Authorities Fine-tune Changes to Card Payments and the APR; Congress and Supreme Court Reinforce Consumer Financial Protection
The Mexican financial ecosystem is getting ready for a series of regulatory adjustments focused on the consumer. The Bank of Mexico (Banxico) and the National Banking and Securities Commission (CNBV) have put two proposals up for public consultation: one to reduce the cost of card payments, and another to update the methodology for the Annual Percentage Rate (CAT, for its initials in Spanish). At the same time, the Chamber of Deputies approved a bill to curb unauthorized charges and products and to strengthen responses to fraud. Meanwhile, the Supreme Court of Justice ruled that banks must use reliable documentation and processes to prove that clients have consented to every transaction.
The most intense debate centers on the interchange fees merchants pay to accept card payments. According to authorities and Mexico’s antitrust regulator (Cofece), these fees in Mexico average above international standards and can reach up to 1.91% for credit and 1.15% for debit, making it more expensive for small businesses to accept cards. The aim of the changes is to reduce friction and costs at the point of sale, expanding card acceptance among micro-businesses and neighborhood stores. The banking sector, represented by the Mexican Banking Association, has warned of the risks of “price controls” and potential impacts on rewards programs and incentives if the regulation fails to take the two-sided nature of payment platforms into account.
The second regulatory initiative seeks to update the CAT formula to make it more comparable, transparent, and realistic. The CAT, which reflects the comprehensive cost of credit including interest and fees, is key for households as they compare credit cards, personal loans, auto loans, or mortgages. The change will require updates to simulators, calculation systems, and contract disclosures. In a context where the cost of money remained high throughout 2024 and service inflation proved persistent, a clearer measurement of total credit cost could boost competition among lenders and help consumers make better decisions.
On the legislative front, deputies approved a measure that would prohibit institutions from charging commissions for services, insurance, memberships, or benefits not stipulated in the adhesion contract or explicitly authorized by the user. It also aims to make it easier to cancel card accounts via in-person, phone, or digital channels within a maximum of five business days and with no penalties, as well as to forbid the issuance of physical cards without the client’s consent. The proposal is intended to help combat phishing and identity theft, both of which have become more complex with digitalization of financial services; final approval still requires a Senate vote.
The Supreme Court’s recent decision increases the burden of proof on financial institutions: they will have to demonstrate that every operation was authorized by the client with clear documents and trustworthy processes. In practice, this puts pressure on banks to strengthen authentication, traceability, and anti-fraud controls—from biometrics and two-step verification to better dispute and reimbursement protocols. For banks and fintechs, the challenge will be to raise standards without hindering user experience or slowing the growth of digital payments.
For merchants, a reduction in interchange fees could translate into wider adoption of card terminals in areas where cash still dominates, with positive impacts for formalization and productivity. In Mexico, a large share of everyday transactions still take place in cash, despite growth in SPEI, CoDi, and QR code payments. A cheaper, more transparent payment ecosystem could drive financial inclusion, simplify accounting, and lower cash handling costs, especially for small businesses and self-employed workers.
The macroeconomic outlook is mixed: the economy has found support in high remittances, investment linked to nearshoring, and a resilient labor market, but households remain sensitive to changes in service prices and credit costs. In that context, pro-consumer measures could increase trust and use of formal financial services—as long as they’re implemented with clear rules, gradual rollout, and coordination between Banxico, CNBV, Condusef, and industry players.
The next steps will unfold both technically and politically: Banxico and CNBV’s consultations will give banks, acquirers, fintechs, and merchants a chance to present evidence and proposals; if there’s consensus, implementation would be gradual to allow operational adjustments. In Congress, the Senate will determine the final scope of the reforms, while the Supreme Court’s decision will accelerate improvements in documentation and consent processes.
In summary, Mexico is moving toward a more competitive payments framework and clearer credit information, while also strengthening consumer protection. Striking the right balance between lower costs, innovation, and security will be crucial for these changes to lead to greater financial inclusion and broader adoption of digital payment methods, without compromising the system’s stability.
