Visa and Mastercard have sued the Central Bank of Costa Rica (BCCR) over caps currently imposed on fees for cross-border payments. These payments refer to those made by individuals in Costa Rica using cards issued in other countries.
Initially, Visa filed a claim with the Constitutional Chamber, but it was not admitted. Subsequently, Mastercard sued the Central Bank before the Administrative Court, seeking the annulment of all payment system regulations, including the cap on these commissions. The court denied the petition, and Mastercard filed an appeal. Visa later filed a similar lawsuit, which is still ongoing.
In March 2020, Law 9831, known as the Maximum Commissions of the Card System, came into effect, empowering the BCCR to set commission fees for transactions made within the country. However, Visa and Mastercard argue that while the law allows the Central Bank to regulate domestic transactions, it does not grant authority over transactions they consider to be outside its jurisdiction.
The companies argue that the Central Bank’s regulations, derived from the 2020 law, which allow it to cap interchange fees, are detrimental. Visa specifically contends that the BCCR’s interpretation of Law 9831, which impacts participants in the payment system located outside of Costa Rica, overextends the bank’s authority.
In addition, Visa claims that these fee caps are a form of “price control” and could lead to “economic damage” by hindering digitization, formalization, and economic growth. The company also warned that foreign issuers might reject more cross-border transactions if the cost of processing them outweighs the revenue generated.
Mastercard argues that such transactions should not be subject to the limits imposed by the Central Bank. The company stated, “Costa Rica is the only country in the world where a regulator unilaterally takes such measures, which is far from the international best practices that Law 9831 instructs the BCCR to follow.”
A bill currently under review in the Legislative Assembly aims to remove the BCCR’s authority to regulate these transactions. Visa and Mastercard have expressed their support for this bill.
However, the president of the BCCR opposes the bill. Speaking before the Fiscal Affairs Commission on September 18, he argued that eliminating the caps would have an impact on the Costa Rican economy similar to the effect of the Value Added Tax (VAT).
