Credit Cards Regulatory Framework

Overview

In line with its approach to regulation, since the early 2000s the Bank has introduced a number of reforms which have regulated limited elements of designated credit and debit card systems, with the aim of improving the efficiency of the Australian payments system and promoting competition in the provision of payment services.

In short, the current credit card regulations:

• cap interchange fees on domestic-issued credit cards acquired in Australia at a maximum of 0.30 per cent of transaction value for consumer credit cards and 0.80 per cent of transaction values for commercial credit cards
• remove restrictions that require merchants to accept the debit cards of a scheme if they accept that scheme's credit cards and vice versa (through written Undertakings by Mastercard and Visa)
• reduce barriers to entry through Access Regimes which help increase participation in payment systems
• increase transparency of interchange and scheme fees by requiring the designated credit card systems to publish fee information on a quarterly basis
• cap interchange fees on foreign-issued credit cards acquired in Australia at a maximum of 1.0 per cent of transaction value from 1 April 2027.

The Bank’s Payments System Board has determined that these regulatory actions would together best support the public interest in line with its responsibility to promote the efficiency and competitiveness of the payments system and control risk in the financial system.