Argentina: In blow against Credit Cards, gov. brings back cash-payment discount

Argentina’s government has announced an upcoming decree that will, they say, bring great positive effects to consumers. With the overt goal of “making trade transparent”, and within the context of several litigious conflicts against some practices employed by the credit card industry, Production Minister Francisco Cabrera announced a new rule, to be published this week in the Official Bulletin, forcing all businesses to display the prices for products in both cash payment or when charged to a credit card.

Sources close to the ministry have said that the government’s intention is not to eliminate payments in instalments, a payment mechanism that gained mass appeal during the Kirchner administration, but to the contrary. Examples of government support are the continuation of the plan Ahora 12 and it’s successor, Ahora 18, which allows consumers to purchase products in monthly instalments over 12 or 18 months.

The new rule is intended to combat commercial campaigns that advertise a product in instalments without clarifying the effects of interest. Despite this, payment with a credit card tends to have additional costs, such as life insurance included in the credit card fees, and others. While there are vast differences between banks, some cases have seen excess earnings rise to 8%.

Full Content: Misiones Online

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