Credit card interest rates and other features are only partly driven by factors such as the Reserve Bank of Australia’s (RBA) cash rate. Other factors, such as interchange fees (the fee paid by a merchant to the bank of a customer when the customer uses a payment card to pay for goods or services) are extremely important. These fees are the subject of increasingly stringent regulation that is restricting the development of the credit card market and harming consumer welfare.
Submission of the Australian Taxpayers Alliance and the IAEP to the Australian Senate Inquiry into Credit Card Interest Rates
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