Credit card bank back down
After the ACCC threatened legal action against the major banks for fixing of credit card ‘interchange’ fees (charges between banks for processing transactions on each others' credit cards), the CBA, Westpac, ANZ, St George, BankWest and Bank of QLD have backed down and agreed to a review of the fee system. The three-month review will examine how interchange fees are decided and if it stops new entrants into the system. The only bank to reject the review is the NAB who will face court action this month. The ACCC believes that merchants are being charged higher costs for customer credit card transactions with the extra cost being passed on to consumers. The ACCC review may result in lower fees for both consumers and small businesses.