Following a market investigation into payment card transaction fees, the Aruba Fair Trade Authority (AFTA) has concluded that merchants in Aruba pay significantly higher fees for card-based transactions compared to rates in the European Union and the United States.
The main cost component of card transactions is the so-called interchange fee, a commission set by international card companies such as Visa and Mastercard and applied uniformly by banks. For every card transaction, the merchant’s bank must pay this fee to the consumer’s bank.
In Aruba, a large share of card transactions is carried out by tourists, meaning local banks pay high interchange fees to foreign banks. As a result, an estimated Afl. 45 million leaves the Aruban economy each year due to these fees.
AFTA initiated the investigation after receiving indications that card transaction fees had increased. This rise followed the transition from Maestro cards to Mastercard Debit and Visa Debit, after which local banks began charging merchants—such as shops, restaurants, and service providers—higher transaction fees.
According to Roly Sint Jago, Chairman of AFTA’s Board of Directors, the investigation shows that interchange fees in Aruba are six to seven times higher than in regions where these fees are regulated. Local banks pass these costs on to merchants, who in turn transfer them to consumers through higher prices for goods and services. Ultimately, Aruban consumers bear the cost.
AFTA has issued several recommendations to reduce payment card transaction fees. The key recommendation is for Aruba to introduce regulatory limits on interchange fees, similar to those applied in many other regions. Such regulation would cap the maximum interchange fee set by card companies and help reduce the outflow of money from the local economy.
AFTA is Aruba’s independent and impartial competition authority, responsible for overseeing fair market practices. It investigates markets through information requests, interviews, and announced or unannounced site visits. When necessary, AFTA takes action against anti-competitive behavior. In 2026, AFTA will also begin exercising its legal mandate to provide collective consumer protection.
More information and the full report are available at www.afta.aw.
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