Open letter to the Government of St. Maarten: Banking fees, digital payments and fairness for the people and businesses of St. Maarten

The Board of Directors of the St. Maarten Chamber of Commerce and Industry has taken note of the instant-payment fees recently published by the Centrale Bank van Curaçao en St. Maarten (CBCS). The figures raise fair questions.

The CBCS currently charges participating financial institutions XCG 0.35, approximately US$0.20, per instant-payment transaction. Yet customers in St. Maarten may pay anywhere from nothing to as much as XCG 6.27, or US$3.50, for an online transfer, depending on their bank.

The Chamber understands that the CBCS fee is not the only cost carried by commercial banks. Banks have technology, cybersecurity, compliance, staffing and other operating expenses. We also recognize that commercial banks determine their pricing and that neither the Chamber nor Government can simply dictate what a private bank should charge. But that does not mean we should not ask questions.

Under the National Ordinance governing the Chamber of Commerce and Industry, the Chamber represents trade and industry in St. Maarten and may provide advice and make proposals to Government on matters affecting our business community. We believe this is one of those matters.

St. Maarten is moving toward a more digital economy. The Chamber supports that progress. But as businesses and residents become increasingly dependent on electronic payments, these services must remain accessible and reasonably affordable.

For someone making one transfer, a few dollars may not seem significant. For a small business making 100 or 200 transactions every month, it adds up quickly. And when the cost of doing business increases, some of that cost eventually finds its way into the prices consumers pay.

This is therefore not only a banking issue. It is a business issue, a consumer issue and ultimately a cost-of-living issue.

We are not asking banks to operate without earning a reasonable return. Nor are we suggesting complicated fee structures based on the size of every business. We are asking whether simpler solutions can be found.

Could banks offer reasonably priced monthly transaction packages? Could certain domestic electronic transaction costs be capped? Could businesses processing large numbers of local payments benefit from bundled transactions instead of repeatedly paying individual fees? These are practical solutions worth discussing.

There is also an important question about the savings created by digitalization. The CBCS reduced the fee it charges participating financial institutions for instant payments by 30 percent effective January 1, 2026, as increased transaction volumes created greater efficiencies.

If the system is becoming more efficient and the cost to financial institutions is coming down, how much of that benefit is reaching the customer?

The Chamber therefore calls on Government to engage the CBCS and the banking sector on the affordability and transparency of electronic banking in St. Maarten.

We recognize the limits of what Government and the CBCS may legally compel commercial banks to do. Previous court proceedings concerning the 1% licence fee demonstrated that certain statutory transaction-related costs incurred by banks may lawfully be passed on to customers.

For that reason, the Chamber is not promising the business community an outcome that may fall outside Government’s or the Central Bank’s legal authority. We are asking them to use the authority they do have.

Bring the banks to the table. Explain the differences in fees. Examine whether customers are being treated fairly. Determine whether the efficiencies created by digitalization are being shared. And identify practical ways to reduce the cumulative burden on businesses and consumers.

There is also a broader question. As Government policy and our financial system continue moving businesses and residents toward electronic payments, what protection should exist when the cost of participating in that system becomes unreasonable?

And where an unreasonable financial burden can be demonstrated, should Government and the financial sector consider relief through credits, reduced fees or another appropriate mechanism?

We are not stating that businesses or consumers currently have a legal right to compensation. That requires proper legal determination. We are saying the question deserves to be asked.

The Chamber supports digitalization and a strong, stable banking sector. But we also represent the businesses paying these charges every day.

Our position is simple: progress should make doing business easier and more efficient, not simply more expensive.

We therefore respectfully ask Government, the CBCS and the banking sector to come together, provide clear answers and pursue practical solutions.

A modern banking system must work for our financial institutions, but it must also work for the businesses and people they serve.

Respectfully,

Tamara Leonard
President
St. Maarten Chamber of Commerce and Industry

On behalf of the Board of Directors

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