The RBA is undertaking a significant Review into Retail Payments Regulation, aimed at evaluating the costs that merchants endure when accepting card payments and the existing surcharging framework.
According to Finextra, in an effort to gather comprehensive insights, the RBA has released an issues paper and is actively seeking feedback from stakeholders. This initiative is a critical step towards potential regulatory amendments that could help reduce the financial burden on merchants and, consequently, on consumers.
Australians rely heavily on card payments for their convenience and security, especially in a climate where the cost of living is a growing concern. The review is timely, considering the years that have passed since the surcharging rules were first implemented. By revisiting these regulations, the RBA aims to explore possibilities for reducing card payment costs for merchants, which could also lead to a decrease in surcharging practices, providing direct financial relief to consumers.
The feedback collected from this consultation, open until 3 December 2024, will be vital in shaping the RBA’s approach to future reforms. This process underscores the RBA’s commitment to maintaining a safe and efficient payments system while adjusting to current economic demands and technological advancements.
Stakeholders are encouraged to submit their written responses to the issues raised in the paper, which will inform the next phase of detailed assessments and discussions on potential reforms. Should the Payments System Board find it in the public interest, further consultations on proposed regulatory actions will be conducted before any final decisions are reached.
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