The State Bank of Pakistan has abolished the mandatory minimum fee of 1.5%, which was being charged by banks from merchants on financial transactions done through debit and credit cards, and allowed financial institutions to charge even less than 1.5% to promote digital banking.
The central bank has maintained maximum limit of the fee at 2.5%, according to a notification issued on Friday. Besides, the SBP made it mandatory for all e-commerce players and online payment receivers in Pakistan to start accepting payments through cards maximum by June 30, 2023.
Earlier, fuel stations had stopped accepting payments through debit and credit cards and demanded the abolition of 1.5% fee.
Also, petroleum product dealers and oil marketing companies (OMCs) like Pakistan State Oil (PSO) sought permission from the authorities concerned for recovering the additional amount from cardholders so that their profit margins were not compromised. The authorities, however, turned down the demand.