AZE.US
Azerbaijan introduced new restrictions on card-to-card bank transfers on August 1, limiting both the number and volume of transactions.
Banking expert Emin Karimov said the main purpose of the measure is to curb tax evasion and reduce the use of personal bank cards for undeclared business payments.
Small shops, cafés and individual entrepreneurs have increasingly accepted payments through direct card transfers instead of using POS terminals, Karimov told local media. Although authorities had previously warned that businesses could face penalties for accepting payments this way, the practice remained widespread.
According to the expert, the daily limit of five card-to-card transactions should be sufficient for most consumers. Individuals generally use such transfers to send money to relatives, cover personal expenses or settle everyday payments.
Transactions exceeding the limit, however, may in some cases be linked to undeclared commercial activity or other operations that do not comply with financial regulations, he said.
Karimov rejected claims that the restrictions would encourage a return to cash payments. He said the five-transfer limit was unlikely to cause long lines at ATMs or a sharp increase in demand for cash.
The measure could also support the development of Azerbaijan’s fintech sector by encouraging businesses to adopt QR payments, payment links, POS terminals and virtual POS systems.
Karimov said greater use of official payment tools would make business revenues more transparent, improve tax reporting and help entrepreneurs access loans and other financial services with fewer administrative hurdles.
AZE.US