Last week the Australian Taxpayers’ Alliance made a formal submission to the RBA’s Changes to the Bank's Standards for Card Payment Systems.
We argued that:
the RBA have put forward no economic evidence justifying proposals to increase regulation of interchange fees – indeed, all of the economic evidence from around the world supports the case for deregulation;
RBA proposals incorrectly assume that the higher the interchange fee, the higher the efficiency costs – the RBA fails to properly recognise the benefits of interchange fees and the negative effects of interchange fee regulation on consumers; and
RBA proposals explicitly target – and have the effect of banning – premium credit cards tied to reward and frequent flyer programs, severely limiting competition.
You can read our full submission HERE.
A special thanks to all of our supporters that sent a submission into the RBA. The RBA received over 1300 emails from individuals regarding interchange fees telling the RBA “don’t pass the buck” – an amazing effort!
The Australian Taxpayers’ Alliance will continue the fight for consumers in the weeks and months ahead.