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Turkey’s Central Bank Cuts Credit Card Rates

Credit Card Payments

The Central Bank of the Republic of Turkey (TCMB) has introduced two major regulatory moves aimed at easing pressure on both consumers and businesses. The changes, published in the Official Gazette, bring lower credit card interest rates effective immediately and a significant reduction in POS commissions for debit card transactions starting November 1, 2025.

Credit Card Interest Rates Cut by 25 Basis Points

In a step designed to provide relief to households struggling with high borrowing costs, the TCMB reduced the maximum interest rates on credit card transactions by 25 basis points.

  • Contractual Interest (Akdi Faiz): Lowered from 4.75% to 4.50%

  • Late Payment Interest (Gecikme Faizi): Reduced from 5.05% to 4.80%

These cuts also extend to cash withdrawals made via credit cards and overdraft account (KMH) transactions, easing short-term borrowing costs for millions of consumers.

POS Commission Overhaul to Support Merchants

For merchants, particularly SMEs reliant on card payments, the Central Bank has taken a separate step to reduce operational costs.

  • Credit Card POS Fee: Remains unchanged at 3.56%

  • Debit Card POS Fee: Slashed to 1.04% (effective November 1, 2025)

This new 1.04% cap will also apply to prepaid card payments and account-to-account transactions, widening its impact across the retail and services sector.

Faster Access to Cash Flow

Another critical adjustment is in the block period for merchants opting out of paying POS fees. Previously, businesses could face up to 40 days of blocked funds, straining liquidity. Under the new rule, the maximum block period for debit card transactions is reduced to just 15 days, helping retailers and small businesses access working capital more quickly.

Why It Matters

For consumers, the reduction in credit card interest rates comes at a time of rising living costs, providing at least modest relief for those relying on credit to cover daily expenses. For businesses, especially smaller retailers squeezed by rising rents and costs, the cut in POS fees and block times will lower expenses and improve cash flow stability.

Together, these measures mark a dual-pronged approach by the Central Bank—supporting household finances while easing the financial load on merchants.

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