The Payments System Board of the Reserve Bank of Australia has decided it does not like the "no-surcharge" and "no-steering" rules that apply to payments using eBay Inc's PayPal system.A media release published by the PSB said it will hold discussions with PayPal "with a view to seeking the removal of these rules."The PSB noted that "where no-surcharge and no-steering rules have existed in other systems, the Board has encouraged their removal on the grounds that these rules can diminish competition in the payments system."American Express and Diners Club are two payment entities that modified their rules (and even gave undertakings to the RBA) under pressure from the PSB, even though the regulator did not formally make use of powers under the Payments System Act.The RBA would probably have used its regulatory powers in either case had they not cooperated, in order to achieve the wider objective of stamping out surcharging on payments made with credit cards. The RBA did, of course, impose regulations to this effect on issuers of MasterCard and Visa four years ago and these remain in force. If eBay digs its heels in, the PSB would have to undertake a formal process of consultation and establish a case to "designate" PayPal under the Act before it could make any rules restricting PayPal's actions.eBay's proposal earlier this year to restrict payments options for purchases at its Australian trading site produced a flurry of complaints to the RBA on the firm's conduct.