SBP caps card payment charges at fuel stations to boost digital payments

The State Bank of Pakistan (SBP) has introduced a new framework to promote digital payments at fuel stations by capping transaction charges on card payments and directing banks to expand Raast QR payment acceptance across petrol pumps nationwide.

Under the new framework, the Merchant Discount Rate (MDR) for debit and credit card transactions at fuel stations will be capped at Rs1 per litre, while the Interchange Reimbursement Fee (IRF) will be limited to Rs0.20 per litre for purchases of fuel and related products.

The central bank said the special pricing arrangements would remain in effect until January 31, 2027, and would apply to all payment cards issued in Pakistan.

The SBP also instructed commercial banks to work with fuel station operators to enable Raast QR-based payments, allowing customers to make digital payments through Pakistan's instant payment system.

The central bank said the initiative aims to accelerate digital payments in the petroleum sector, where cash transactions remain dominant despite the presence of more than 15,000 fuel stations across the country.

The Pakistan Petroleum Dealers Association (PPDA) welcomed the decision, saying lower transaction charges would encourage wider adoption of digital payment facilities at petrol pumps. The association, however, reiterated its demand for a complete waiver of bank charges on card payments.

According to the latest SBP data, 68.3 million payment cards are currently in circulation across Pakistan.