Media Release Reform of Credit Card Schemes in Australia

On 27 August 2002, the Reserve Bank of Australia released its final reforms to credit card schemes in Australia. The reforms will promote greater transparency, efficiency and competition in the Australian payments system, to the benefit of the Australian community as a whole. The reforms were developed after consideration of a large number of submissions and extensive consultation with a wide range of interested parties, over a three-year period.

The reforms were introduced under the Payment Systems (Regulation) Act 1998, which sets out the Reserve Bank's powers in the payments system area granted to it as part of the Government's response to the Financial System Inquiry (the Wallis Committee). In developing the reforms, the Reserve Bank has acted consistently with its obligations and powers under this Act and at law.

Visa International has today announced that it is mounting a legal challenge in the Federal Court to have the reforms overturned.

The Reserve Bank is disappointed that Visa International has chosen to take this action and will vigorously defend the reforms.