The National Bank of Serbia (NBS) announced that the total costs for banks to international card systems in 2023 amounted to 111 million euros, an increase of 124% compared to 2019. These costs refer to fees charged by card systems, which are not regulated by law and are beyond NBS’s control.
Additionally, the costs for banks related to the national DinaCard system in 2023 were 2.7 million euros, marking a 94% increase from 2019.
The central bank of Serbia also reported that the number of transactions at point-of-sale terminals at the end of 2023, compared to the end of 2019, rose by 118%, and the turnover increased by 163%. This further confirms NBS’s assessment that the 2018 law limiting interbank fees would reduce acceptance costs and increase the number of transactions at point-of-sale terminals in the future.
In a hypothetical scenario, the NBS stated that if the transactions and turnover from the DinaCard system between 2019 and 2023 had been conducted through the most common international card systems, the market costs towards card systems would have increased by over 175 million euros. “This once again confirms that using payment cards issued under the national DinaCard system is significantly more cost-effective than international systems, benefiting all participants in payments,” the announcement stated.
The NBS also highlighted that when comparing the share of total turnover of a specific card system to the costs it generates for banks, it is revealed that one international card system, which accounts for about 32% of total turnover, generates more than 60% of the total costs banks pay to card systems.
“At the same time, the national DinaCard system, which has a similar share in total turnover (approximately the same as international card systems) in 2023, generates only 2.37% of the total costs for banks towards card systems. This confirms the cost advantages of the national card system, which provides the same functions as international card systems, including contactless technology, starting June 1, 2024,” stated the central bank of Serbia in its announcement.
