Threat to axe Visa debit cards

Building societies are threatening to dump debit cards or introduce new fees if the Reserve Bank does not abandon plans to reduce debit card transaction fees. The societies claim the cuts would render the cards commercially unviable. Institutions charge almost twice the average EFTPOS fee to process a Visa debit card transaction. They earn about 50 cents per $100 Visa debit card transaction but Visa said this would fall to 35-44 cents. The debit cards are also issued by credit unions, St George Bank and Bendigo Bank.