For countless consumers across Belize, running into arbitrary minimum purchase requirements or unexpected surcharges when paying with a credit or debit card has long been a persistent source of frustration. Now, the country’s top financial regulator is stepping up its long-running campaign to stamp out these controversial industry practices, framing them as harmful to consumers and counter to national goals for broader financial inclusion.
Kareem Michael, Governor of the Central Bank of Belize, explained that the issue has plagued shoppers for years, and he has even encountered the unfair practices firsthand during his own regular transactions. In one recent example, Michael shared that he attempted to purchase roughly $9 worth of goods at a local grocery store, only to be turned away when he tried to pay with his debit card because the store enforced a $15 minimum card purchase requirement, forcing him to pay with cash. When he returned to the same outlet for another sub-$15 purchase later, the store had adjusted its policy — but not to the benefit of customers: it instead added a mandatory $1 surcharge for processing debit card payments for small transactions.
Many merchants that impose these rules argue that minimum purchase thresholds and surcharges are necessary to offset the transaction processing fees they are required to pay to financial institutions. But regulators push back that these practices are fundamentally unfair to consumers and directly contradict the core mission of Belize’s financial system.
The Central Bank is now collaborating closely with the Belize Bankers Association and local credit unions to develop a permanent solution to the problem. Michael noted that discussions between stakeholders have been productive, with proposals ranging from strict outright bans on the practices to more nuanced frameworks designed to balance the needs of both merchants and consumers. The regulator is aiming to finalize a resolution in the near future.
Michael emphasized that the campaign against these unfair card practices is not an attempt to push Belize toward a fully cashless economy. Instead, it centers on protecting the most vulnerable members of society, who are disproportionately harmed by policies that disincentivize card use. When merchants impose extra costs or barriers to card payments, they push many people away from participating in the formal financial sector entirely, undermining years of work to expand access to affordable financial services across the country. Ending these abusive practices, Michael said, is a top priority for the regulator and its industry partners.