Brazil’s Monetary Council has slashed the
number of issuance fees on credit cards from more than 80 to just
five.
Under the new rules, which come into effect in
March next year, credit and debit card companies must offer
customers the option of a card with basic services.
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In a statement Associação Brasileira de
Cartões de Crédito e Serviço (ABECS) said it “wants to
continue to work with the federal authorities both to help them
formulate new rules for the cards industry and also to ensure
self-regulation by cards companies.”
The fees that will remain in play when the new
legislation is enforced include an annual fee and the use of
automated teller machines for withdrawing cash on credit.
The move is reported to have been made in a
bid to heighten competition in Brazil’s $310 billion credit card
industry, where both merchants and consumers alike complain about
unfair costs.
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By GlobalData
