Although the Now 12 has a nominal annual rate (TNA) of 20% and a total financial cost (CFT) of 25%, it is a privilege that not everyone has, since although initially it was for all cards, from last year they cut that possibility and limited it only to those issued by banking entities.

The other plastics, issued either by Cencosud or CMR, for example, are excluded and must pay higher costs, which had a total financial cost of almost 200% at the beginning of the year.

Now the rate has been going down in line with the BCRA reference rate, however Cencosud has a TNA of 79% that becomes a CFT of 163% of real cost in the 12 installments, while CMR has a TNA of 80% and CFT 166%. Obviously, these rates are much higher than those charged by banks for the 12 installments outside Now 12, where the TNA is 69% and the CFT is 110%.

What is the reason for such a difference between TNA and CFT, which is what one really ends up paying? The total financial cost includes not only interest plus 21% VAT on interest, but also commissions and other charges related to the financing of the sale.

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“There is a rise in sales with Now 12 to the detriment of fewer bank campaigns, they recognize in the banks.

The program offers a preferential rate that is made up of a contribution from the National State and public and private banks. The difference between the market rate occurs because it works as a subsidy by the State where consumers and merchants benefit. The variation of the Now 12 rate is determined by the Central Bank.

What changed a lot was the bank promotions of interest-free installments that were made, since several banks unsubscribed from the group promotions and each one is looking for a direct relationship with the acquirers to have their own business strategy model for to your customer.

“Before you had a pool of banks or acquirers who proposed a systemic agreement with large retail chains or airlines, and there was a certain amount of interest-free installments with all banks. So the processor, on behalf of all the banks, with that market power, went and negotiated on behalf of all the 12 installments without interest. But with the multiacquisition a different model starts, since the rules of the market have changed and each bank will negotiate on its own with a retailer to be able to have installments without interest, which is convenient for the business because that way you gain more influx of people, he explains. the Product Manager of a leading bank