Brazil, Paraguay merchants get guide to card‑machine interest rates

Merchants using card‑machine (payment‑terminal) services in Brazil and Paraguay are advised to understand how interest rates on installment transactions are calculated. The rates are not fixed; they depend on factors such as the merchant’s sales history, the number of installments chosen by the customer, and the contractual terms with the payment processor.

Most terminals apply simple interest, which is calculated only on the original transaction amount, making the computation straightforward. An example shows a R$1,000 sale split into six monthly installments with a 2% monthly rate, resulting in R$120 total interest and a final payment of R$1,120. Knowing these calculations helps merchants decide when to offer installment plans versus cash payment, improving profitability and cash‑flow planning.