Surcharging

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RBA Interchange Decision is Missing the Point

Ingo Noka

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.