The upper limit for interchange (service fee tariffs) applied between payment system participants has been approved.
elchi reports that the Chairman of the Central Bank of Azerbaijan (CBA), Taleh Kazimov, has signed a decision regarding this.
It is noted that for payments made within the country using payment cards under the following MCC codes (codes assigned by the acquirer to a business entity to classify its field of activity), the upper limit of the interchange applied between payment system participants is as follows:
1.25 percent of the payment amount for payments made under MCC codes belonging to the “Drug Stores and Pharmacies” and “Grocery Stores and Supermarket” categories;
0.75 percent of the payment amount for payments made under MCC codes belonging to the “Petrol” category;
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1.5 percent of the payment amount for payments made under MCC codes belonging to the “General” category.
For payments made within the country using payment cards under other MCC codes not specified, the upper limit of the interchange applied between payment system participants is not set.
The decision will come into force on June 1.
It should be noted that interchange is a commission fee applied during settlements between the bank that issued the card (issuer) and the bank that accepts the payment (acquirer) during cashless payments. These funds are usually divided by banks from the service fee (acquiring) paid by the merchant to the bank and are used for loyalty programs (cashback).