Cashcard Makes Submission to RBA

Sunday 11 July 2004 18:12 CET | News

Cashcard Australia has submitted its recommendations to the Reserve Bank of Australia on the designation of the ATM payments system.

Cashcard is supportive of the replacement of the hidden ATM interchange system and current foreign ATM charges, with a convenience fee system using the direct charging model developed by the ATM Industry Steering Group (AISG). This model proposes setting inter-bank interchange fees to zero, allows ATM operators to charge a convenience fee and card issuers to charge a small transaction fee. It also makes provision for combined networks of smaller financial institutions to continue to operate convenience “fee free” networks supported by intra-network interchange fees. Cashcard believes additional pricing guidelines will be beneficial to a smooth transition to the new environment, and are in the best interests of Australian consumers. The company today outlined its support for designation of the ATM payments system based on: - Implementation of an ATM direct charging regime incorporating a zero ATM interchange fee; - Provision for combined networks to offer a convenience fee free service; - Foreign ATM issuer fee caps per transaction; - ATM operator convenience fee caps per transaction; - Implementation timeframe of 18 months; and - Designation within 3 months.

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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce