Brazil Caps Meal Voucher Fees, Orders Interoperability in PAT Overhaul

Overview

• President Luiz Inácio Lula da Silva signed the decree on November 11, setting a 3.6% cap on merchant discount fees and a 2% ceiling on interchange.
• The new rules shorten merchant settlement to a maximum of 15 days, with companies given 90 days to comply.
• Large closed arrangements serving more than 500,000 workers must open within 180 days, and full interoperability across terminals is required within 360 days.
• The text bans abusive practices such as rebates, indirect discounts and cashback, with enforcement led by the Ministry of Labor and Employment.
• Portability was excluded for now due to technical and regulatory constraints, as incumbents criticize the changes and weigh legal action while retailers and new entrants welcome the pro-competition move.