Reduction of “Visa” and “Mastercard” Fees in Ukraine

by Roman Cheplyk
Monday, November 29, 2021
2 MIN
Reduction of “Visa” and “Mastercard” Fees in Ukraine

The National bank of Ukraine announced a reduction of the exchange rate of internal interbank fees in Ukraine to 1.2% from November 26, 2021

The reduction of the commission on the stock exchange took place under the terms of the proposal to promote payment markets in Ukraine that will compete.

The precondition for the reduction of commissions was the granting by the AMCU on November 11, 2021, of the relevant permission of Mastercard and Visa for concerted actions in the form of reducing the number of internal fees between banks.

The national bank welcomes the continuation of the gradual reduction of interest rates for domestic operations in Ukraine.

Further implementation of the memorandum will allow for a balanced development of non-cash payments, taking into account the level of coverage of citizens with banking services on the one hand and the development of payment infrastructure on the other. Also, it will reduce the tariffs for merchants by acquiring banks, which in particular will help lower business costs.

In general, the memorandum stipulates that signatory payment systems should reduce the maximum rates of interchange commission rates:

  • Two weeks after obtaining the AMCU permit — up to the level of not more than 1.20%;
  • From July 1, 2022 — to the level of not more than 1.00%;
  • From July 1, 2023 — to the level of not more than 0.9%.

Recall that the antimonopoly committee allowed Mastercard and Visa payment systems to fulfill a memorandum on reducing the interbank rate.

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