High card processing fees hinder digital payments in Mexico

High merchant discount rates (MDR) are hindering the adoption of card payments among small businesses and corner stores in Mexico. According to Concanaco Servytur, average fees reach 2.94% for credit cards and 2.77% for debit cards, with some sectors like restaurants facing rates as high as 5.39%.

In comparison to international models, Mexico's costs are significantly higher. For instance, retail MDR in Spain ranges between 0.31% and 0.34%, while South Korea utilizes a tiered system based on business size, and Brazil has implemented measures to increase transparency and competition to lower costs.

To manage these expenses, some merchants increase product prices or attempt to charge consumers additional fees at the point of sale. However, Martín Humberto Zalazar Zazueta, president of Canacope Hermosillo, stated that these commissions should be integrated into operating costs rather than passed on as extra charges. Furthermore, Condusef has warned that imposing minimum consumption requirements or additional surcharges of 3% to 5% for card use violates agreements between merchants and banks and disincentivizes electronic payments.