RBA wants transaction fee on credit cards

Reserve Bank of Australia Governor Ian Macfarlane thinks consumers should pay a transaction fee every time they use their credit cards. Macfarlane said fee-free transactions are meant to encourage people to use their cards. Shops and businesses are “massively subsidising” cardholders, particularly the customers who avoid fees by paying off their balances within the interest-free period, he said. The RBA also supports moves to force banks and other ATM operators to display their charges to customers of other institutions and will soon turn its attention to the level of interchange fees on electronic Bpay transactions.