BC REDUCES COST OF DEBIT CARD FOR TRADE

The Central Bank launched a package of actions to try to reduce the cost of debit card transactions and also increase the efficiency of the means of payment in retail. The main measure limits the exchange rate that is paid by the commercial establishment credenciador to debit card issuer. According to the Circular, 3,887 this fee for debit transactions will be limited in two parameters: the average should be of up to 0.50% of the purchase amount and maximum up to 0.80%. The definition of these parameters, says the Central Bank aims to "reduce the cost of debit card for trade". In a statement, the Central Bank argues that over the past eight years this tariff increased from 0.79% to 0.82% of the transaction while the transaction discount rate fell from 1.60% to 1.45% transaction. "To ensure that there is additional reductions in those rates, the Central Bank decided to limit the level of the exchange rate," says the Central Bank in a statement. That cost, complete the note, is "crucial to the price charged the retail store (discount rate)". The measure is worth from 1st October 2018 and the BC quotes in press release that "this specific rate adjustment is practiced internationally". "With the measure, the expectation is that this reduction is passed on by the commercial establishment credenciador and down towards the consumer, through competition and also the possibility of differential pricing" CITES note from BC. The institution believes that with lower costs, debit cards should be more competitive in the market of payment systems in relation to other options, such as cash, wire transfers and credit card. If more consumers use debit cards, says BC, there is "potential for reducing cross-subsidies"-one of the reasons for the high cost of credit card interest.