Beers, pizzas and other everyday items are costing Australians a combined $1bn more a year than they should.
The RBA will consider a regulatory crackdown if banks and payment service providers don’t encourage uptake of the payments overhaul . Picture: NCA NewsWire / Gaye GerardAccording to fresh research by Reserve Bank economists, businesses and their customers are being ripped-off by major banks and payment service providers that charge exorbitant transaction fees for purchases made with cards and mobile wallets .
Least-cost routing refers to the practice where payments default to the least expensive processing network, rather than the pathway set by the bank or payment service provider. MasterCard and Visa transactions cost approximately 0.9 per cent per purchase, while American Express and Diners Club card users are charged a sky-high 1.3 per cent and 1.7 per cent, respectively.
“Once LCR for online and mobile wallet payments is widely available and taken up by merchants, the potential cost savings are likely to be even larger,” the RBA said. Businesses with annual debit payments between $100,000 and $10m receive the most benefit from having LCR enabled, the RBA’s analysis found, with merchants under this threshold also benefiting, but to a lesser extent.
Mobile Wallets Payments Default Sneaky Card Fees Debit Cards Popular Payment Method Research Finds Mobile Wallet Payments Transactions Cost Regulatory Crackdown Payment System Board Least-Cost Routing Payment Service Providers Card Users Payment Service Annual Debit Payments Payments Overhaul Newswire-Business Central Bank Credit Card Visa Inc. American Express And Diners Club
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Weekend lotto draws soar to $2.5 billionAussies will have two chances this weekend to win more than $1bn in two enormous lottery jackpots.
Read more »
Millions of Australians looking for a second job as cost of living crisis continuesThe new data shows the pressure lies heaviest on two groups of Aussies in particular.
Read more »
Undersea ‘hybrid warfare’ threatens security of 1bn, Nato commander warnsUnderwater infrastructure vulnerable to Russian threats, says V Adm Didier Maleterre, after suspected sabotage of gas pipelines
Read more »
‘Horrible’: Fresh warning for Aussies in BaliThe government is warning Aussies travelling to Bali to take precautions against dengue fever, as social media swirls with reports of tourists who have been struck down with the painful infection.
Read more »
Aussies paying more than ever for groceriesMillions of Aussies are struggling to afford their groceries, with the average household now forking out more than $9900 annually at the supermarket checkout.
Read more »
Cummins named world’s best in 12-year first as Aussies dominate prestigious cricket awardsCricket: Travis Head has smashed records on a night of carnage in the IPL with the Australian doing what nobody else has in the competition.
Read more »