The Payments System Board is due next week to review the Reserve Bank of Australia’s final recommendation for credit and EFTPOS card reform
The Australian Financial Review reported “It is likely the to recommend about a 30 percent reduction in the so-called ‘interchange fees’ on transactions, the abolishment of restrictions on retailers surcharging for card payments and easy access to the card business for new competitors.”
It is believed that some panel members have been legally advised not to participate in the controversial “The effect the proposed RBA reforms will have on banking and retail profitability in Australia” discussion at the Cards Australasia conference next week.
“There is a huge focus on merchant fees globally, particularly on interchange, and it wouldn’t be unfair to say Australia is the centre of the world at the moment,” said Professor Steve Worthington, one of Britain’s leading experts on payment card systems, who will be addressing the Cards Australasia conference.
“Interchange was never that big an issue but now that more and more people are using credit cards, the retailers, especially – and others – have realised it is an enormous issue” Professor Worthington said
