The Reserve Bank of Australia (RBA) has initiated a review into Retail Payments Regulation, focusing on the costs merchants incur when accepting card payments and the surcharging framework. The RBA has released an Issues Paper and is inviting stakeholders to provide detailed feedback on the current regulatory framework, as well as suggest potential regulatory responses. This input will be vital in shaping future reforms aimed at ensuring a safe and efficient payments system.
Card payments are widely used by Australians for their convenience and security. However, with growing concerns about the cost of living, there is increased attention on card payment costs and surcharging from both merchants and consumers. These issues are interconnected since lower card payment costs could reduce the likelihood of merchants imposing surcharges on consumers. Therefore, it is considered timely to review whether adjustments to regulatory settings could further decrease merchant card payment costs and assess if the RBA's surcharging framework remains suitable. It is noted that many years have passed since these rules were first implemented.
Stakeholders have until December 3, 2024, to submit written feedback.
Following this initial stage, detailed assessments of reform proposals will take place. If deemed in the public interest by the Payments System Board, further consultation on any proposed regulatory actions will occur before any decisions are finalized.