The Bank of Albania has launched a public consultation on a draft regulation aimed at setting limits on interchange fees for card-based payment transactions. The proposal targets lower costs for merchants accepting card payments.
The regulation is currently open for discussion with stakeholders from the financial and business sectors before final adoption.
EU Directive Alignment Brings 0.2% Debit and 0.3% Credit Card Fee Caps
The draft framework aligns with a 2015 European Union directive regulating interchange fees across payment card systems.
Under the proposal, interchange fees would be capped at 0.2% of transaction value for debit cards and 0.3% for credit cards, introducing a formal ceiling for banks and payment providers operating in Albania.
How Card Interchange Fees and Merchant Payment Costs Work in Albania
Interchange fees represent the amount paid between banks involved in a card transaction—typically from the merchant’s bank to the cardholder’s bank.
These fees are only one component of the total cost merchants pay when accepting card payments, alongside scheme fees charged by networks such as Visa and Mastercard, and acquiring bank margins.
Current Merchant Card Fees in Albania Reach Up to 3% per Transaction
At present, total merchant fees for card payments in Albania can reach up to around 3%, especially for foreign-issued cards. Domestic card transactions generally incur lower costs.
Industry estimates suggest interchange fees alone are currently close to 1.5% on average, depending on business category and risk profile.
Expected Reduction in Payment Costs for Businesses After Fee Caps
By limiting interchange fees, the central bank expects overall merchant costs for card payments to decline significantly.
Official projections suggest total fees could drop toward 1%, while banking sector representatives consider 1.5% a more realistic long-term level.
Legal Process and Timeline for Card Fee Regulation Implementation
The regulation cannot take effect immediately, as it depends on amendments to Albania’s Law on Payment Services.
The law is still in public consultation and has not yet been submitted to parliament. Once approved, the Bank of Albania will be able to formally adopt and enforce the new interchange fee limits.