Banking Cards: Objections to Commission Regulation

Not considering the costs of the collection process, nor market conditions, are some of the failures that banks identify in the bill being discussed in the Legislative Assembly of Costa Rica.

Monday, July 22, 2019

In December 2018, a proposal was presented in the country that seeks that the Central Bank of Costa Rica and the Commission to Promote Competition, set a single percentage in the commissions that businesses pay for accepting credit or debit cards.

This is bill 21.177, which would determine the percentage of exchange and acquisition commissions for purchase transactions with credit and debit cards, based on alleged technical criteria and practices of other countries.

You may be interested in "Credit Cards and Regulation"

Reinaldo Herrera, director of finance at the National Bank, explained to Nacion.com that the bill "... does not make any consideration with respect to the costs of the process. It refers to reference countries, but does not examine in depth the specific conditions of their markets, which would allow us to have elements of judgment to support a comparison."

Federico Chavarría, deputy manager of Business at Banco Promerica, said he thinks that "... the objective sought by the bill benefits only one sector and does not consider many important aspects of the ecosystem, in addition, disrupts the order that has not prevailed for many years and could harm the entire system, the same businesses and definitely, tax collection."

The bill is currently in the mandatory consultation stage in the Economic Affairs Commission of the Legislative Assembly.

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Credit Cards and Regulation

February 2019

Limiting the fees charged in Costa Rica and establishing a law that defines market limits in Guatemala are part of the attempts being made in the region to regulate the use of credit cards.

A law proposal presented last January before the Legislative Assembly of Costa Rica, aims to regulate the percentage of the commission paid by businesses for credit or debit cards.

Commission Regulation for Card Payments

January 2019

In Costa Rica, the Central Bank and the Commission to Promote Competition are proposed to set a single percentage in the commissions paid by businesses for accepting credit or debit cards.

Law 21.177, which aims to empower the government to regulate the commissions charged by financial institutions to businesses, was presented to the Legislative Assembly by several deputies.

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