The Central Bank of Paraguay (BCP) has implemented a reduction in the commission rates for both credit and debit card payments, with the new policy in effect from 1 July 2026. This measure sees a gradual decrease of one percentage point on the fees charged to merchants for processing electronic transactions. The central bank is enacting this change under the authority granted by Law No. 5.476/15, which governs transparency and user protection in the payment card sector.
Specifically, the new regulations lowers the maximum commission for credit card transactions from the current 4% to 3%. In addition, the cap for debit card transactions are reduced from 3% to 2%. This adjustment is designed to lower the cost of accepting electronic payments for businesses across the country, a move the BCP believes will have widespread positive effects on the national economy. The new card fees cut was announced one year ago.
Details of the regulatory framework
The decision is rooted in the BCP’s mandate under Article 10 of Law No. 5.476/15. This legislation empowers the central bank to regulate the commissions that payment operators and card issuers charge to affiliated merchants for intermediation services. The primary goal of the law is to create a fairer and more transparent environment for all parties involved in electronic transactions, from the smallest business to the largest financial institution.
The BCP clarified that the reduction applies to the total value charged to businesses for the provision of payment intermediation services. This ensures that the benefits of the lower commission rates are directly felt by merchants, which could translate into savings for consumers and increased investment in business growth. The phased implementation is intended to give the financial sector ample time to adapt to the new structure.
A comprehensive application across the sector
In its announcement, the Central Bank of Paraguay specified that the new rules will apply broadly across the payments industry. The term ‘operators’ encompasses all entities that provide intermediation services for electronic payments with credit or debit cards. Furthermore, it includes any organisation that participates in any stage of the payment intermediation process.
This definition ensures that no part of the payment chain is exempt from the new commission caps, regardless of the specific means used or the functions performed within the process. By adopting this comprehensive approach, the BCP aims to prevent any circumvention of the rules and to guarantee that the cost reductions are applied consistently throughout the market.
Anticipated benefits for the wider economy
Officials at the BCP expect the policy to yield positive results on several levels. A key objective is to foster the increased use of electronic payment methods, which will consequently minimise the reliance on physical cash within the market. This shift is seen as a crucial step towards modernising the country’s financial infrastructure and reducing the risks and inefficiencies associated with handling cash.
Moreover, the measure is projected to significantly advance financial inclusion. By making it more affordable for merchants to accept card payments, the policy facilitates easier access to banking services for businesses and broader segments of the general population. This integration into the formal financial system is vital for economic development and stability.
