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Fintechs lose out as ACCC sidesteps action on steep FX fees

The ACCC has decided against decisive action into foreign currency transactions and cross border transfers despite arguments for greater transparency in the opaque market.

Andrew Cornell
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Fees, charges and exchange rates are often difficult to understand for consumers and small business. AAP/AAP Image.

The Australian Competition and Consumer Commission has elected to take no further action in cracking down on disclosure around fees and exchange rates on foreign cash exchange and international money transfer services.

The decision disappointed disrupters in the sector, including foreign exchange specialists and fintechs, and groups frequently impacted by the high fees and blunt exchange rates of traditional players like banks.

A new survey by Money.com.au found foreign exchange and annual fees on credit cards were the second most hated extra charges, behind only surcharges on debit cards.

“For small businesses, the impact of non-transparent pricing and FX (foreign money exchange) margins can be significant,” Council of Small Business Organisations of Australia CEO Luke Achterstraat told Capital Brief.