Setting a Cap on the Merchant Discount Rate (MDR)

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Central Bank Circular No. 173

For Banks and Financial Institutions

We enclose a copy of the Basic Decision No. 13810 dated 2026/4/28 regarding the determination of the cap on the Merchant Discount Rate (MDR).

Beirut, 28 April 2026

Governor of the Central Bank of Lebanon

Karim Saeed

Basic Decision No. 13810 Determination of the Cap on the Merchant Discount Rate (MDR)

The Governor of the Central Bank of Lebanon, Pursuant to the Monetary and Exchange Law, particularly Articles 70 and following thereof, And pursuant to Law No. 133 dated 26/10/99 (concerning the tasks of the Central Bank of Lebanon), which vested the Central Bank with the authority to develop and regulate payment means and systems, particularly transactions conducted via ATMs and debit, payment, or credit cards, With a view to encouraging the adoption of electronic payment means and expanding their scope of use and acceptance across various vital economic sectors, Seeking to curb the cash economy phenomenon (Cash Economy), thereby consolidating financial transparency, enhancing tax compliance, contributing to combating tax evasion and illicit activities, And believing in the importance of strengthening the culture of electronic payments among both consumers and merchants, given its impact on reducing cash circulation risks and facilitating commercial transactions, In accordance with best international practices for regulating payment systems, which have adopted caps on commissions and mandated the acceptance of electronic payments in vital sectors, With the aim of supporting financial inclusion and enhancing the integration of individuals and institutions within the financial and banking system, After consultation and coordination with both the Ministry of Finance and the Ministry of Economy and Trade, particularly the Consumer Protection Authority, to ensure the complementarity of monetary and financial policies and protect consumer rights, And based on the decision of the Central Bank Council taken at its meeting held on 2026/4/22, Decrees as follows:

Article One: Scope of Application and Commission Cap The concerned banks and financial institutions shall not charge merchants a Merchant Discount Rate (MDR) exceeding a maximum limit of 1.25% of the value of each transaction executed via all locally issued bank cards, including an Interchange Fee transferred to the card issuer not exceeding 0.9%. The above maximum limit applies to the following vital sectors:

1. Fuel distribution stations (gas stations).
2. Supermarkets and mini-markets.
3. Hospitals.
4. Pharmacies.
5. Large bakeries. ..//

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Article Two: Prohibition of Additional Fees The concerned banks and financial institutions are prohibited from exceeding the cap specified in Article One above and charging any commissions, allowances, or additional fees, directly or indirectly, from the vital sectors.

Article Three: Prohibition of Fees on Consumers The concerned banks and financial institutions shall prohibit any merchant accepting payments via electronic point-of-sale (POS) terminals or through any other electronic means from imposing any additional fee on the consumer, regardless of its type, when paying by bank card. Article Four: Implementation Period The provisions of this decision shall take effect starting from 2026/6/15. Article Five: Supervision The Banks Supervision Committee shall monitor the proper implementation of the provisions of this decision. Article Six: Publication This decision shall be published in the Official Gazette. Beirut, 28 April 2026 Governor of the Central Bank of Lebanon Karim Saeed