The Reserve Bank has laid out its timetable to progress its review of merchant card payment costs and surcharging.
Following a meeting of the Payments System Board yesterday, the Board said it discussed “various policy options stemming from its review into card payment costs and surcharging aimed to promote the public interest by supporting competition, efficiency and safety in the payments system.
“The RBA expects to release a consultation paper in July, which will seek feedback on the Board’s preliminary conclusions and draft revisions to the RBA’s standards.”
This review is widely anticipated to lead to a curbing, or even an outright ban, on surcharging.
The federal government has said it expects banks and payments providers to voluntarily end surcharging on debit payments by the end of 2025.
There is a question mark over the fate of surcharging on credit card payments.
Many in the industry are also looking for the RBA to take steps to bring down scheme fees.
There was no mention in the PSB statement of interchange, though the longevity of established arrangements for interchange must be doubtful as merchant fees (presumably) fall and surcharging practices are banned.