The Reserve Bank of Australia (RBA) has hinted tighter rules to clamp down excessive credit card surcharges.
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RBA assistant governor (financial system) Malcolm Edey said that the central bank will make recommendations regarding collection of surcharges on 20 May after completion a review of credit card payment rules.
"Among other things, this would rule out the current system of fixed-dollar surcharges in the airline industry, which would appear to result in significant over-recovery of payment costs on low-value fares," Edey added.
Under the bank’s preferred approach, the acquirers would have to provide merchants with regular statements of the cost of acceptance for each payment method.
"The cost of acceptance would have to be expressed in percentage terms unless the acquirer fees for that payment method were fixed across all transaction values. As a result, surcharging would normally also have to be percentage based," Edey added.
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By GlobalData
