Merchant Card Payment Costs and Surcharging – Consultation Paper –
July 2025 1. Background

The RBA has regulatory powers in respect of payment systems and their participants under the PSRA. Under the Reserve Bank Act 1959, the RBA’s payments system policy is set by the PSB with a mandate to control risk in the financial system, promote the efficiency of the payments system and promote competition in the market for payment services consistent with the overall stability of the financial system. The RBA has used these powers since the early 2000s to introduce standards and access regimes relating to card payments and has periodically reviewed its regulations to ensure they remain fit for purpose.

The RBA commenced a review of merchant payments costs and surcharging (the Review) with the publication of an Issues Paper in October 2024 (RBA 2024b). The Issues Paper sought views from stakeholders on whether there are further regulatory actions the RBA could take to promote competition and efficiency by putting downward pressure on merchant card payment costs, and whether the RBA’s surcharging framework remains fit for purpose. The RBA received 94 written submissions to the Issues Paper from organisations and individuals. The majority were published on the RBA’s website, with the remainder submitted in confidence.¹ The RBA conducted around 40 consultation meetings, including with consumer groups, merchant groups, issuers, acquirers, PSPs, card networks and other regulators.

This Consultation Paper presents the preliminary conclusions of the PSB on the matters discussed in the Issues Paper, drawing on the extensive public consultation process. A summary of the PSB’s preferred policy package and a proposed implementation timeline can be found in Chapter 8: Policy Options for Consultation. Appendix D: Draft Standards presents some draft variations to the RBA’s standards for designated card payment systems that would implement the preliminary conclusions.

Stakeholders are invited to provide written submissions on the preliminary conclusions, proposed implementation timeline and draft standards by 26 August 2025. The RBA will review the written submissions and endeavour to meet with key stakeholders to discuss their submissions in more detail where appropriate. The RBA will draw on this feedback to determine the conclusions that are in the public interest. The RBA intends to publish these conclusions and an implementation timeline for any regulatory action by the end of the year.

Endnotes

To view public submissions, see RBA, ‘Submissions on Review of Retail Payments Regulation’. 1