The Reserve Bank of Australia has announced significant reforms to the credit card industry in Australia.
The Australian Bankers’ Association has responded with a press release on the reforms.
Given that the RBA is looking to these regulations to reduce the costs paid by the community for the retail payments system, it is critical that the RBA outlines clear performance benchmarks for its regulatory regime and reviews them regularly. The ABA encourages the RBA to prepare an active information program about its changes to the credit card system, so that consumers fully understand the potential effects on their credit cards.
Possible impacts include reduced costs for credit card acceptance for merchants and possible surcharges to consumers for making payments with credit cards instead of cash — both of which may affect Australian card issuer profitability.
The Associated Press has a story covering the reforms.
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