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New Regulations on Interchange Fees to Enter into Force

On 17 December 2018, the Law on Interchange Fees and Special Operating Rules for Card-Based Payment Transactions (the “Law on Interchange Fees”) will enter into force.

On 17 December 2018, the Law on Interchange Fees and Special Operating Rules for Card-Based Payment Transactions (the “Law on Interchange Fees”) will enter into force. The Law on Interchange Fees was a part of the financial regulations package adopted by the Serbian Parliament on 8 June 2018, which also included (i) the Law on Financial Collaterals, and amendments to (ii) the Law on Payment Services, (iii) the Bankruptcy Law, (iv) the Law on Bankruptcy and Liquidation of Banks and Insurance Companies, (iv) the Company Law, (v) the Law on Protection of Financial Services Users for Distance Contracting.

The model for adoption of the Law on Interchange Fees was the Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015 on interchange fees for card-based payment transactions, although some provisions of the Regulation (EU) 2015/751 were not transposed into the national law. Those provisions should be applied automatically when Serbia joins the EU.

As per the Law on Interchange Fees, the interchange fees cannot be higher than 0.2% and 0.3% of the value of transaction for debit and credit cards respectively. However, during the first 6 months as of the Law on Interchange Fees becomes effective, payment services providers may charge an interchange fee not higher than 0.5% and 0.6% of the value of transaction for debit and credit cards respectively. The Law on Interchange Fees, inter alia, introduces the cobadging, unblending and “honour all cards rule” principles.

The National Bank of Serbia adopted the Decision on Contents, Terms and Manner of Informing about Interchange Fees which banks, electronic money institutions, payment institutions and a post office giro institution must abide by and which enables the National Bank of Serbia to monitor implementation of the Law on Interchange Fees.

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