AUSTRALIA TO BAN SURCHARGES ON CARD PAYMENTS FROM OCTOBER

SYDNEY, March 31 (Bernama-Xinhua) -- Australia's central bank on Tuesday announced that surcharges on credit and debit card payments on major networks will be banned from October, Xinhua reported.

The Reserve Bank of Australia (RBA) said that a review of card payment costs and surcharging concluded that removing surcharges, reducing interchange fees and increasing transparency would be in the public interest and promote competition.

It said that the payment system reforms will take effect from October 1 and will save consumers A$1.6 billion Australian dollars (US$1.1 billion) in surcharge fees per year and businesses A$910 million (US$622.4 million) annually in reduced transaction fees.

The ban on surcharges will apply to debit, prepaid and credit cards on the EFTPOS, Visa and Mastercard networks.

RBA Governor Michele Bullock said that the review, commissioned by the federal government in October 2024, concluded that surcharging no longer works as intended.

"Consumers and businesses find the rules complex and confusing, surcharges are often not well disclosed, and most consumers want surcharging to stop," she said.

In addition to banning surcharges and reducing the cap on interchange fees that businesses pay on card transactions, the RBA said it would begin publishing fees charged by card networks and payment service providers to strengthen competition.

Treasurer Jim Chalmers said in a statement that the changes would take pressure off consumers and businesses and help with the cost of living.

--BERNAMA-XINHUA