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The Central Bank of Costa Rica (BCCR) has introduced a wide-ranging legal framework that aims to introduce rules similar to those set out in the EU’s Payment Services Directive and the US Durbin Amendment.
The regulation is designed to enhance efficiency, security and affordability across Costa Rica’s payment card system, with actionable compliance requirements staggered throughout 2025.
“These regulations regulate the maximum fees that may be charged by card system providers on the processing of transactions using payment devices, as well as all the elements that allow developing the efficiency and security of the card system, and guaranteeing the lowest possible cost for affiliates,” the regulation, published in Spanish, says.
Among its requirements, the regulation addresses the maximum fees that card system providers can charge for processing transactions and introduces a range of measures to streamline operations, improve security and reduce costs for users.
This includes making the adoption of advanced technologies, including EMV standards, contactless payments and International Bank Account Numbers (IBAN) mandatory on all new cards.
Issuers are also required to provide facilities for customers to manage PINs, to ensure robust authentication methods and to establish claims processes for issues such as theft or fraud.
The framework also sets specific interoperability requirements for ATMs and point-of-sale (POS) systems, particularly concerning the American Express brand.
Clearly inspired by other jurisdictions, including the EU, the regulation makes reference to strong customer authentication, setting out that authentication is “based on the use of two or more elements independent of each other, categorised as knowledge (something that only the client can know, known to the customer), possession (something that only the customer possesses) and inherence (something that is the customer), so that the violation of one of the elements does not compromise the reliability of the others”.
In the case of transactions made with devices from foreign issuers, the customer will be authenticated according to the mechanism defined by the issuer itself, the BCCR said.
Domestic issuers of payment devices will be obligated to disclose and train their customers on the proper use of the PIN and any other strong authentication mechanism used.
The timelines for compliance
The regulation sets out clear, if quick, timelines for compliance.
Although it takes effect immediately, certain provisions have staggered deadlines to allow service providers time to adapt.
For example, by February 20, 2025, acquirers must implement maximum local and cross-border fees, and card brands must also comply with fee caps.
As set out in the regulation, “for all types and amounts of local payment transactions, types of payment devices and commercial activities, issuers may charge the acquirer a maximum interchange fee of 1.00%”, while for local transactions, a maximum acquiring commission of 1.95 percent applies.
There is also a reduced rate of 1.50 percent for specific sectors, including service stations, electric vehicle recharging services, tolls, regulated transportation and charitable organisations.
Cross-border transactions are subject to a maximum interchange fee of 1.00 percent and a maximum acquiring commission of 2.50 percent, with similar exemptions at 1.50 percent for the same sectors.
The regulation also requires card brands to guarantee that total costs for acquirers do not exceed the prescribed fee caps.
Fees unrelated to the direct processing of transactions, such as those for additional services or POS terminal rentals (which are capped at CRC14,000 ($27) per month), are excluded from these limits.
In addition, acquirers may charge an additional fee for card-not-present transactions if anti-fraud services are contracted.
To ensure transparency, card brands must disclose fee structures publicly and notify stakeholders, including the BCCR, of any changes.
The BCCR has said that compliance verification is mandatory for all parties, with evidence of violations submitted to the central bank for appropriate action under its sanctions framework.
Service providers have been directed to ensure interoperability with American Express for POS systems by July 1, 2025, and interoperability for American Express must extend to ATMs by January 1, 2026.
Oversight and enforcement
Oversight and enforcement of the regulation are the responsibility of the BCCR’s Payment Systems Division, supported by the Payment Card System Advisory Commission.
Under the regulation, these bodies must work together to issue complementary regulations and technical standards that ensure the effective implementation of the framework.
The regulation also sets design standards for payment cards, requiring the inclusion of symbols for contactless payment and digital signatures, along with the integration of IBAN codes.
Issuers are encouraged to innovate while adhering to these standards, including by creating customisable nominative prepaid cards for businesses and Golden Citizen Cards (TCO) for senior citizens, to be offered at no cost except in cases of replacement.
Alignment with global standards
This regulatory initiative seems to represent a transformative step toward a more secure and professionalised payments system in Costa Rica, and balances a clear framework for technological advances with consumer protection and cost efficiency.
For example, the new rules stipulate transparency for card fees as seen in jurisdictions such as the US, EU and UK.
In the EU, for example, interchange fee rates must be disclosed; this is similar to the situation in the US and Singapore, although compliance requirements are less stringent in those jurisdictions.
In addition, the EU caps cross-border interchange fees at 0.2 percent for debit cards and 0.3 percent for credit cards, while Australia imposes a 0.5 percent cap for credit cards and a flat fee of 8 Australian cents for debit cards.
Closer to Costa Rica itself, in Brazil, debit card fees are capped at 0.5 percent, with an average credit card cap of 1.5 percent and, in the US, the Durbin Amendment limits debit card fees to 0.05 percent of the transaction value plus a flat fee of 21 cents.
