6 days ago
Reserve Bank reveals blueprint to axe card surcharges
RESERVE BANK OF AUSTRALIA'S PROPOSED SURCHARGES BAN
*The Reserve Bank of Australia has proposed removing surcharges on EFTPOS, Mastercard and Visa card transactions, which it says will save consumers $1.2 billion a year
*It would also lower the cap on interchange fees businesses pay, to try and save them $1.2 billion and offset the surcharge changes
*Card networks will have to publish the fees they charge to increase transparency and competition
*The RBA's recommendations went beyond the government's proposal, which suggested banning surcharge fees only on debit card transactions
WHAT PEOPLE SAY
* "The payments landscape is always evolving and it's critically important we keep pace to ensure it remains safe, competitive and efficient."
- RBA Governor Michele Bullock
* "We take the RBA's views seriously and will consider their recommendations along with broader industry feedback."
- Treasurer Jim Chalmers
* "The rules around surcharging are more than 20 years old and consumers rightly expect them to keep pace with changes in how they make payments."
- Australian Banking Association spokesperson
* "For small businesses already managing tight margins, this means those costs would have to be absorbed into base prices."
- Council of Small Business Organisations Australia chair Matthew Addison
* "A blanket ban on surcharging will undermine small businesses, reduce price transparency and mandate price hikes across every menu in Australia."
- Australian Restaurant & Cafe Association CEO Wes Lambert
* "Without fundamental reform and more legislative intervention, these unfair and inflated fees will continue to decimate small business profit margins, increase prices, reduce productivity and possibly lead to closures."
- Independents Payment Forum co-founder Bradford Kelly
* "More people are paying by card out of necessity and they shouldn't be penalised for it. Surcharges act as a barrier to people using their own money."
- Anglicare Sydney food and financial assistance head Paul Fitzpatrick
