CBA: New MCC tariffs aim to reduce business costs

A balanced approach has been applied to MCC tariffs to promote cashless payments and reduce business costs, Tofig Ajirgayev, chief software engineer at the Central Bank of Azerbaijan (CBA), said at the 10th International Banking and Finance Summit in Baku, Report informs.

According to him, under the new tariffs, a rate of 1.25% has been set for transactions carried out at grocery stores and pharmacies, 0.75% for filling stations, and a maximum of 1.5% for other general MCC categories.

Ajirgayev said the main purpose of the changes is to reduce the costs of acquirer banks - financial institutions that provide services to trade and service facilities, or merchants, for accepting payments - thereby creating conditions for lower service fees for business entities and encouraging the wider use of cashless payments.

"When setting the tariffs, special attention was paid to maintaining a balance between the interests of acquirer and issuer banks, as well as business entities," he stressed.