Credit Card Interest Rates Drop, POS Commission Cuts Ahead in Turkey

Starting October 1, 2025, Turkish consumers and businesses will experience significant changes in the financial landscape. The Central Bank of the Republic of Turkey (TCMB) has announced adjustments that will directly impact both credit card users and merchants relying on card payment systems. The dual reforms aim to ease the burden on indebted households while improving conditions for retailers and service providers.

Credit Card Interest Rates Lowered

Under the new decision, the interest applied to credit card balances will be reduced. For customers who pay only the minimum due amount on their credit cards, the interest on the remaining balance, known as the contractual rate (akdi faiz), will fall from 4.75% to 4.50%, a cut of 25 basis points. This may appear modest, but for households juggling high debt levels, even fractional reductions can provide measurable relief over time.

The late payment interest, applied when the minimum payment is not met, will also be reduced. This penalty rate is shifting from 5.05% down to 4.80%. These changes are expected to give a small but meaningful cushion to consumers struggling to manage overdue credit card balances.

Importantly, the same 25 basis point reduction will also apply to cash withdrawals made through credit cards and overdraft accounts (KMH), which are often used by households as a financial lifeline. For individuals relying on short-term borrowing, these adjustments mean slightly lower borrowing costs at a time when broader inflationary pressures are already squeezing incomes.

POS Commissions: A New Era for Merchants

While consumers benefit from lower interest, businesses are set to gain from reforms targeting Point-of-Sale (POS) commissions. Previously, all card transactions—whether by credit or debit—were subject to a uniform maximum commission rate of 3.56%. With the new regulation, the Central Bank introduces a distinction between credit card and debit card transactions.

Credit Cards: No Change in Commission Rates

For credit card purchases of goods and services, the maximum POS commission charged to merchants remains unchanged at 3.56%.

Debit Cards: Commission Cut to 1.04%

The breakthrough comes in the treatment of debit card (banka kartı) payments. For these transactions, the maximum POS commission rate has been slashed to just 1.04%, a move expected to substantially reduce costs for businesses where debit card payments are more prevalent. This marks a clear incentive for merchants to encourage debit over credit usage, potentially reshaping payment dynamics in retail and service sectors.

Shorter Blocking Periods and Wider Coverage

Merchants who choose to avoid paying commission by leaving a portion of their turnover blocked at banks will also benefit. Previously, these blocked funds could be held for up to 40 days, limiting liquidity for businesses. Under the new rules, the maximum blocking period for debit card transactions is cut to just 15 days, allowing retailers quicker access to cash flow.

The Central Bank has also expanded the scope of these reforms. The lower debit card commission rate and shortened block period will now also apply to prepaid cards and the increasingly popular account-to-account workplace payments, which have grown alongside fintech innovations.

Implementation Timeline

These adjustments come in two phases. The interest rate cuts on credit card balances, overdrafts, and cash withdrawals take effect October 1, 2025. The POS commission reforms, including the reduced debit card commission and shortened block periods, will begin November 1, 2025.

What It Means for Consumers and Businesses

For consumers, the reforms translate into slightly lower costs for carrying credit card debt and accessing overdraft facilities—relief that may help in an environment of tight household budgets. For businesses, particularly small and medium-sized enterprises (SMEs), the lower debit card commission rates and shorter blocking periods mean higher profitability, faster liquidity, and reduced financial strain.

Ultimately, these measures reflect the Central Bank’s strategy to support both household financial stability and commercial competitiveness. By encouraging debit card usage and lowering costs, the reforms could also stimulate greater use of non-cash transactions, aligning Turkey with global payment modernization trends.

As of late 2025, both individuals and enterprises should prepare for this dual transformation—one that lightens the debt load on consumers while lowering operational costs for businesses.