RBA invites submissions on card surcharging
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The news: The Reserve Bank of Australia (RBA) has released an issues paper as part of a review into merchant card payment costs and surcharging.
The context: The RBA said the review will examine the costs merchants face when accepting card payments and the framework for surcharging.
The central bank said it is "timely" to review whether regulatory settings could be adjusted to put further downward pressure on merchant card payment costs and whether the RBA’s surcharging framework remains fit for purpose.
It said that "in an environment of heightened concern around the cost of living, card payment costs and surcharging are attracting more attention from merchants and consumers".
The issues paper invites stakeholders to provide detailed feedback on the current regulatory framework and to suggest potential regulatory responses.
Stakeholders can provide written submissions by 3 December 2024.
The RBA said that detailed assessments of reform proposals would form the next stage of the review, ahead of a possible consultation on regulatory action.
The announcement comes after the Albanese government said it is “prepared” to ban debit card surcharging from 1 January 2026, pending a consultation process with the RBA, which regulates Australia’s payments system.
The source: RBA media release
