Card transaction surcharges to be scrapped in RBA recommendation

Australian Community Media

The Reserve Bank of Australia's merchant card payment report recommended fees be axed on EFTPOS, Mastercard and Visa card transactions because they don't help consumers make more efficient payment choices. Consumers are estimated to pay $1.2 billion in surcharges on payments each year, the equivalent of $60 per card-using adult.

Transcript

00:00We at the RBA have been reviewing our rules on merchant card payment costs and surcharging.

00:05So we think the time has come to address some of these high costs and inefficiencies in the system.

00:11So we're putting forward today three key proposals.

00:14The first one is to remove surcharging on FPOS, MasterCard and Visa cards.

00:19This could save consumers $1.2 billion annually.

00:23The second thing is we plan to lower interchange fees to reduce businesses' payments costs.

00:28This change could save businesses $1.2 billion a year.

00:32And the third thing is we're going to require card networks and other payments providers to publish their fees.

00:39Today's report's about cards.

00:41But just on cash, I want to say it's also important that the RBA, we are committed to supporting the Australian Government's objectives

00:49to ensure it remains a viable means of payment for those who need or want to use it.

00:58We're going to close it.

01:03Thanks.

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