AFIP controls your card expenses: from what amount

Banks have to report the movements of users’ accounts and credit cards from a minimum amount of consumption

By iProfessional

08/24/2022 – 08:40 a.m.

In an economy in crisis, with inflation in July of 7.4% according to INDEC and with prices that do not stop rising, Argentines are increasingly using their Credit cards to make consumptions both in the local currency and in dollars. This trend continues to grow, especially through promotions, discounts or installments made through electronic commerce.

According to A recent report by Prisma Medios de Pago, between June and August continued the year-on-year growth in the number of transactions with credit and debit cards. Those of credit grew 10% and those of debit, 23%commented Julián Ballarino, head of institutional relations of the firm.

Debit card purchases remained above 50% of overall volume of this type of cards for the third consecutive quarter, while Plans Now continue their growth trend in the share of credit card consumption.

From what amount AFIP controls your card expenses in August

In this context of growth in credit card transactions, banks must report movements in users’ accounts and credit cards based on a minimum consumption amount. The latest amount was recently released by the Federal Administration of Public Revenues (AFIP).

Through resolution, rose from $30,000 to $90,000 the minimum number to inform the accreditations, withdrawals, account balances and time deposits.

With these modifications, banks will be able to streamline operations and, in turn, They will receive automatic and permanent information on monthly accreditations, withdrawals, account balances, term deposits and card consumption.

From what amount must banks inform the AFIP of account movements?

On the other hand, the strong rise of the interest rates that the Central Bank applied last week will have an impact on the pockets of consumers who have debts with their cards. That for some reason they cannot afford the full payment due. For the first time in recent years, that cost exceeds 100% per year.

On average, the total financial cost (CFT) to refinance the credit card balance will be around 105% per year from today.

This is a cost that just a month ago was in the 86.8% annual average at leading banks.

This happened due to the successive rises in the rates applied by the Central bank in the last weeks. The nominal annual rate, which at the beginning of July stood at 57% per year, now it jumped to 71.5% annual nominal.

However, there is one thing to keep in mind: inflationary acceleration opens the possibility that this year’s inflation will approach -or even exceed- 90%, with which the new cost to refinance the cards exceeds the inflationary projection for this 2022 by just a few points.

The problem is that very salaries will hardly improve by a similar percentage. Put another way: workers’ earnings are likely to lag behind inflation. And further back, obviously, than the cost to refinance debt.

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