(29 September 2009 – Australia) The Payments System Board has proposed changes to the regulation of interchange fees in the EFTPOS system to ensure that competition between EFTPOS and scheme debit is conducted on a level playing field.The Board is considering applying the current regulatory framework for scheme debit – a cap on weighted-average interchange fees of 12 cents per transaction – to EFTPOS interchange fees.
The proposed changes come after many years of concern from the board about the nature of competition between EFTPOS and scheme debit.
The reason for standardising the treatment in this way is that such a regime is more flexible than that currently applying to EFTPOS, in which interchange fees on purchase transactions are restricted to be between 4 and 5 cents paid to the acquirer.
Imposing a cap of 12 cents on EFTPOS interchange fees would provide more freedom for the EFTPOS scheme to set interchange fees – either multilaterally or bilaterally – than is currently the case.
The flexibility for the EFTPOS system embodied in the above approach raises the issue of whether negotiation over interchange fees could become a barrier to access to the system, the board indicated.
The board is requesting submissions to the proposed changes, with a closing date of 23rd October, 2009.