Ukrainian Oil and Gas Association supports reduction in the acquiring fee

Monday, 26 Jun 2017

Ukrainian Oil and Gas Association supports reduction in the acquiring fee

Ukrainian Oil and Gas Association supports reduction in the acquiring fee

The Ukrainian Oil and Gas Association shared the initiative of deputies of the Verkhovna Rada which have registered the draft bill No. 6573 “On Payment Systems and Money Transfers in Ukraine in terms of rewards during acquiring”.

This project proposed to dramatically reduce the banking interchange fee and general banking fee for servicing card transactions.

The system of cashless settlements between buyer and seller is extremely convenient for the consumer and, in addition, stimulates shift of the market towards the use of transparent legal modes of operation. However, the tariffs for servicing of cashless payments with the use of bank cards at gas filling stations are unreasonably high at the moment. According to the estimates of the participants of the Ukrainian Oil and Gas Association, they make up around15 % of all transactions, which is the highest indicator among other industries using acquiring services.

Since acceptance of payment cards for enterprises is mandatory and payment system operators have a monopoly position at the market, this situation allows financial institutions to dictate the rules of cooperation without any restrictions.

The Ukrainian Oil and Gas Association believes that the amount of the fee should be regulated at the legislative level and be brought in line with European and American standards.

At their end, the Association has already sent a number of formal requests to the largest operators of international payment systems Visa and MasterCard for assistance in addressing this issue, in particular, for making the fuel retail industry a separate segment, and lowering the fee for servicing of card transactions down to 0.5 % for this new segment.

The Ukrainian Oil and Gas Association believes that these steps will contribute to the sustainable development of payment infrastructure and strengthen the position of civilized participants of the petroleum products market.

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