At the end of last week, the Antimonopoly Committee of Ukraine (AMCU) allowed payment companies Mastercard and Visa to reduce the level of domestic interbank fees. This was reported by the press service of the department.
The rate cut applies to domestic interbank fees for consumer payment details. The relevant amendments are made to the Supplemental Agreement No. 2, which is part of the Memorandum of Agreement between Mastercard and Visa and the NBU.
The rate cuts will take place according to the following schedule:
- for the period of martial law – starting from September 01, 2023, but not earlier than the next business day after the expiration of 14 calendar days after the date of receipt of the Committee’s permission in accordance with the law on competition, until the next business day after the expiration of 30 calendar days from the date of termination or cancellation of martial law – ≤ 0.70%;
- starting from the next business day after the expiration of 30 calendar days from the date of termination or cancellation of martial law, Mastercard Europe S.A. and Visa International Service Association will set the maximum rates of intra-state interbank fees for intra-state transactions using consumer payment account details at the level provided for in the Annex to the Memorandum for the period starting from July 01, 2023 (≤ 0.90%).
In other words, the rates will be reduced for the entire period of martial law until the full-scale war ends. In this way, government agencies are trying to help retail chains that are suffering economic losses due to the Russian invasion. It is expected that by lowering rates, they will also be able to keep food and goods prices for households at the current level. It should also support small and medium-sized businesses and contribute to Ukraine’s economic development. At the same time, it is reported that this will not lead to the prevention, elimination or restriction of competition.
