Card charges questioned
The Reserve Bank of Australia has said that it is not concerned about merchants over-charging for credit and debit transactions. The RBA believes that surcharges account for only 5 per cent of transactions and that market forces are sufficient to ensure that they do not rise above this level. Payments Australia disagrees with a spokesman saying that surcharges are higher in less competitive industries. Some small to medium businesses charge 2 to 3 per cent on top of the 1.2 to 1.5 per cent they have to pay to their bank. The bottom line for the RBA is that consumers would stop shopping at retailers with higher charges.