yuan ($637 million) a year.

Under the new charging scheme, catering enterprises that use card transactions will see their bank service fees drop by 35.7 percent, while those paid by department stores and supermarkets will decrease 21.4 percent and 25.7 percent, respectively.

Other types of businesses that will benefit from the change include hotels, jewelry shops, property developers, automobile merchandisers, tourist agencies and gas stations.

Card transactions that take place at public hospitals and public schools will be exempt from bank and payment network service fees.

Individual consumers will also benefit from the move, as high card charges for businesses are sometimes passed on to buyers in the form of higher product prices.