Central Bank Limits Commissions Payable By Merchants
Banking & Finance
The Central Bank of the Republic of Turkey (the “CBRT“) amended the Communiqué on Deposit and Loan Interest Rates and Profit and Loss Participation Rates for Participation Accounts and Benefits Provided From Loan Transactions Other Than Interest (the “Amendment“). The Amendment was published on the Official Gazette No. 30920 dated October 16, 2019 and will enter into force on November 1, 2019.
- Pursuant to the Amendment, banks will not be able to freely determine the commission rates they apply to merchants that executed a merchant agreement (the “ Merchant(s)).
- Accordingly, banks will apply a maximum commission rate of 1.60% to the purchases of goods and services, provided that the transaction fee is transferred to the Merchant on the day after the transaction.
- Moreover, if the transaction fee is not transferred to the Merchant on the day after the transaction, the commission rate will be decreased by considering the monthly rate of 1.60%, as well as the number of days that passed from the transaction day until the day on which the transaction fee is transferred to the Merchant.
- If the purchase of goods and services will be paid in installments, the above-mentioned rate may be increased by a maximum of 0.89 points for each additional installment.
Pursuant to the Amendment, banks will be able to collect commissions from the Merchants in accordance with the limits set forth.