RBA tells card providers to slash fees

The Reserve Bank has issued new guidelines to the payments associations which if enacted will further reduce the cost of credit card interchange. The RBA has provided its strongest signal yet that it wants further competition and clarity in the market so consumers can benefit from the falling costs in interchange. The RBA wants the industry to bolster the EFTPOS system so it will provide a genuine competitive system to either Visa or MasterCard. The RBA has said that if changes were not made it will cut the interchange costs and align them with EFTPOS and scheme debit. Cutting interchange costs will therefore provide an incentive to promote EFTPOS.

Source: The Australian Financial Review