Australia Update On Payments System Issues
The Reserve Bank of Australia has provided an update on several of the payments systems issues it has been studying including setting the acceptable range for interchange fees in the Australian EFTPOS debit payment service.
The Standard on The Setting of Interchange Fees in the EFTPOS System sets out the process for determining a cap and a floor for interchange fees in the EFTPOS system. In accordance with the Standard, using data supplied by acquirers, the Reserve Bank has calculated that the cap to apply to interchange fees in the EFTPOS system for the three years from 1 November 2006 is 5 cents. The Standard sets the floor on interchange fees at 80 per cent of the cap.Following implementation of these new arrangements, interchange fees which are paid by EFTPOS issuers to acquirers and currently average around 20 cents, will fall to between 4 and 5 cents for transactions that do not involve cash out. This outcome is consistent with that expected when the Standard was released in April 2006.
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