New Debate Over Credit Card Fee Regulation

TESK Chairman Bendevi Palandöken warned that the cost of card payments should not be piled onto merchants, urging regulators to pull interchange fees down to reasonable levels.

Merchant Voice Calls for Fee Relief

Palandöken argued that rising card‑transaction fees are squeezing small‑business margins and could ultimately be passed on to consumers.

Potential Impact on Card Networks and Processors

■Visa and Mastercard may face pressure to lower interchange rates in Turkey, a market that contributes a notable share of their regional volume.

■Local switch BKM Express could see its fee‑based revenue stream compressed.

■Banks might experience a slowdown in card‑related interest income if transaction volumes dip.

■Anticipated margin compression could reach double‑digit basis points during the adjustment period.

Signals for Investors

■Payment processors may accelerate diversification into value‑added services such as data analytics and subscription tools to offset fee headwinds.

■Lenders should monitor the quality of their card‑receivable books; lower fees could shift consumer spending patterns.

■Stabilizing interest rates could help offset any hit to card‑lend income.

■Similar moves in the EU and US could prompt global networks to revisit their cost structures worldwide.

Aylin Güneş: Fee regulation aims to ease merchant burden while reshaping the revenue mix of the payments ecosystem. Over the long term, such reforms can incentivize networks to innovate beyond pure transaction fees, pushing them toward higher‑margin, data‑driven offerings. Investors will need to weigh the margin sensitivity of processors against the potential for structural growth in ancillary services.