Cashcard Makes Submission to RBA

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.