17 August 2017
Find out more

Commonwealth challenges Australian credit card reform

19 March 2002  |  1893 views  |  0 Commonwealth challenges Australian credit card reform

The Commonwealth Bank says that proposed reform of credit card schemes by the Federal Reserve Bank of Australia will reduce incentives for the banking industry to invest in the national payments infrastructure.

The RBA proposals, unveiled on 14 December, 2001, challenge the basic tenets of the international payment card networks in the setting of interchange fees, surcharging, and who can join the system.

Nick Kennett, the Commonwealth's head of retail customer services says: "The bank believes that the proposed reforms will make the credit card business less efficient for all parties and will result in reduced competition, reduced benefits and higher fees for credit card customers, as well as reduced incentives for the bank to invest in payments infrastructure".

In its formal submission to the RBA, the Commonwealth argues that the proposed standard for interchange fees is flawed, and that the introduction of merchant surcharging will put credit cards at a competitive disadvantage to American Express and Diners' Club, which were excluded from the RBA review.

"The Commonwealth Bank wants to ensure that Australians continue to enjoy a competitive and robust credit card payments market, providing appropriate benefits to all participants. The bank looks forward to further consultation with the Reserve Bank to ensure that this is achieved", adds Kennett.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

ANZ to open Verified by Visa shopping mall

ANZ to open Verified by Visa shopping mall

06 March 2002  |  4214 views  |  0 comments
St.George Bank rolls out smart card reward scheme

St.George Bank rolls out smart card reward scheme

26 February 2002  |  3067 views  |  0 comments
Brief: Ubitrade wins CBA derivatives contract

Brief: Ubitrade wins CBA derivatives contract

18 February 2002  |  1877 views  |  0 comments
MasterCard attacks Australian credit card reform

MasterCard attacks Australian credit card reform

18 February 2002  |  3571 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.abe-eba.eudownload the paper nowvisit www.niceactimize.com

Top topics

Most viewed Most shared
Coinbase raises $100mCoinbase raises $100m
10218 views comments | 14 tweets | 14 linkedin
DBS Bank launches online car selling marketplaceDBS Bank launches online car selling marke...
9560 views comments | 13 tweets | 11 linkedin
China preps central clearing house for mobile payments providersChina preps central clearing house for mob...
9379 views comments | 8 tweets | 15 linkedin
HSBC automates documentary trade processing with IBMHSBC automates documentary trade processin...
8397 views comments | 6 tweets | 21 linkedin
Monzo appoints Curve co-founder Foster-Carter COOMonzo appoints Curve co-founder Foster-Car...
7878 views comments | 1 tweets | 2 linkedin

Featured job

Competitive base and bonus, plus benefits
London, UK

Find your next job