JoPACC consults Banks on the Fee Model for CliQ
JoPACC hosted a meeting that was attended by representatives of all sixteen banks currently offering CliQ services - the instant payment system- to their clients to discuss the proposed fee module for CliQ transactions. Following discussions with several banks about their interest in setting fees on CliQ transactions, JoPACC sought the consultation of banks in organizing the fee structure and developed and shared a proposed fee module with all participating banks to receive their feedback on it. The fee model proposed by JoPACC includes JoPACC’s share of the fees in the event that a bank opts to place fees on transactions made on CliQ.
The proposal states that JoPACC will not take any fees in P2P transactions if the bank doesn’t set fees on them in an endeavor to encourage the market to keep the service free of charge. If the bank decides to place fees on P2P transactions, JoPACC will take a fixed fee and share it with the receiving bank. Return payments have no cost on their issuer and thus will not be affected by the proposed fee model. JoPACC further encourages banks to keep CliQ transactions free of charge until the end of this year and enforce any changes next year. The proposed model also addresses fees on QR-based merchant payments through CliQ, where JoPACC will deduct a small percentage of the fee while a more significant share of the fees goes to the issuer bank. The acquirer in merchant payments has a profit share in conducted transactions, based on the set merchant discount rate (MDR). The proposed cost of acquiring on CliQ is very minimal, aiming to reduce costs of digital payment at merchants and increase digital payment acceptance outlets within Jordan.
Following the session, JoPACC sent a survey to all participating banks to collect their input on the fee model, gather their preferences and concerns, and weigh them in. The next step is to submit the final fee model, which incorporates the sector’s feedback and suggestions, to JoPACC’s board for their approval.
JoPACC engages the market regularly in any intended changes and developments on its systems and solutions and gives due consideration to preserving healthy competition in the market to foster the growth of the payments ecosystem as a whole.