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Are limits imposed on commissions for card payments?
Are limits imposed on commissions for card payments?
An upper limit has been approved for interchange fees applied between participants of payment systems.
The decision was signed by the Chairman of the Central Bank of Azerbaijan (CBA), Taleh Kazimov.
It is noted that for domestic card payments, the maximum interchange rates are set for the following MCC categories:
“Drug Stores and Pharmacies” and “Grocery Stores and Supermarket” — up to 1.25% of the transaction amount
“Petrol” category — up to 0.75%
“General” category — up to 1.5%
For other MCC codes, no interchange ceiling has been defined for domestic card payments.
The decision will take effect from June 1.
Interchange is a commission applied in cashless transactions between the issuing bank (card issuer) and the acquiring bank (merchant’s bank). It is usually deducted from the merchant service fee and is also used to fund loyalty programs such as cashback.
An upper limit has been approved for interchange fees applied between participants of payment systems.
The decision was signed by the Chairman of the Central Bank of Azerbaijan (CBA), Taleh Kazimov.
It is noted that for domestic card payments, the maximum interchange rates are set for the following MCC categories:
“Drug Stores and Pharmacies” and “Grocery Stores and Supermarket” — up to 1.25% of the transaction amount
“Petrol” category — up to 0.75%
“General” category — up to 1.5%
For other MCC codes, no interchange ceiling has been defined for domestic card payments.
The decision will take effect from June 1.
Interchange is a commission applied in cashless transactions between the issuing bank (card issuer) and the acquiring bank (merchant’s bank). It is usually deducted from the merchant service fee and is also used to fund loyalty programs such as cashback.