DEBIT CARDS – AUSTRALIA

Industry calls for more changes than just axing debit card fees

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Original article by David Ross, David Rogers
The Australian – Page: 13 & 19 : 16-Oct-24

The Reserve Bank of Australia has confirmed that it will investigate the regulation of the payments system, in the wake of the federal government’s proposal to ban debit card surcharges by 2026. Amongst other things, the RBA has indicated that its review will examine the costs that merchants incur when they accept card payments, and whether its surcharging framework is still ‘fit for purpose’. The Australian Banking Association’s CEO Anna Bligh argues that abolishing debit card surcharges would be a "win for consumers", although some observers contend that broader reform is needed.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN BANKING ASSOCIATION

Labor to ban debit card surcharges

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Original article by James Eyers, Lucas Baird, John Kehoe
The Australian Financial Review – Page: 1 & 18 : 15-Oct-24

The Reserve Bank of Australia will launch a review of payment costs for retailers, with the announcement of its review coming as the federal government flags its intention to ban debit card surcharges. A ban on these surcharges would impact many retailers, who currently pass them on to consumers; it is estimated that consumers are paying $1.5 billion annually on debit and credit card surcharges. The ban could be implemented from the start of January 2026, subject to consulation with the RBA, while the government will give the Australian Competition & Consumer Commission an additional $2.1 million to crack down on excessive surcharge fees.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Australians lose nearly $1 billion a year in card surcharges and the RBA has warned banks it has to stop

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Original article by Samuel Yang
abc.net.au – Page: Online : 5-Mar-24

Analysis based on figures from the Reserve Bank has revealed that Australians are losing $960.26 million a year in card surcharges, which can be significantly reduced through proper implementation of least-cost routing (LCR). LCR is an RBA scheme that seeks to cut card payment processing fees for businesses, and RBA governor Michele Bullock has threatened to mandate it by the middle of the year if a target of 80 per cent of business terminals being enabled with LCR is not met by then.

CORPORATES
RESERVE BANK OF AUSTRALIA

Banks, retailers in talks over card fees

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Original article by Eli Greenblat
The Australian – Page: 19 : 10-Mar-20

The Australian Retailers Association has estimated its members pay over $500 million a year in merchant fees on bank card transactions. ARA CEO Russell Zimmerman was invited to a meeting with Australian Banking Association CEO Anna Bligh and Commonwealth Bank CEO Matt Comyn on 9 March, at which the fees issue was discussed. An initiative known as ‘least-track routing’, which aims to boost competition within the debit card market and to help reduce card payment costs, was among the other topics discussed.

CORPORATES
AUSTRALIAN RETAILERS ASSOCIATION, AUSTRALIAN BANKING ASSOCIATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

King cash dethroned as cards lead a revolution at the till

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Original article by Richard Gluyas
The Australian – Page: 23 : 15-Sep-17

The ­Reserve Bank of Australia’s latest triennial customer payments survey highlights the continuing decline in the use of cash as a payment option, in favour of debit and credit cards. The proportion of consumer transactions that were carried out with cash has fallen from 70 per cent in 2007 to just 37 per cent in fiscal 2016. However, cash remains the most popular payment option for transactions costing less than $A10, while cash is still widely used by older people. There was also a 20 per cent decline in payments via cheque in 2016-17.

CORPORATES
RESERVE BANK OF AUSTRALIA

Airlines reject credit card surcharge gouge claims

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Original article by Shaun Drummond
The Australian Financial Review – Page: 6 : 10-Nov-15

Qantas and its Jetstar subsidiary impose a surcharge of between $A7 and $A30 on flights booked via a credit or debit card. However, Qantas’s Andrew Parker estimates that the carrier recovered only about 81 per cent of the full cost of such transactions in 2014-15. Virgin Australia has indicated that its surcharges also do not allow it recover the full cost of credit/debit card transactions. Queensland businessman Klaus Bartosch has rejected the airlines’ claims and has argued that the surcharges are too high.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, JETSTAR AIRLINES PTY LTD, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, VISA INTERNATIONAL, MASTERCARD AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET