RBA seeks tighter card surcharge rules

The Reserve Bank wants credit card surcharge rules to be tightened with charges expressed in percentage terms.

The Reserve Bank of Australia

The Reserve Bank. Source: AAP

The Reserve Bank has signalled tighter rules to clamp down on excessive credit card surcharges.

RBA assistant governor for the financial system Malcolm Edey says the central bank will make recommendations about surcharging on May 20 following a review of credit card payment rules.

He said the RBA's preferred method has charges expressed in percentage terms.

"Among other things, this would rule out the current system of fixed-dollar surcharges in the airline industry, which would appear to result in significant over-recovery of payment costs on low-value fares," Mr Edey said.


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Source: AAP


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