In late May there were 673,590 active credit cards, while in the same period in 2012 there were 609,357.
The balance of active cards also showed an increase of 17% compared with May 2012, according to a Panamanian Credit Association (CPA). "The balance went from $1.1114 billion to $1.3008 billion in May 2013, which represents 3.8% of total credit balances reported in the database", reported Elsiglo.com.
Between April 2012 and the same month this year, the credit card portfolio of state banks grew by 8.5%, while among private banks the increase was 33%.
The increase in the private sector is not surprising, since Banco Promerica alone has 35 types of credit card rates, being the issuer with the most diversity in the country. The dynamism is also reflected in income from fees which the banks charge for the use of plastic, accounting for 46% of total revenues.
A comparative analysis of costs and nominal annual interest rates has been released giving details for the first week of May 2013 for credit cards and financing cards.
From information published by the Consumer Authority of Panama:
Background Information
"Credit Card: Magnetic instruments, electronic instruments or other technology related to a credit agreement contract previously concluded between a financial intermediary and another person, in order to facilitate a lease or obtain goods and services or obtaining cash from businesses affiliated to the system. "
Panamanian banks are preparing for the migration from magnetic to chip cards in an effort to reduce fraud in the country.
Although the change from magnetic to chip cards (EMV) in Panama is being applied gradually, banks such as Bac Credomatic and Banco General are already applying the finishing touches to adopting this new technology.
Amauri Castillo, advisor to the Superintendency of Banks in Panama (SBP), said that "some banks are better prepared than others and this will be a gradual process, but the important thing is that the infrastructure, at least at the level of ATMs, is now ready ".
The new Credit Card Act establishes that the users will pay interest on the outstanding balance and not on the entire amount of the original loan.
Among the reforms to the Credit Card Act, approved on its second reading by the Congress of Honduras, was the prohibition of issuers charging interest on interest. Users have to pay interest on their outstanding balance and not on all of the original loan, as was previously charged.
The Central Reserve Bank of El Salvador has announced in a statement the entry into force of the usury law on February 24.
A statement from the Central Reserve Bank of El Salvador reads:
The usury law, which aims to "prohibit, prevent and punish usurious practices, in order to protect the rights of ownership and possession of the people", entered into force on 24 February this year, informed the Central Reserve Bank of El Salvador.
At the end of 2012 a total of 7.1 million credit and debit cards were circulating in the country.
The growth compared to 2011 in the amount of "plastic" held by Costa Ricans was 21%.
Elfinancierocr.com reports that "more than 1.6 million credit cards were used to make purchases (95% of operations). Meanwhile, debit cards were used more to withdraw cash than for shopping (51% and 49% respectively of operations). "
The Congress of Honduras is analyzing lowering credit card interest rates from 60% to 30%, in a rescue plan that includes pension funds buying that debt from the banks.
The rescue plan on overdue credit cards, which uses resources from pension funds, could lead to bankruptcy for these entities, Honduran economists warn.
An advisor to the National Congress, Eval Diaz, told prensa.hn that the debt amounts to about $750 million and through a legislative decision the portfolio would be bought in addition to lowering interest rates on credit cards from 60% to 30%.
In the Guatemalan Congress of a favorable opinion was cast on an initiative to regulate the operation of the credit cards and the relationships between issuers, operators and affiliate cardholders.
Posted by the Congress of the Republic of Guatemala:
At a press conference, the president of the Committee on Economy, deputy Emmanuel Seidner, announced that an initiative was presented to Legislative assembly to approve the Credit Card Act, which aims to regulate the operation of credit cards and the relationships between issuers, operators and affiliate cardholders.
Total online purchases made in 2012, which exceeded 500,000 transactions, were up 7% on those registered in 2011.
Courier companies were surprised by the figures, which exceeded their expectations. "The market is healthy and growing each year," said Jorge Gomez, General Manager of TransExpress.
"According to Gomez, 2012 showed an annual growth of 17%, compared to the more than 400,000 transactions recorded in 2011, but the biggest move of the year came during the last week of November with Black Friday (last 23 November), and continued throughout December, peaking right at the end of the year.
The total value of purchases of goods and services made using debit and credit cards by Guatemalan businessmen during 2011 was 18% more than those of 2010.
The information comes from the Commercial Consumption Expenditure (CCE) report which looks at payments around the world and is conducted yearly by the payment technology company Visa.
Siglo21.com.gt reports that, "According to this study, which calculates spending by companies around the world, the amount of purchases made with Visa debit and credit cards in Latin America and the Caribbean (LAC) was $7.8 billion and showed an increase of 19.4% compared with 2010.
Six out of ten consumers prefer to shop for goods and services using cash, not credit cards.
For credit card payments, the percentage of consumers who use it increases the higher the income bracket, whereas overall 28% pay by card, in the case of higher-income consumers the percentage increases to 42%.
"The preference for cash is widespread and to corroborate it, in 2011 the Banco Central recorded a total of 184 million card transactions (credit and debit), but there were also 170 million withdrawals from ATMs, said Carlos Melegatti, COO of Central Banco Central.
The National Institute for the Promotion of Competition has stated that there is an agreement between banks to fix interest rates on credit cards.
The Supreme Court of Justice (CSJ) of Nicaragua annulled the resolutions issued by Procompetencia against the practice, considerer by the watchdog as abusive against consumers.
An article in Laprensa.com review the situation where on one side lies the National Institute for the Promotion of Competition (Procompetencia) and on the other the Association of Private Banks (Asobanp), whose president Juan Carlos Arguello denied that there has been are agreement over rates. He explained that behavior responds to the competition between banks, which "is strong."
Costa Rican banks have resumed the purchase of balances and debt consolidation on credit cards with lower interest rates.
With this operation, customers can pay off debts owed to other credit card issuers and have them reassigned to a single card with a lower interest rate, reducing monthly payments.
Electronic Media Director of Banco Nacional, Marco Vinicio Calderon told Nacion.com that since January 2011 the bank has purchased about $7.4 million in credit card balances.