NBS prepares draft law on interchange fees

The National Bank of Serbia (NBS) has prepared a draft law on interchange fees and special rules for card-based transactions, the adoption of which would limit interchange fees and regulate other rules pertaining to payment cards.

These fees are a considerable part of the fees charged by the bank to the merchant for each card-based payment, the NBS says and adds that high merchant fees, the height of which is determined to a great extent by interchange fees, are one of the main reasons for retailers not to accept card payments and to allow only cash payments.

The consequence is not just a reduction in the amount of cashless payments relative to cash payments, but also a greater potential for gray economy, it is added.

The draft law envisages the carrying out of the limitation of interchange fees in two stages – a reduction of interchange fees to 0.5% for debit cards and 0.6% for credit cards in the first nine months of the implementation of the law and 0.2% for debit cards and 0.3% for credit cards in the second stage.

In addition to the proposed reduction of interchange fees in stages, which should result in the reduction of merchant fees and the expansion of the payment card acceptance network, the draft law will also considerably enhance the transparency of the fees that the acquiring bank charges to the merchant.

The National Bank of Serbia has invited citizens, experts and everyone interested to provide suggestions within the public hearing by September 20, 2017.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

draft law on interchange fees and special rules for card based transactions

interchange fees

payment cards

credit cards

debit cards

merchant fees

cashless payments

cash

gray economy