NAB passes savings on to merchants
(13 November 2012 – Australia) As part of the Reserve Bank of Australia (RBA)’s regulation of card payments, National Australia Bank (NAB) has calculated that its customers will save more than A$30 million in merchant interchange fees.
The saving for many of NAB’s 130,000 plus merchant customers follows adjustments by Visa and MasterCard schemes as part of the RBA’s incoming regulations.
NAB released a statement last week saying it will pass on the additional savings associated with the interchange fee adjustments for the majority of its Small and Medium Enterprises (SME) customers.
The regulation states that the interchange fees for Visa and MasterCard Australian issued credit and debits cards must be reset every three years to remain under the central bank’s benchmark interchange rates.
"As Australia’s leading business bank we’re committed to being open, honest and transparent in our billing approaches, and having a fair exchange of value with our customers.
"In the lead up to the Christmas, NAB understands that business owners are looking for ways to better manage their costs. NAB’s billing structure enables merchants to have greater transparency over the cost of processing different cards, enabling them to make informed decisions about which cards and types of transactions can cost them less," said executive general manager, Working Capital Services, David Gall said.
The average saving per merchant account is over $300 per year.
NAB also introduced everyday settlements for the majority of merchants, meaning businesses can now access funds processed on the weekend.
NAB released a statement last week saying it will pass on the additional savings associated with the interchange fee adjustments for the majority of its Small and Medium Enterprises (SME) customers.
The regulation states that the interchange fees for Visa and MasterCard Australian issued credit and debits cards must be reset every three years to remain under the central bank’s benchmark interchange rates.
"As Australia’s leading business bank we’re committed to being open, honest and transparent in our billing approaches, and having a fair exchange of value with our customers.
"In the lead up to the Christmas, NAB understands that business owners are looking for ways to better manage their costs. NAB’s billing structure enables merchants to have greater transparency over the cost of processing different cards, enabling them to make informed decisions about which cards and types of transactions can cost them less," said executive general manager, Working Capital Services, David Gall said.
The average saving per merchant account is over $300 per year.
NAB also introduced everyday settlements for the majority of merchants, meaning businesses can now access funds processed on the weekend.
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