NSPK introduces a fee for repaying MFO loans using cards

The NSPK representative explained that changes are planned for the correct processing of interbank card transactions for MFO services and services, taking into account the requirements of the Mir payment system for various types of transactions.

Recently, MFIs have been repaying their debts through Aid for Trade transactions. This operation involves replenishing an account with a card and is considered a transfer, which made it possible to significantly reduce the commission compared to a normal card payment.

Migcredit MFC told the publication that at the beginning of the year the NSPK banned banks from using AFT transactions for MFOs. The introduction of a new MCC and interchange code was a compromise that will ultimately avoid an outright ban, although it will definitely lead to increased operating costs in the sector.

At the same time, clients of large microfinance organizations will probably not feel any change. The financial director of the Webbankir platform, Ilya Soloviy, suggested that companies would not pass on the new costs to borrowers and would cover them themselves.

In 2023, updated basic standards for microfinance organizations (MFIs) came into force, which, in particular, tightened the rules for verifying the identity and data of borrowers for online issuances. For example, companies must now carry out at least three of the ten procedures prescribed in the rules: checking the validity of the borrower’s passport and the authenticity of the photograph it contains, the customer’s credit history and also that he is the one using the account and the number specified in the application. Previously, a photocopy of the passport and a telephone number were enough to do this.