Multi-network debit card policy high on agenda
(20 August 2012 – Australia) The Reserve Bank of Australia (RBA)’s Payments System Board (PSB) met to discuss public policy issues relating to multi-network debit cards.
These are cards issued by banks and other financial institutions for ATM usage and with debit functionality from more than one payments network.
The Board discussed issues relating to the cards including a number of concerns regarding scheme rules that require the provision of commercially sensitive data about one network to a competitor network; the imposition of fees by one network on another network's transactions; and disputes over the placement of network brands on cards.
Since then, further issues have arisen between the various networks in the context of contactless debit cards.
These developments have the potential, in the Board's view, to inhibit competition, limit choice to consumers and increase costs.
The PBS is organising for staff to meet again with the parties involved, hoping for a voluntary agreement, however public consultation was authorised in the case of an acceptable outcome not being reached.
The Board discussed issues relating to the cards including a number of concerns regarding scheme rules that require the provision of commercially sensitive data about one network to a competitor network; the imposition of fees by one network on another network's transactions; and disputes over the placement of network brands on cards.
Since then, further issues have arisen between the various networks in the context of contactless debit cards.
These developments have the potential, in the Board's view, to inhibit competition, limit choice to consumers and increase costs.
The PBS is organising for staff to meet again with the parties involved, hoping for a voluntary agreement, however public consultation was authorised in the case of an acceptable outcome not being reached.
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