RBA Interchange Decision is Missing the Point
In reference to the famous first line of the communist manifesto "Ein Gespenst geht um in Europa – das Gespenst des Kommunismus.", I venture that a spectre is haunting the payment industry — the spectre of interchange regulations.
The most recent example is a "… Review of Merchant Card Payment Costs and Surcharging (the Review) as part of the RBA’s regular review of its retail payments regulation …" (1)
Unfortunately, as expected, banks and regulators only know one set of tools - regulations, compliance, bureaucracy. And if all they have is a hammer, then every problem looks like a nail to them.