Banks fight card fee cuts

Commonwealth Bank has hit back at plans to further cut the interchange fees banks charge each other to process credit card transactions. Since 2002 the Reserve Bank has forced the banks to cut the fees by about 50 per cent. Last year the RBA said it could slash interchange fees to zero and recently has warned the banks to cut the fees themselves or face more regulation. CBA chief executive Ralph Norris said cutting fees further would be a knee jerk reaction imposing costs on business and stifle innovation.

Source: Herald Sun