Descriptions of Graphs for Speech by I.J. Macfarlane, Governor

Graph 1: US Credit Card Merchant Service Fees and Interchange Fees

The graph shows the MasterCard and Visa credit card interchange fees applicable to a $100 transaction in the US for the period 1994–2004. It also shows the level of the average credit card merchant service fee applicable to a $100 transaction in the US for the same period.

The interchange fees rose from under $1.3 to $1.65 over the period. The average merchant service fee rose from under $2 to just over $2.2.

[End description.]

Back to graph

Graph 2: US Interchange Fees on Debit Cards and Market Share

The graph contains two panels. One shows the interchange fees for scheme-based and PIN-based debit cards applicable to a $100 transaction in the US for the period 1994–2004. The other shows the market share of scheme-based debit cards over the same period.

The interchange fee is much higher for the scheme-based cards than the PIN-based ones. As a result, issuing banks have been switching to the scheme-based cards and their share of the market has increased from 45 per cent to 60 per cent.

[End description.]

Back to graph

Graph 3: Australian Interchange Fees and Card Payments per Capita

The graph contains two panels. One shows the interchange fees for credit and EFTPOS cards applicable to a $100 transaction in Australia for the period 1995–2004. The other shows the number of credit and EFTPOS card transactions per capita for the same period.

Until the Reserve Bank's recent reforms, issuers received $1.15 more for each $100 credit card transaction. This meant credit card usage was strongly promoted, resulting in a big shift towards them, with transaction numbers growing at 20 to 30 per cent for around five years. EFTPOS growth fell to less than 10 per cent per year.

[End description.]

Back to graph