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The Committee on Economic Affairs (CAE) of the Federal Senate approved Tuesday (4) a report that recommends to the Cade (Administrative Council of Economic Defense) to prohibit the verticalization of the market means of payment. will be sent to Cade and the Central Bank.
The purpose of these measures is to increase competition and attempt to reduce the bank spread, as it is called the difference between the interest paid by the banks to raise funds and the interest charged by them for lending money to customers. The expectation is to reduce the interest for the end consumer. Last month, the rate of interest on cardboard was 275.7% a year on average.
In practice, the rapporteur on the subject, Senator Armando Monteiro (PTB-PE), wants to prevent the same financial group from controlling all links in the industry chain. There are now cases in which the flag, the credit card issuer and the creditor (owner of the machine) have the same financial institution as their partner.
"In other words, prohibiting verticalization could be a more effective measure than the current pattern of punishment by fines.Some countries [e blocos] have already taken this direction, such as: Israel, Chile, Argentina, the European Union, Australia and the United States, "said the rapporteur.
Cross-subsidies
According to Monteiro,
This can happen when the bank owns the creditor and the issuer's flag.
The creditor offers a discount to the merchant, charging a lower rate for each transaction made with a card. But the bank offsets this discount by increasing the exchange rate, rate applied by it in each transaction processed by the creditor. As charges are established by the flag and paid to the issuing bank, this practice is detrimental to other competitors, especially creditors.
Ceiling for Fees Charged by Creditor
In addition, the report recommends that the Central Bank (BC) establish a limit on the rate applied by banks for the use of credit cards .
He recalled that in March of that year, British Columbia had set a ceiling for the debit card rate .
