RBA takes aim at card surcharges

Discussion in 'General Credit Card Discussion' started by Deleted User, Jun 9, 2011.

  1. Deleted User

    Deleted User Guest

    #1 Deleted User, Jun 9, 2011
    Last edited by a moderator: Jun 9, 2011
    Lets see if the RBA can fix the mess they are responcible for... :p

    ''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

     
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  2. awilcockson

    awilcockson Established Member

    Jul 14, 2010
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    About time ... Of course we all know nothing will come of it.
     
  3. lovestotravel

    lovestotravel Senior Member

    Sep 18, 2008
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    I'll believe any changes when they happen!!!!

    Wake me then
     
  4. kpc

    kpc Senior Member

    Mar 11, 2003
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    you guys are so cynical.......



































    .....but I suspect you are all correct:evil:
     
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  5. thewinchester

    thewinchester Established Member

    Oct 3, 2006
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    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.
     


  6. fantasy86dj

    fantasy86dj Member

    Aug 6, 2010
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    It would be really nice if something positive came out of it but the chances......
     
  7. oz_mark

    oz_mark Enthusiast

    Jun 30, 2002
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    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!
     
  8. Mal

    Mal Enthusiast

    Dec 25, 2004
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    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-system/reforms/submissions-card-surcharging/accommodation-association.pdf is probably the strangest one that doesn't match reality. Which dilusional world does he live in?

     
  9. Deleted User

    Deleted User Guest

    #9 Deleted User, Aug 4, 2011
    Last edited by a moderator: Aug 4, 2011
    Reading some of those submissions makes me really really angry... :evil:

    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...

     
  10. albatross710

    albatross710 Established Member

    May 15, 2004
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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.
     
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  11. Mrmaxwell

    Mrmaxwell Active Member

    May 18, 2007
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    Airlines have become the biggest problem in regards to these cc charges. Charging a standard cc fee for an airfare REGARDLESS OF PURCHASE PRICE is just bonkers. More frustrating when there is no 'free' alternative method of payment offered :evil:
     
  12. drron

    drron Enthusiast

    Jul 4, 2002
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  13. burmans

    burmans Senior Member

    Feb 21, 2006
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    Yes, this is great news.

    As far as the definition of "reasonable" I think most people who have English as their first language would interpret reasonable in this case as meaning that the charges can be justified as reflective of the underlying costs. While I think that many words are somewhat ambiguous the term "reasonable" is one that has been in use in legal terms for a long term and has a well understood meaning with pretty of legal precedent. Companies may well try on the the idea that "we don't understand what reasonable means" line but I suspect their lawyers will be arguing against this approach as not sustainable.
     
  14. SeatBackForward

    SeatBackForward Established Member

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    Consultants will be engaged to come up with very sophisticated measures, indices, valuations, projections and historial trending to produce a very complicated calculation that will ultimately say "We are reasonably asking you to give us more"..A bit like how executive renumeration has become "fully disclosed"
     
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  15. eastwest101

    eastwest101 Established Member

    Oct 26, 2010
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    Cynical but true.....

    I would have thought the growth of online booking engines/sites without cc surcharges at all (or reasonable cc surcharges) would have eventually sorted this out, as consumers became more and more aware of the benefits of shopping online and around in different juristictions I think the hotels and airlines would eventually realise that this potential revenue stream just won't be available to them forever.

    Similar to the music industry's fight against digital music starting in the 1990's - a futile fight bound to end in tears. Its a shame that the RBA cocked it up/enabled them so much though.
     
  16. SeatBackForward

    SeatBackForward Established Member

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    Well there is always the option of offering to pay using cash, I have jars full of 5c and 10c coins. I'm sure that realistically, merchants would prefer the card payment over cash.
     
  17. JohnK

    JohnK Veteran Member

    Mar 22, 2005
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    It is good to view these threads 12 months later. Still no sign of credit card surcharges ending....
     
  18. markis10

    markis10 Veteran Member

    Nov 25, 2004
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    WOW have reversed their stance on debit cards, you can now once again use the credit button again.
     
  19. pauly7

    pauly7 Established Member

    Dec 8, 2004
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    Yup but takes someone to blink first and at the moment Virgin, Tiger, Qantas et al are more than happy to hold hands and collectively rip people off.
     
  20. whatmeworry

    whatmeworry Established Member

    Jan 22, 2007
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    There is no way any airline in Australia will give up this revenue stream and they will not change till the rules are changed.
     

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