26 November 2014

44975

Retired Member

699 | posts 2,194,480 | views 833 | comments

SEPA and European Payments

The Single Euro Payments Area, the Payments Services Directive, the Eurosystem, TARGET2, STEP2, the Euro and related matters.

Interchange regulations trigger credit card surcharges

31 August 2008  |  5422 views  |  0

If you want to see the real-world impact of interchange regulations, the best place to look is obviously Australia. This is a country where the most sweeping changes to the interchange model have taken place, a country seen by regulators everywhere as something of a model to learn from.

If you can’t go to Australia to learn first-hand (maybe you've been trying to convince your boss to let you go, but he hasn't said yes yet), another way would be to look at the work of Australian research firm, East & Partners. They recently released a report, titled Australian Merchant Acquiring & Cards Markets, which shows how bad surcharging on credit card transactions has become. (See the report brochure here and the firm's press release here.)

“Surcharging is most common at the top end of town where up to 26 percent of merchants have already introduced surcharges and a further 38.7 percent are planning to do so in the coming months. In theory, the rise in surcharging should produce a shift from credit cards to other forms of payment which are relatively less costly.”

I’m looking forward to seeing the firm’s next report, which I imagine would begin to show whether or not this shift actually happens in a meaningful way.

"Dang it, Aneace!" you say with understandable anger. "Now I definitely can't convince my boss to let me go to Australia!"

TagsCardsPayments

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Retired

7-day account switch: customer empowerment or indifference

18 June 2014  |  1896 views  |  1  |  Recommends 0 TagsRisk & regulationRetail banking

On Reinventing Money.

03 June 2014  |  1279 views  |  0  |  Recommends 0 TagsPaymentsInnovation

Operational Lessons for New Boutique Asset Managers

27 May 2014  |  656 views  |  0  |  Recommends 0 TagsRisk & regulation

Trading System Failures Cannot Be Our Norm

21 May 2014  |  1511 views  |  0  |  Recommends 0 TagsRisk & regulationInnovation

Around the Clock Tweeting

15 May 2014  |  1982 views  |  0  |  Recommends 0 TagsMobile & onlineRetail banking
name

Retired Member

job title

company name

member since

2014

location

Summary profile See full profile »

Retired's expertise

What Retired reads
Retired writes about

Who is commenting on Retired's posts

Rasvan Stanescu
Sian Bentley
Tony Wenzel
Jorge Yui
Ketharaman Swaminathan
Mark Pavan
Vishal Chaturvedi
Matt Scott
Geoffrey Barraclough
Thad Peterson
Marinka Ryan
Alexander Peschkoff