JOINT MEDIA RELEASE Date: 10 October 2000 Embargo: For Immediate Release

DEBIT AND CREDIT CARD SCHEMES IN AUSTRALIA
A STUDY OF INTERCHANGE FEES AND ACCESS

The Payments System Board of the Reserve Bank of Australia and the Australian Competition and Consumer Commission today released, for public discussion, a study on an important aspect of the Australian payments system – the networks for ATMs, credit cards and debit cards. The study deals with interchange fees and the conditions of entry to these networks.

Financial institutions agree and pay interchange fees to one another when their customers make credit and debit card transactions or use another institution’s ATMs. Interchange fees are ‘wholesale’ fees which are not seen by consumers, but which have important effects on the fees and other incentives which consumers face when choosing how they make payments.

The study also considered the conditions of entry into the business of providing ATM, credit and debit card services, in particular the rules governing membership of the credit card schemes.

Enquiries:
Reserve Bank of Australia Dr John Laker Assistant Governor    (Financial System) (02) 9551 8510 Dr John Veale Head of Payments Policy (02) 9551 8710 Manager, Information Office (02) 9551 9720	Australian Competition and Consumer Commission Mr Ross Jones Commissioner (02) 6243 1161 Ms Lin Enright Director, Public Relations (02) 6243 1108