Recent Development
The Banking Regulatory and Supervisory Authority (“BRSA”) and the Ministry of Trade updated the debit and credit card installment limits for purchases. The amendment to the Regulation on Bank Cards and Credit Cards (“Regulation”) and the amendment to the Regulation on Principles and Rules in Retail Trade (“Retail Trade Regulation”) entered into force with their publication in the Official Gazette dated August 15, 2018 and numbered 30150.
What’s New?
Retail Trade Regulation
- The installment payment plans retailers can provide to consumers are reduced. In this respect, the installment payment period for the sale of goods and services as of September 1, 2018 is limited to twelve months, whether a security is provided or not, including the periods during which a certain fee is paid to split the payments into installments or to postpone the payment.
- The installment periods for retail sales of televisions and audio and video systems will be limited to three months, while those of computers, tablets and mobile phones will be six months. Article 12/B also prohibits installment payments for jewelry purchases.
Regulation on Bank Card and Credit Cards
Purchases made with individual credit cards
- The 12-month general installment limit for purchases made through individual credit cards will remain in force. However, installment limits for different types of purchases were amended. In other words, purchases for certain types of goods and services other than the ones specified below will continue to be subject to the 12-month installment limit.
- Jewelry purchases: Prior to the amendment, these purchases were subject to four-month installments. The amendment bans installments on jewelry sales.
- Telecommunication and direct marketing related expenditures, expenditures made abroad, purchases related to food, alcoholic beverages, fuel, cosmetics and office supplies and purchases of products that do not include any concrete goods or services, such as gift cards, gift certificates and similar products: The current installment ban remains in force.
- Electronic equipment purchases: The installment limit was reduced from six months to three months.
- Computer purchases: The current six-month installment limit remains in force.
- Payments made to clubs and associations, and expenditures regarding airlines, travel agencies, transportation and accommodation: The installment limit was reduced from nine months to six months.
Expenditures related to health and social services and health product purchases and tax payments: The current nine-month installment limit remains in force.
Purchases made with corporate credit cards
The general installment limits for the purchases of goods and services with corporate credit cards and cash withdrawals from corporate credit cards were reduced from 12 months to nine months.
Conclusion
The general installment limit for purchases made with credit cards has not changed, the amendments in the abovementioned regulations impose an installment ban on certain types of goods and services and reduce the installment limits of various products and services.
