A Labor-led parliamentary inquiry into Australia’s payments system wants the Treasurer to order the competition regulator to dig into about $2 billion in credit card fees charged by major schemes such as Visa and Mastercard.
The economics committee’s 146-page report also presses for scrutiny of Apple Pay’s growing digital wallet power by the Australian Competition and Consumer Commission.
Political attention is zeroing in on charges from large American payment firms operating in the local market. Regulators are being asked to test whether that pricing reflects genuine costs or entrenched market power.
Australia’s payments architecture is already shifting after the Reserve Bank of Australia decided in March to outlaw separate card surcharges that many restaurants, pubs and cafes add to cover their own payment costs.
From October 1 those surcharges on credit and debit card transactions are banned and the RBA estimates consumers collectively save around $1.6 billion a year.
Businesses that previously passed on payment costs directly now need to absorb them or adjust menu and product prices. The RBA’s move forces costs back into broader pricing rather than visible add-on fees at the checkout.
Banks have started warning that scrapping surcharges and turning up the heat on card fees could shift the bill onto customers in other ways.
Lenders say they may respond to lower fee revenue with higher credit card interest rates, tighter conditions or scaled-back frequent flyer and rewards programmes.
Financial institutions are trying to protect income streams tied to card usage just as regulators and politicians focus on trimming consumer-facing fees. The tension now centres on who ultimately shoulders the cost of Australia’s card infrastructure, global schemes, banks, merchants or cardholders.
