SBP directs banks not to charge fees on digital payments

The State Bank of Pakistan (SBP) has directed all the banks in the country not to charge Transaction Fees on Government Payments through Payment Cards and Electronic Wallets.

“In order to promote digital payments through payment cards in the country, it has been decided that banks in Pakistan shall not charge any variable transaction fee (Interchange, Merchant Discount Rate etc.) on payments made to Federal and Provincial Governments using electronic modes of payments including payment cards and electronic wallets etc,” stated SBP in a statement.

“The acquiring banks, however, may charge a pre-determined flat service fee from the concerned government entities with mutual agreement. Further, these instructions will be applicable at the time of signing of new agreement or the renewal of existing agreements,” added the central bank.

All issuing and acquiring banks/microfinance banks/payment schemes are advised to meticulously comply with these instructions, directed the SBP.