RBA clarifies Guidance Note for the Varied Surcharging Standards
(24 August 2012 – Australia) The Reserve Bank of Australia (RBA) has released a statement regarding its Guidance Note for the Varied Surcharging Standards coming into effect on 1 January next year.
In June, when the RBA announced the decision to vary the surcharging Standards to allow card scheme rules to limit surcharges to the reasonable cost of card acceptance, it also published a draft Guidance Note on the varied surcharging Standards.
This was in response to indications from a number of interested parties that they would appreciate clarification about the costs that might be included in ‘the reasonable cost of acceptance’.
The feedback that the Bank received on the draft Guidance Note has mostly indicated that the industry sees benefit in a form of guidance that is more prescriptive than that provided in the June draft.
At the Payment System Board’s meeting on 17 August, the view remained that costs of card acceptance for many merchants extend beyond the merchant service fee charged by acquirers.
However, it wishes to ensure that surcharging is not used as a tool to recover costs that are more appropriately viewed as a broader part of doing business.
The Bank also believes that compliance costs and disputes will be reduced by it providing a more detailed view on the costs it considers to be part of the merchant's reasonable cost of card acceptance.
Interested parties have an opportunity to comment on the revised draft by contacting the Head of Payments Policy Department by 21 September.
This was in response to indications from a number of interested parties that they would appreciate clarification about the costs that might be included in ‘the reasonable cost of acceptance’.
The feedback that the Bank received on the draft Guidance Note has mostly indicated that the industry sees benefit in a form of guidance that is more prescriptive than that provided in the June draft.
At the Payment System Board’s meeting on 17 August, the view remained that costs of card acceptance for many merchants extend beyond the merchant service fee charged by acquirers.
However, it wishes to ensure that surcharging is not used as a tool to recover costs that are more appropriately viewed as a broader part of doing business.
The Bank also believes that compliance costs and disputes will be reduced by it providing a more detailed view on the costs it considers to be part of the merchant's reasonable cost of card acceptance.
Interested parties have an opportunity to comment on the revised draft by contacting the Head of Payments Policy Department by 21 September.
Subscribe