The Bank of Ghana (BoG) is urging the public to disregard social media reports regarding currency conversion rates on international card transactions.
Sources close to the Central Bank told Joy Business that the public should disregard “misinformation circulating on various social media platforms and rather reach out to the regulator for clarity on such issues, especially when it comes to banking and payment industry matters.”
This follows viral posts on social media claiming that the government has directed all banks to deduct a 7% tax on international transactions made with Visa and MasterCard in Ghana.
Clarity from the Central Bank
According to the Bank of Ghana, international card transactions attract an optional issuance fee, which covers the cost of acquiring, processing, and settling transactions involving foreign currency.
The Bank explained that this is a standard industry practice that is not limited to Ghana.
However, monitoring by the Central Bank revealed that banks in the country were charging optional issuance fees ranging between 6% and 14%, which the regulator considered excessive and required action.
Joy Business also understands that the Bank of Ghana only introduced a ‘ceiling’ on these fees, limiting banks to a maximum charge of 7.5% on the value of any card transaction involving foreign currency.
The Central Bank clarified that this should not be misconstrued as a new tax on card payments.
Rather, it is a regulatory measure to standardise and cap existing charges.
The Bank further noted that the new fee structure is competitive within the subregion, with some banks already charging well below the 7.5% limit.
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