Interchange fee on noncash payments reduced in Azerbaijan


November 24, Fineko/ The Central Bank of Azerbaijan (CBA) has taken a decision to cut interchange fee on interbank transactions.

The CBA reports that interchange fee is a charge paid by bank card serving credit institutions pay to each other in the process of transactions.

"In compliance with the CBA’s decision, the interchange fee on products of non-premium payment cards (Visa Electron, Visa Classic and Maestro, Debit MasterCard Standard and MasterCard Standard) has been changed in accord with the requirements of the market. The interchange rates on mobile phones have been reduced by 26% to 1%, on food shops and supermarkets, by 61% to 0.5%, pharmacies and medical drugs by 78% to 0.3%, on automated refueling stations by 78.5% to 0.3%, on e-commerce transactions by 16% to 1.3%. Interchange fees on transport operations and state payments have been cut to 0.1%," the CBA said in a statement.

The new interchange fees came into effect starting from 20 November.