Card Payments: Merchants Await to See the Color of Savings

Interchange Fee Cap Reduced from 0.65% to 0.50% Amid Merchant Concerns

As of October 1st, the cap on interchange fees has been lowered from 0.65% to 0.50%. While this reduction has been welcomed by merchants, it does not necessarily guarantee lower costs. The actual expense associated with card payments also hinges on the fees set by acquirers, which are now competing with one another.

Historically, the market has been predominantly controlled by the Interbank Monetary Center (CMI). The introduction of new operators was expected to drive prices down. However, three weeks after the new cap took effect, tangible effects are still awaited.

A Reduction That Doesn’t Tell the Whole Story

Interchange fees are just one component of the overall commission that merchants pay. Additional costs include network fees, expenses related to payment terminals, and the acquirer’s margin. In other words, a lower cap does not automatically translate into a reduced commission by the same percentage.

For small businesses, this issue is particularly significant, as fixed fees and commissions represent a larger burden on low transaction volumes. Therefore, competition among acquirers must result in clearer and more competitive offers.

What to Watch Moving Forward

The reform has altered the rules but has yet to deliver any noticeable results. Key indicators to monitor will be the trends in actual commissions charged, the number of merchants equipped to accept card payments, and the overall volume of card transactions.

The ultimate goal is twofold: to make card payments less expensive for businesses and to encourage consumers to use them more frequently. The question remains whether the opening of the market will lead to a regulatory decrease being transformed into tangible savings at the cash register.

The Decrypteur