Credit Card Cash Advance Fee Increased to 5 Percent

A new decision has been made regarding credit card cash advances in Turkey. According to a notification published in today’s issue of the Official Gazette, the monthly maximum contractual interest rate for cash advance transactions made from credit cards and overdraft accounts has been increased from 4.42 to 5 percent.

This increase could have an impact on the market and how people use their credit cards. With the interest rate on cash advances going up, consumers may think twice before borrowing money in this way.

In addition to this decision, the Central Bank has issued an instruction to banks regarding a monthly increase target for the TL share of legal entities and real persons. The Central Bank had previously not set a target for this share, but as of August 18, 2023, banks will be required to maintain the level. If they fail to meet the target, a commission rate will be applied.

These new regulations and instructions will come into effect immediately, so consumers and banks alike will need to adjust to these changes in the coming days. It will be interesting to see how these decisions impact the financial sector in Turkey.

 

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