Friday, April 01, 2005

Australia Reforms Interchange Fees

Reserve Bank of Australia Credit Card Reforms


On 27 August 2002, the Reserve Bank of Australia (RBA) released its final reforms to credit card schemes in Australia. The reform measures involve:

The elimination of the 'no surcharge' rule allowing merchants to charge a fee or surcharge for credit card transactions from cardholders. This came into effect on 1 January 2003.
The adoption of a new cost based approach to the calculation of domestic interchange fees in credit card schemes. This is effective from 31 October 2003.

An access regime that allows non-banking financial institutions to become eligible members of credit card schemes. The commencement date for this element of the reforms is yet to be determined....