Who regulates interchange fees?

A:

Interchange fees are currently regulated by the Reserve Bank of Australia. In an expert economist report RMIT University Professors Sinclair Davidson and Jason Potts found that “the RBA engaged in an extensive regulatory intervention based on poor theory and no empirical evidence.” In a separate report they present evidence supporting the argument that the RBA should not be involved in regulating the payments system.

Concerns have been raised that the RBA’s Payment Board meetings are secretive and non-minuted, meaning that it is not transparent and cannot properly be held accountable for its decisions.

There is currently an inquiry underway looking into matters relating to credit cards, which is being conducted by a standing committee of the Australian Senate.