Card payment commission limits to be introduced in Azerbaijan

As reported by BAKU.WS with reference to Oxu.Az, the corresponding decision was signed by the Chairman of the Central Bank of Azerbaijan (CBA) Taleh Kazimov.

According to the decision, maximum interbank commission rates have been established for domestic bank card payments under the following MCC codes (codes assigned to merchants for the classification of their activities by the acquiring bank):

- "Pharmacies" and "Grocery stores and supermarkets" - 1.25% of the payment amount;

- "Gasoline" - 0.75%;

- "General goods and services" - 1.5%.

For other MCC codes not included in the list, no upper interchange limit has been set for domestic card transactions.

The decision will come into effect on June 1.

It should be noted that interchange is a commission fee applied in cashless transactions between the card-issuing bank (the bank that issues and services the client's bank card) and the acquiring bank (the bank that accepts payments at merchant locations). This amount is usually distributed between the banks and is included in the service fee paid by the merchant to the acquiring bank, and is also used to finance loyalty programs (cashback).