The facade of the Banque du Liban on Aug. 22, 2025. (Credit: Archive photo P.H.B./L'Orient-Le Jour)
BEIRUT — Banque du Liban (Central Bank, BDL) has capped the commission that banks and financial institutions can charge merchants on locally issued bank-card transactions — or the Merchant Discount Rate (MDR) — at 1.25%, the circular announced in a circular issued on April 28.
This decision also applies to “interchange fee transferred to the card issuer,” which the BDL also capped at 0.9%. The ceilings apply to several sectors it deemed “vital” including gas stations, supermarkets and mini-markets, hospitals, pharmacies and large bakeries.
BDL also prohibited banks and financial institutions from charging any additional commissions, fees or costs, whether directly or indirectly, to merchants in these sectors.
The move, set to enter into force on June 15, aims to encourage electronic payments and reduce Lebanon’s reliance on cash.
The circular also requires banks and financial institutions to prevent any business accepting payments through point-of-sale terminals (POS), or any other electronic payment method, from imposing extra fees on consumers who pay by card.
The BDL said the move was intended to “encourage the adoption of electronic means of payment and expanding their use and acceptance across various economic and vital sectors,” and curb the cash economy in a “way that strengthens financial transparency, enhances tax compliance, and contributes to combating tax evasion and illicit activities.”
Lebanon was placed on the Financial Action Task Force (FATF)’s grey list in October 2024 over deficiencies in its anti-money laundering (AML) and counter-terrorist financing (CTF) framework.
