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Lets see if the RBA can fix the mess they are responcible for... ''While there is potentially a large variation in the … costs faced by merchants, justifying significant variation ...
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  1. #1
    Suspended Deleted User's Avatar
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    RBA takes aim at card surcharges

    Lets see if the RBA can fix the mess they are responcible for...

    ''While there is potentially a large variation in the … costs faced by merchants, justifying significant variation in surcharges, concern has been expressed … that some merchants may be using surcharging as an additional means of generating revenue, rather than simply covering the costs of card acceptance''

    Credit card fees | Reserve Bank considers fee cap


    THE Reserve Bank will consider capping credit card fees charged by hotels, airlines and taxis amid claims consumers are being hit with excessive charges.
    The RBA has launched a review of credit card surcharging, raising concerns that some businesses are using excessive fees to make money rather than to cover the cost of the transaction.
    The review marks a return to the landmark credit card reforms pushed through by the RBA last decade, which were designed to make payment costs more transparent while eliminating cross-subsidies.


    Read more: http://www.smh.com.au/money/rba-take...#ixzz1OlQurUqj
    Last edited by Deleted User; 9th June 2011 at 06:27 PM.

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  3. #2
    Established Member awilcockson's Avatar
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    Re: RBA takes aim at card surcharges

    About time ... Of course we all know nothing will come of it.

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    Senior Member lovestotravel's Avatar
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    Re: RBA takes aim at card surcharges

    I'll believe any changes when they happen!!!!

    Wake me then

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    Re: RBA takes aim at card surcharges

    you guys are so cynical.......



































    .....but I suspect you are all correct
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    Re: RBA takes aim at card surcharges

    Sweet, delicious irony.

    The same group of bankers who thought deregulating the interchange market allowing introduction of merchant service fees to be passed onto the consumer now thinks it was a bad idea and needs fixing.

    I've read the RBA's report, and I intend on making a submission on the topic - specially since the RBA seems to be (once again) giving EFTPOS Payments Australia Ltd (EPAL) a free pass here.

    EPAL aren't being considered for their merchant service costs, let alone the what I consider criminal protection they pay in the form of substancial "rebates" they pay to big merchants for them continuing to accept. They're also not tacking the fact that these payments and the changes to interchange have permitted merchants to actively discriminate against and decline acceptance of card subtypes within the scheme.

    Yeah, I'm taking aim at Woolworths Limited here - but there's a wider issue that needs to be addressed if EPAL wants to be taken seriously on a level playing field for electronic payments.

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    Re: RBA takes aim at card surcharges

    It would be really nice if something positive came out of it but the chances......

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    Re: RBA takes aim at card surcharges

    I just had a look through the public submissions (RBA: Submissions on Card Surcharging). Haven't found the one from thewinchester yet.

    It would be fair to say that just reading the name of the entity making the submission means you can pretty much guess the arguments within each submission!
    Something big is about to happen.

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    Re: RBA takes aim at card surcharges

    Quote Originally Posted by oz_mark View Post
    I just had a look through the public submissions (RBA: Submissions on Card Surcharging).
    Had a read through some of them. The one from the Accommodation Association of Australia's CEO (Richard Munro) http://www.rba.gov.au/payments-syste...ssociation.pdf is probably the strangest one that doesn't match reality. Which dilusional world does he live in?

    The Association’s members include major international hotel chains, including Accor Hotels, Mirvac Hotels and Resorts, Toga Hospitality, Mantra Group and InterContinental Hotels Group.

    ...

    Tourism accommodation businesses within Australia do not impose excessive surcharges on customers who pay by credit card for goods and services provided by these businesses.

    ...

    The highly competitive nature of the industry means that the imposition of additional costs on consumers – such as credit card surcharges – is a major decision for an accommodation business.

    Similarly, the level of such costs is determined only once a number of factors are taken into consideration, notably cost recovery. Therefore, there is a strong element of self-regulation around fees and charges, including credit card surcharges, in Australia’s accommodation industry.

    ...

    On behalf of the industry, the Accommodation Association rejects any suggestions that tourism accommodation businesses are using credit card surcharges purely as a means of raising extra revenue or “profiteering”.

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    Re: RBA takes aim at card surcharges

    Quote Originally Posted by oz_mark View Post
    I just had a look through the public submissions (RBA: Submissions on Card Surcharging). Haven't found the one from thewinchester yet.

    It would be fair to say that just reading the name of the entity making the submission means you can pretty much guess the arguments within each submission!
    Reading some of those submissions makes me really really angry...

    So many tossers out there

    How can a 10% surcharge be acceptable...? Or perhaps I am missing something here....

    Moving on, Its natural for Visa to have the position below, and this line has been heavily discussed here on AFF and is something I strongly believe is why surcharging above the merchant fee is wrong, wrong, wrong...

    Allowing retailers to surcharge forces consumers to pay for the
    substantial benefits that merchants receive from accepting cards, which
    include greater pools of customers and increased sales, increased
    security of payment, lower physical security costs and faster payment
    acceptance and settlement times, while generally shifting more than
    100 percent of the cost of electronic payments to consumers, with no
    regard to these merchant benefits.
    Furthermore, surcharging only one payment method – card payments –
    has the net effect of completely muting the true cost of other payment
    methods. Considering the widely held industry view that the true cost of
    accepting payment methods such as cash and cheque are higher or
    considerably higher than electronic payment methods, we feel that
    selective surcharging in the manner permitted in Australia is deeply
    problematic.
    Australians paying with a card and paying a card usage surcharge are
    effectively also paying the cost of that business accepting other
    payment methods, such as cash, which have been absorbed into the
    business running costs and thus already form part of the base price of
    the good or service that the card surcharge is added to. This is
    inequitable, unfair and amounts to an economy wide disincentive to the
    electronification of payments.
    Last edited by Deleted User; 4th August 2011 at 11:00 PM.

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    Re: RBA takes aim at card surcharges

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    Before the RBA introduced the changes I recall the standard merchant rates used to be 4-5%, now we are bouncing around 1%. Good.

    Then there is Cabcharge - they need to be brought to account.

    trippin_the_rift and cove like this.

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