Following its market study on card payment fees, the Aruba Fair Trade Authority (AFTA) has concluded that card payment fees for merchants in Aruba are very high compared to those in Europe and the U.S. The largest component of these fees is the so called interchange fee set by the card schemes (VISA and Mastercard), which is applied uniformly by the banks. For every payment made with a payment card, the interchange fee must be paid by the merchant’s bank to the consumer’s bank. In Aruba, a large share of card payments is made by tourists. Consequently, Aruban banks often pay the high interchange fee to foreign banks, causing approximately Afl. 45 million to flow out of the Aruban economy each year.
The study was initiated due to notifications received regarding increasing card payment fees. As a result of the replacement of Maestro-payment cards by Mastercard Debit or Visa Debit, the commercial banks in Aruba started charging higher card payment fees to merchants, such as retailers, restaurants, and service providers. Roly Sint Jago, Chairman of the Board of AFTA stated that the study shows that the interchange fee in Aruba is 6 to 7 times higher than in other regions where the interchange fee is regulated. The banks in Aruba pass this fee on in their charges to merchants. Merchants then pass these costs on to consumers, who end up paying higher prices for products and services. Ultimately, the Aruban consumer bears the burden of the high interchange fees.
AFTA makes several recommendations that will help reduce card payment fees. The most important recommendation is that Aruba, like many other regions, should implement regulation. This would set a maximum limit on the interchange fee set by the card schemes, helping to limit the outflow of money from Aruba.
The AFTA is the independent and impartial authority of Aruba that oversees the proper functioning of markets. AFTA monitors the markets in Aruba through, among other things, information requests, interviews, and (un)announced company visits. Where necessary, AFTA acts to prevent and sanction anti-competitive behavior by companies. In 2026, AFTA will begin fulfilling its statutory role of collective consumer protection. Click here to read the summary of the investigation that was conducted.
