Government backs ACCC credit card call

The Federal Government has supported the RBA and ACCC’s report on the fee structure of Australia’s electronic payments system calling for increased competition in the credit card industry. Part of the RBA/ACCC report criticises the bank monopoly created by rules that prevent non-deposit taking institutions from becoming credit card issuers and suggests that this be reviewed. The Treasurer, Peter Costello, welcomed any reforms in the system that would encourage competition. Minister for Financial Services, Mr Joe Hockey, said that opening up the system could make way for major supermarkets and oil companies to become credit card issuers instead of just the banks.