SBP caps card payment charges at fuel stations till January 2027

The State Bank of Pakistan on Monday extended the special pricing mechanism for payment card transactions at fuel stations, aimed at promoting digital payments and encouraging the use of the Raast QR payment system, according to a circular.

To further facilitate the acceptance of digital payments at fuel stations and accelerate the deployment of interoperable Raast QR-based payment systems, the SBP has decided that certain arrangements will remain in effect until January 31, 2027, for all payment cards issued in Pakistan.

As per the SBP’s guidelines, the merchant discount rate (MDR) for all card-present transactions at fuel stations, when purchasing fuel and related products, will be capped at Rs1.00 per liter. Additionally, the interchange reimbursement fee (IRF) for these transactions will be limited to Rs0.20 per liter.

“During the above-mentioned period, Res [regulated entities] shall actively engage with their respective merchants (fuel stations) to ensure the enablement and availability of Raast QR-based payment acceptance for the purchase of fuel and related products,” the central bank’s circular said.

“The SBP will revisit these instructions on or around 31st January 2027 in the light of market response to this pricing mechanism,” it added.“These instructions shall be effective with immediate effect.”