CBA opposes cap on credit card surcharging

The Commonwealth Bank of Australia will lobby the Reserve Bank to scrap a proposed cap on credit card surcharges, one of the central bank's main aims in its reform of the payment system.

Australia's largest bank said it would support an alternative plan that meant merchants could only charge customers for the actual cost of carrying out a transaction, based on individual credit card schemes.

In the submission, the CBA's general manager of reputation, Stuart Woodward, said aligning surcharges to merchant fees would be of greater benefit to credit card customers.

Mr Woodward said a cap would benefit major companies more because the cost of an individual credit card transaction was relatively lower for them than smaller merchants.

Source: The Australian

Don't miss these hot deals

Popular Home loans

Popular Credit Cards