WILLEMSTAD - Significant unrest is brewing within Curaçao's commercial sector due to changes in the digital payment network, resulting in considerably higher costs for business owners. These digital payments, commonly known as 'swipe' or 'tap', occur when payments are made with a bank card via the Point of Sale (PoS) system.
By the end of 2024, banks in Curaçao will cease using the 'Maestro' debit card system and transition to the 'Mastercard debit' system. This also requires the utilization of the 'Mastercard and Visa debit' platform, rendering local systems like CashNet, operated by Maduro & Curiel’s Bank, obsolete.
The costs associated with using the Mastercard and Visa platform are significantly higher, with banks passing these costs on to business owners. They find themselves at a loss as they anticipate a drastic increase in annual debit card service costs.
Reports indicate costs could surge up to ten times higher than the current scenario. A business owner cited that currently, they pay less than one percent per transaction with a Maestro debit card, but this could escalate to nearly four percent on the Mastercard platform.
Business owners assert their inability to bear this cost hike, and there's a looming danger of passing these increases onto product prices. Thus, there's an urgent need for a strategy to curb these expenses.
Some business owners are refusing to accept the new debit cards (Mastercard) issued by banks to customers. They argue that the costs for this service are exorbitant and will result in significant revenue losses.
Instances of refusal to accept 'Mastercard' debit cards occur notably in snack shops or when purchasing electricity through the Pagatinu system. Traders believe the Central Bank of Curaçao and Sint Maarten should take a leading role in finding a solution as cost increases could lead to price hikes across all products in Curaçao, adversely impacting the country's social, economic, and financial situation.
In January of this year, a platform called the National Payment Council (NPC) was established, chaired by the Central Bank, with the aim of engaging stakeholders in discussions regarding topics such as the introduction of Mastercard and Visa debit cards.