Merchants fight interchange fees

Credit card merchants in Australia are lobbying for the Reserve Bank of Australia to follow European regulators in removing interchange fees. The Australian Merchant Payment Forum chairman, Russell Zimmerman, said that every central bank and regulatory body that had reviewed interchange practices had found that the fees are inflated or unnecessary and cost Australian consumers $1 billion every year. However the banks and card schemes have questioned whether retailers pass on any savings coming from interchange fee cuts and instead some companies engage in profiteering through excessive surcharging.

By The Australian Financial Review