Brazil to Cap Fees, Cut Delays and Force Interoperability in Meal and Food Voucher Market

Overview

• President Luiz Inácio Lula da Silva is set to sign the PAT decree at the Planalto this afternoon, introducing new rules for vale-refeição and vale-alimentação.
• The measure will cap merchant discount rates at roughly 3.5%–4% (with discussion around 3.6%) and is expected to include transition periods to phase in changes.
• Settlement times to restaurants and supermarkets will drop to about 15 days from current averages of 30–60 days, easing cash flow pressures on merchants.
• Large operators will be required to enable interoperability through open arrangements, allowing any standard card terminal to accept benefit cards and broadening acceptance networks.
• Portability will not be implemented now due to technical hurdles and Central Bank reluctance, while incumbents represented by ABBT oppose the changes and retailers and fintech entrants anticipate lower costs and more competition.