70% of consumer spending is done using cash, 11% with other means of payment, 8% using debit cards and 7% by credit card.
Only 15% of commercial transactions in Costa Rica are made using debit or credit cards.The State of the Nation points out that although 14% of upper management "... has access to credit cards, payments made by that means only represent 7% of their resources used for consumption."
Cash is the most frequently used method of payment, compared to the use of credit cards, debit cards and electronic transfers.
The results of the study prepared by the Central Bank indicate that 95% of individuals and 94% of establishments with economic activities, used cordobas.Only 4% of natural persons and 7% of establishments with economic activities use dollars.
The bill against tax fraud authorizes the Ministry of Finance to return up to 1% of sales tax paid by final consumers.
The return of that percentage, which would be a maximum of 1% of the general sales tax, would be subject to ranges and types of trading activity, as explained in the Bill to improve the fight against tax fraud.
In April 2016 the balance of the credit card debt was $1.688 billion, 15% more than in the same period in 2015.
From a statement issued by the Ministry of Economy, Trade and Industry:
The study with a cut off date of April 30 determined that the balance of debt is 908.149 million colones ($1.688 billion) (3.02% of GDP), which represents an increase of 1.27% compared to the previous study (January), while the yoy increase was 15.4%.
The business sector is opposed to a bill which aims to regulate interest rates on bank and nonbank loans, including credit cards.
In the opinion of the private sector the usury bill that is being promoted by the executive branch "... contradicts the laws governing financial activity."This is the view of the Honduran Council of Private Enterprise (COHEP), who presented several comments on the text to the Presidential House and Congress .
Loans at lower rates and better terms than loans with credit cards explain part of the interannual drop of 9% in total plastic cards circulating in the country in March 2016.
Data from the National Banking and Insurance Commission (CNBS) indicates that the number of credit cards in circulation fell from 905,007 in March 2015 to 822,278 in the same month in 2016. Factors such as high interest rates charged by issuers of plastic cards and access to other sources of financing with more flexible conditions explain part of the decline in business credit through cards.
The Superior Court has ordered the temporary cancellation due to lack of a ruling from the Bank of Guatemala, and the fact that Congress gave approval without having a majority, as stipulated by law.
The Constitutional Court (CC) has provisionally suspended the Credit Card Act, which came into force on March 8. Gloria Porras, president of the CC, told Prensalibre.com that one of the major failings was that Congress did not pass the Law with 105 votes, which is defined as a majority.
On the same day of its entry into force, the employers' union filed a constitutional motion against it, arguing that it adversely affects the freedom of the financial market.
For the second time a motion has been filed to temporarily suspend the enforcement of the law, with arguments once again made that the relevant processes were not followed and that its application will have adverse effects on the Guatemalan financial market.
Unconstitutionality lawsuits filed by banks and the Association of Payment Card Issuers may postpone the enforcement of the law, which was scheduled for March 2015.
The actions claiming unconstitutionality argue that when approving the controversial law, Congress did not follow the relevant processes, including the inclusion of the opinion of the Monetary Board on the part of representatives.
Ferris & Associates is a boutique law firm specialized in Business Law, Litigation and Conflict Resolution and Foreign Investmente, as well as, providing personalized services.
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Barrantes & Associates is a full service Costa Rica Law firm located in San Jose Costa Rica. We have been in business since 1999.
All our Attorneys are English speaking.
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Phone: (506 ) 2256 3807 - (506 ) 8339 1622