Central Bank Issues Basic Circular 173 Related to Setting a Ceiling on the Merchant Discount Rate
On April 28th, 2026, the Central Bank issued basic circular 173 (Basic Decision No. 13810) related to setting a ceiling on the Merchant Discount Rate (MDR). The circular states that banks and financial institutions (FIs) must not charge vendors and retailers commissions exceeding 1.25% of the value of each transaction paid through local bank card, of which a maximum of 0.9% interchange fee to be paid to the card issuer.
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