RBA card surcharge probe not enough to combat Visa, Mastercard

The mainstream media sincerely swallowed food from the Australian Reserve Bank after its release. Draft trader payments and additional charging review On Tuesday, the Australian consumer writes titles that claim that he will save $ 1.2 billion in collectively due to a ban on debt and credit card additional fees.

In Tandem, RBA reduced the exchange fee limits for both the bank and credit cards, while the prohibition of additional fees at the point of sale. The new rules, which will enter into force until the middle of 2026, decrease from 0.5% to 0.3% of the border in debit card exchange fees, while the credit card limit will decrease from 0.8% to 0.5%. Junction fees are the transaction fees paid by an enterprise to the Card Owner Bank (Exporting Bank) by the selected payment processor (purchasing bank), which is later transferred to the enterprise as part of the total card processing costs.

Changes also contain a much more blurred requirement for more transparency in commercial fees, and providers are forced to explain the real cost of card acceptance to business owners.

While the RBA believes that reforms simplify wages, sharpen competition and reduce the underlying costs – it increases productivity by reducing inefficiency and saving consumers and businesses – it argues that savings can enter the cost base of the traders or to leave consumer prices unchanged.

So will you save fees in the safe? Not so fast

Card payments are extremely complex system (and deliberately) dominated by powerful companies on both land and land – primarily Visa, MasterCard (Card schemes) and Banks (Card Exporters). The larger the bank, the higher the market power. Smartpay, Tyro, Zeller and Zero Pay and Paynuts such as PSP (Payment Service Provider) products labeling Smartpay, Tyro, Zeller, such as smaller local fintechs, such as US Giants Square, Strepe and Adyen, such as throw to this mixture payment service providers (payments).

When a consumer purchases a product containing cards in Australia, there are several layers of wage. The seller pays a seller service fee (usually 1-1.5% of the transaction) to purchasing banks or PSP. This fee is divided: the exporting bank receives a change fee (0.5% for the bank, 0.8% for credit right now). Visa or MasterCard receives a plan fee (about 0.1-0.2%, but largely opaque). However, in addition to visible plan fees, Visa and Mastercard generate extra income through less transparent fees with the names that are effectively fabricated, such as cross -border fees, network assessment fees, processing and compliance fees, foreign transformation margins and optional “premium” network services. These hidden costs are packaged to banks, but ultimately transferred to merchants and consumers in response – keeping the actual cost of card payments higher than the title rates.

Mark Fletcher, the owner of the journalist, said, “Small business retailers, if all parties are as important as what the politicians say to us, as something now appear, small business retailers are about to be fed with a shit sandwich.” He said. Blog post.

Fletcher hit RBA because it ignores the real costs of small businesses and did not force the least costly guidance (LCR)-a move that can save up to 20% in bank trading costs. LCR means that payments are made over the cheapest network. LCR will carry them to EFTPOS from more expensive card scheme networks.

In addition, it is necessary to specify the large gap in the exchange fees between large and small retailer – large retailers Coles and Woolworths are thought to pay only 0.1% compared to 2% for some businesses. Any movement to prohibit dragging these basic issues without correcting it shifts costs to small enterprises with sheaths.

Australian Small Business Organizations Council (Cosboa) warns Prohibition of additional wages without considering wider ecosystem does not provide promised savings. He argues that traders – especially smaller retailers – absorb the remaining card processing costs or transfer them at higher prices and bury wages into the cost of goods.

Australia’s small business sector faces a gloomy appearance because it is combined with cost pressure, falling confidence and weak growth. Accordingly Australian Statistics OfficeDespite a 1.4% increase in wages, gross operating profits fell by 0.5% in March quarter of 2025, and the increase in income on margins left behind. RBA’s itself recorded this jobs In recent years, “sharply rose”.

Card schemes look great on any real reform

RBA seems to be looking at both monster power schemes Visa and Mastercard as well as by state -protected banks of Australia. Visa and MasterCard have combined 60 billion dollars of revenues last year, they see about growth 10% this yearand against a 20% norms, respectively, 67% and 57% have large operating margins.

While playing RBA (half arsed) growing, EU and England are now investigating Visa and Mastercard’s plan fees. EU competition officials have launched a detailed investigation into VISA and Mastercard’s plan and processing fees. European Commission since the end of 2024 Repeated surveys To ask the retailers and payment companies – whether the fee changes are transparent and which fees are compulsory – covering the activity between 2016 and 2024. Retail groups such as Eurocommerce, Amazon, IKEA and Aldi collective actionThere was no corresponding service improvements, increasing 34% of plan fees from 2018-22 (about +7.6% per year).

UK Payment System Editor March 2025 Review As a result, Visa and Mastercard suffer from inadequate competition pressure, which allows them to really increase plan and transaction fees over 25% (2017-23). The examination called for more surveillance by criticizing wage complexity and lack of transparency.

Critics say RBA’s “draft” decision seems to be designed to satisfy the Treasurer Jim Chalmers. threatened to move If RBA did not do it, in debt fees.

Some observers believe that there are more games here and that RBA cannot force any more in terms of the case. Visa and Mastercard have routinely challenged the world -wide regulators to protect wage structures and market dominance. They launched lawsuits and objections against antitröst actions and wage limits in the EU, Britain and the United States, and often delayed reforms through court wars. In Australia, Mastercard is currently fighting the competitive guard after the ACCC is claimed. anti -competition behavior The competitor debit card network depends on the efforts to suppress competition from EFTPOS. The situation launched in 2022 will not be heard by 2026.

Others, Trump’s “first” agenda, Visa and Mastercard’ın largest US companies can attempt to attempt to attempt to attempt to cut more card plan revenues. Australia’s movements to reduce plan fees may invite trade threats or legal maneuvers through US trade officials.

So the question is that if the Chalmers is serious about productivity reforms, will RBA be able to enter and legislated? Or is the combination of Visa, Mastercard and Donald Trump too hot to deal with it?