Latest news with #interchange fees
Finextra
21-07-2025
- Business
- Finextra
RBA proposes to lower cap on interchange fees
The Reserve Bank of Australia (RBA) has today released a Consultation Paper as part of its Review of Merchant Card Payment Costs and Surcharging. 0 This follows an extensive public consultation process since the release of an Issues Paper in October 2024. The Payments System Board has reached the preliminary view that it would be in the public interest to: remove surcharging on eftpos, Mastercard and Visa cards. Consumers currently pay around $1.2 billion in card surcharges each year. Surcharging is no longer achieving its intended purpose of steering consumers to make more efficient payment choices: avoiding surcharges has become harder as cash usage has declined, businesses are increasingly charging the same surcharge rate across debit and credit and there are significant challenges with enforcing the current surcharging rules. Removing surcharging would make card payments simpler, more transparent and help to increase competition in the card payments system. lower the cap on interchange fees paid by businesses. This could save businesses around $1.2 billion in interchange fees a year. Around 90 per cent of Australian businesses are estimated to be better off under the proposed policies. The proposed reductions to interchange caps would benefit small businesses the most, as they tend to pay fees closer to the existing caps. Introducing caps on foreign interchange fees would help to lower fees for all businesses accepting international cards. require card networks and large acquirers to publish the fees they charge. Improving transparency and competition will help all players better understand the fees they are charged and make it easier for businesses to shop around for a better deal. The RBA invites feedback on the proposed policy options and draft standards by 26 August 2025. The RBA will draw on this feedback to finalise reforms that are in the public interest in line with its objectives of a safe, competitive and efficient payments system. The RBA intends to publish these conclusions and an implementation timeline for any regulatory steps by the end of the year.
RNZ News
16-07-2025
- Business
- RNZ News
Commerce Commission moves to lower debit and credit card surcharges
The overall cost of interchange fees is around $1 billion for businesses, which were often passed onto customers through surcharges. Photo: 123RF The Commerce Commission has moved to lower interchange fees paid by businesses to accept Visa and Mastercard payments. The regulator has issued a final decision, saying the cost was too high, and their decision would save businesses around $90 million a year. It said the average business would save around $500 each year in lower fees, but individual businesses could save more or less, depending on the mix of transactions they accept. The Commission put the overall cost of interchange fees at around $1 billion for businesses, which were often passed onto customers through surcharges and higher product costs. "This is an important step in our continued work to cut costs for businesses and consumers," Commerce Commission chair John Small said. "Our latest decision builds on the initial fee caps set in 2022, which led to $140 million in annual savings to New Zealand businesses." "This decision cuts the cost for businesses accepting payments made through credit cards and foreign-issued cards, which are often the most expensive for businesses to accept." The Commission said it would also explore what regulations may be needed to address excessive surcharging. The Commission expected payments providers to support businesses understand their costs to accept these payment types. It has also decided not to regulate fees for commercial credit card or prepaid debit card payments. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
