The Bank of Lebanon issued Basic Decision No. 13810 under Basic Circular No. 173 for banks and financial institutions, which aims to enhance the acceptance of electronic payments and limit the spread of the cash economy.
In detail, the circular set the ceiling for the merchant commission (Merchant Discount Rate) that banks and financial institutions charge from merchants in vital sectors (gas stations, hospitals, pharmacies, supermarkets, mini-markets, and large ovens) at 1.25% of the value of the transaction on locally issued cards, including an interchange fee transferred to the card issuer (Interchange Fee) of a maximum of 0.9%.
In addition, the circular requested banks to prevent merchants who accept payments via point of sale (POS) or any other type of electronic payments from imposing any additional fees on consumers who use these payment methods.
