LNP – No legal provisions for companies to charge 2.5%–3% fees on card transactions: CBSL

Companies and institutions have no legal provisions to impose additional charges ranging from 2.5% to 3% on customers for transactions made using credit or debit cards, the Director of Payments and Settlements at the Central Bank of Sri Lanka (CBSL), Vasantha Alwis has stated.

He made this statement during a press briefing held at the Central Bank of Sri Lanka yesterday (July 23).

Alwis said although they have noticed companies charging additional fees, doing so is not permitted under the agreements between the banks and the said merchants.

“If any institution imposes an additional fee on digital transactions, customers should immediately lodge a complaint with the bank that issued their card,” he advised.Â

“It is also crucial to obtain a receipt clearly showing the fee charged, so that the bank can initiate the process to recover the excess amount.”

He further explained that merchants who offer credit card payment facilities do so through a formal agreement with a local bank, and these agreements explicitly prohibit the collection of additional fees from customers.

“There is a clear clause in the agreement between the bank and the institution stating that no extra charges may be levied from cardholders,” Alwis noted.Â

“If an institution collects such charges, customers must report it with proof so that the banks involved can resolve the matter,” he added further.