The Bank of Ghana (BoG) has announced its intention to cap Optional Issuer Fees (OIFs) on cross-currency card transactions at 2% in a move to protect consumers and uphold fairness in Ghana’s financial system.
The regulator will also require mandatory upfront disclosure of all applicable OIFs to customers before transactions are completed.
This upcoming directive was revealed by Dr. Johnson P. Asiama, Governor of the BoG, during a high-level meeting with chief executives of commercial banks in Accra.
According to Dr. Asiama, the Central Bank has identified a troubling rise in OIFs applied to card transactions involving currency conversion—a development that, while possibly reflective of genuine operational costs, has increasingly come under scrutiny for its lack of transparency.
Opaque fees undermining trust
“In principle, we understand that some fees may be necessary to offset real cross-currency costs,” Dr. Asiama acknowledged.
“But opaque pricing and limited disclosure have already begun to erode consumer trust and the integrity of our payment systems.”
The BoG Governor said that the new policy is part of a broader regulatory agenda to ensure financial stability, fairness, and discipline in the market.
The Central Bank is concerned that if left unchecked, hidden charges and arbitrary fees could severely damage public confidence in financial services.
The new regulation will not only place a hard cap on fees but also compel banks and card issuers to disclose all optional issuer charges at the point of transaction.
This will allow consumers to make informed financial decisions and better understand the total cost of using cross-currency payment services.
The move comes amid wider complaints from customers about surprise deductions on international card payments—deductions that many say they were neither warned about nor able to verify after the fact.
Beyond card transaction fees, the BoG is also zeroing in on questionable pricing models in the broader banking landscape. Dr. Asiama pointed to growing reports that some financial institutions continue to apply interest charges to credit accounts that have been inactive for extended periods.
“These are cases where the accrued interest ends up exceeding the original loan amount,” he explained. “Let me be clear: such practices are unacceptable.”
He noted that this trend distorts customer outcomes, misrepresents the profitability of banks’ loan portfolios, and undermines the principles of transparency and fair treatment that the financial sector is meant to uphold.
Directive part of five-pillar reform plan
This new OIF directive and pricing review are two elements of a comprehensive five-point regulatory plan being pursued by the Central Bank to restore confidence and discipline in Ghana’s financial system.
The overarching aim, according to the Governor, is to ensure that consumer protection becomes central to banking practice, not an afterthought.
The Governor emphasized that the BoG expects all banks to revisit their pricing frameworks, review how charges are applied, and eliminate any structures that are not ethically or commercially defensible.
A call for ethical and transparent banking
Dr. Asiama urged banks to realign their fee models with the principles of responsible banking.
“We expect ethical conduct not just in lending practices but also in how fees are structured and communicated,” he said.
He added that the Central Bank would not hesitate to take regulatory action against institutions that continue to engage in predatory pricing or fail to align with evolving consumer protection standards.
Consumer-centric reforms are the future
As Ghana’s financial sector undergoes rapid digital transformation and expanded global integration, the BoG’s message is clear: banking practices must keep pace with rising expectations for fairness, transparency, and accountability.
With these reforms, the Central Bank is signaling a new era where consumers are not just seen as account holders but as rights-bearing stakeholders in the financial system.
The upcoming directive on OIFs is expected to be published formally in the coming weeks, with implementation timelines and compliance mechanisms to be outlined clearly to all financial institutions.
