Asunción, Paraguay - The Central Bank of Paraguay (BCP) has decided to gradually reduce the fees that shops must pay for credit and debit card transactions.

Starting from July 1, 2025, the credit card fee will be reduced from the current 5% to 4%, while the debit card fee will remain at 3%. Subsequently, on July 1, 2026, the credit card fee will be further reduced to 3%, and the debit card fee to 2%.

Holger Insfran, BCP's Bank Superintendent, emphasized in an interview with 650 AM Radio that this measure will be of great help, especially to small shops with low transaction volumes and weak negotiating power.

"Many small shops with weak negotiating power and low transaction volumes are currently struggling to pay the maximum fees. We expect this fee reduction to be particularly beneficial to them," he said.

He also anticipated that the fee reduction would increase the acceptance of electronic payments by small shops. "We expect the demand for services from small shops to increase, and for them to more actively accept credit or debit card payments," he added.

The current maximum allowable fees are 5% for credit cards and 3% for debit cards. Under the new regulations, these will be reduced to 4% and 3% respectively in 2025, and further reduced to 3% and 2% in July 2026.

According to BCP's research, the use of credit and debit cards is steadily increasing, with a notable rise in bank transfers. Additionally, ATM cash withdrawals have significantly decreased, indicating the growing prevalence of digital payment methods in Paraguay.