Payments System Board Annual Report – 2013 List of tables

Chapters

Table: Board Meetings in 2012/13

Table 1: Australian Non-cash Retail Payments

Table 2: Non-cash Retail Payments in Selected Countries

Table 3: Credit Card Interchange Fees

Table 4: Debit Card Interchange Fees

Table 5: Typical Features of Personal Credit Cards, by Type

Table 6: Fraud Losses by Payment Method

Boxes

Table A1: Online Payment Methods

Board Meetings in 2012/13
Attendance by members
No of meetings attended No of meetings eligible to attend
Glenn Stevens (Governor) 4 4
Malcolm Edey (RBA, Deputy Chairman) 4 4
Joseph Gersh(a) 4 4
John Laker (APRA) 4 4
Robert McLean 4 4
Catherine Walter 4 4
Brian Wilson 4 4
(a) Joseph Gersh's term on the Board ended on 14 July 2013
Table 1: Australian Non-cash Retail Payments
2012/13 Average annual
growth
2007/08–2012/13
Per cent of total Average value Growth, per cent Per cent
Number Value $ Number Value Number Value
Debit cards 39.9 1.2   56   14.4 11.1   14.6 12.7
Credit cards 22.9 1.7   139   7.1 3.5   5.8 5.0
Cheques 2.6 8.0   5,718   −13.1 −3.6   −11.9 −7.6
BPAY 4.2 1.8   785   5.3 10.5   8.5 10.7
Direct debits 9.5 38.4   7,473   5.8 −4.5   5.4 3.1
Direct credits 20.9 48.9   4,353   3.6 3.3   5.7 1.7
Total 100.0 100.0   1,859   8.2 −0.2   7.9 1.5

Sources: BPAY; RBA

Table 2: Non-cash Retail Payments in Selected Countries
Number per capita, 2011
Cheques Direct
debits
Direct
credits
Debit
card
Credit
card(a)
Total
Australia 11 31 71(b) 117 74 304
Belgium 1 24 93 93 12 223
Brazil 8 21 43 19 20 111
Canada 25 20 30 120 90 285
China 1 na 1 5(c) na
France 46 54 46 121(c) 267
Germany <1 106 74 29 7 216
Hong Kong na na na 15 55 na
India 1 <1 <1 5 <1 6
Italy 5 10 21 16 10 62
Japan(d) 1 na 11 <1 64 na
Korea 12 30 58 38 130 268
Mexico 4 <1 9 7 5 25
Netherlands 0(e) 80 101 140 7 327
Russia <1 1 19 11 1 32
Saudi Arabia <1 <1 <1 51 1 52
Singapore 15 11 7 43(c) na
South Africa 1 12 11 22(c) 46
Sweden <1 31 88 170 36 325
Switzerland <1 6 95 53 24 178
Turkey na na na 4 29 na
United Kingdom 15 53 57 120 33 278
United States 68 38 25 157 78 366

(a) Includes charge debit
(b) Includes BPAY
(c) Split between debit and credit cards not available
(d) Figures for Japan are for 2009
(e) Cheques have been abolished in the Netherlands since 2001

Sources: ABS; BIS; RBA

Table 3: Credit Card Interchange Fees(a)
Excluding GST; per cent unless otherwise specified, as at 30 June
MasterCard Visa
2012 2013 2012 2013
Electronic 0.35(b) 0.30 0.40 0.30
Standard 0.40(c) 0.30 0.45 0.30
Premium/platinum 1.00(b),(c) 0.95 1.00 0.93
Super premium 1.60(c) 1.59 1.70
Visa Rewards 1.50 or 1.70(d)
Visa Signature 1.80
Consumer elite/high net worth 2.00 1.80 or 2.00(d)
Commercial 1.27(b) 1.00 1.28 0.97 or 1.20(e)
Commercial premium 1.30 or 1.35(f) 1.30 or 1.80(g)
Strategic merchant 0.25 or 0.34 0.23 or 0.29 0.25 to 0.35 0.20 to 0.40
Government/utility 0.30 0.29 0.30 0.30
Charity 0.00 0.00 0.00 0.00
Petrol/service station 0.34 0.29 0.32 0.30
Education 0.30 0.29 0.40 0.30
Supermarket 0.32 0.30
Insurance 0.40 0.30
Transit 0.30 0.30
Recurring payment 0.30 0.29 0.30 0.30
Quick Payment Service 0.40 0.40
Contactless payment 0.35(h) 0.29(i)
Large ticket(j) $20 + 0.20%
SecureCode 0.30
Benchmark 0.50 0.50 0.50 0.50

(a) Fees are paid by the acquirer to the issuer (i.e. from the merchant's financial institution to the cardholder's)
(b) MasterCard had a chip version of this category with the same interchange fee as the non-chip category
(c) May be 5–10 basis points lower, depending on use of MasterCard's SecureCode online authentication system
(d) The higher rate applies if an account is deemed qualified (if spending on that account exceeds a card-specific threshold)
(e) Visa has three types of non-premium commercial rates; the ‘business’ category attracts a fee of 0.97% while the ‘corporate’ and ‘purchasing’ categories attract a fee of 1.20%
(f) 1.30% for the ‘commercial corporate executive’ category and 1.35% for the ‘commercial business executive’ category
(g) 1.30% for the ‘commercial premium’ category and 1.80% for the ‘business signature’ category
(h) MasterCard PayPass transactions equal to or less than $55
(i) MasterCard PayPass transactions equal to or less than $60, excluding commercial cards
(j) Transactions above $10,000 excluding travel/entertainment purchases

Sources: MasterCard website; RBA; Visa website

Table 4: Debit Card Interchange Fees(a)
Excluding GST; cents unless otherwise specified, as at 30 June
MasterCard Visa eftpos
2012 2013 2012 2013 2012 2013
Consumer electronic 6.0 6.0 8.0 8.0 4.5 4.5
Consumer standard 19.0 12.0 0.30% 0.20%
Consumer chip 12.0
Premium/platinum 0.50% 0.50% 0.40% 0.40%
Commercial 1.27% 0.91% 1.00% 0.85%
Commercial chip 1.48%
Strategic merchant 3.6 3.2 or 3.6 4.0 to 60.0 2.0 to 60.0 0.0 to 4.5
Government/utility 7.0 7.0 8.0 6.0
Charity 0.0 0.0 0.0 0.0 0.0 0.0
Petrol/service station 4.0 7.0 6.0 6.0
Education 8.0 6.0
Supermarket 6.0 6.0
Insurance 8.0 6.0
Transit 6.0 6.0
Recurring payment 9.1 10.0 8.0 6.0
Contactless(b) 5.0
Quick Payment Service 4.0 6.0
Micropayment 4.0(c) 0.4(d) 0.0(d) 0.0(d)
Large ticket(e) $10 + 0.1%
SecureCode merchant 8.0
SecureCode full 10.0
Medicare Easyclaim 0.0 0.0
Benchmark 12.0 12.0 12.0 12.0 12.0 12.0

(a) Fees are paid by the acquirer to the issuer, except for transactions involving a cash-out component
(b) MasterCard PayPass transactions equal to or less than $60
(c) Transactions with a value equal to or less than $20
(d) Transactions with a value equal to or less than $15
(e) Transactions above $10,000 excluding travel/entertainment purchases

Sources: ePAL website; MasterCard website; RBA; Visa website

Table 5: Typical Features of Personal Credit Cards, by Type(a),(b)
As at end June 2013
Number
of card
products
Average
annual fee
Average
interest
rate
Average
spending
for $100
voucher
(primary and
companion
card)(c)
Range of
rewards
benefit as
per cent
of spend
(primary and
companion
card)
$ Per cent $ Per cent
No rewards
Standard, Gold and Platinum 31 59 16.9
of which:          
– Low rate 12 79 13.1
– Low fee 11 19 19.3
Rewards
Standard 21 57 19.6 16,500 0.25–1.00
Gold or platinum 25 218 20.3 13,100 0.52–1.15
Super premium 5 462 20.4 9,900 0.74–1.33

(a) Reported averages are calculated as a simple average of relevant products' features; the total sample comprises over 80 credit card products offered by the top 10 credit card issuers and selected major merchants; the top 10 issuers are based on issuing market shares calculated from the Bank's Retail Payments Statistics collection; only products which are available to all new cardholders are included in the sample
(b) For the purposes of this table, a rewards card involves the cardholder having the ability to accumulate a store of points, which may be redeemed for goods or services – other benefits such as instant cashbacks, overseas travel insurance and extended warranties are not included; only rewards programs where a $100 shopping voucher can be redeemed are included in the calculations for rewards spending and benefits, but all rewards cards are included in the calculations for the number, annual fee and interest rate
(c) Average of the sum of the required spend for each applicable card; figures do not take into account the ability to earn additional reward points at certain merchants; the value of spending required to obtain a $100 shopping voucher assumes cardholders with a credit card product containing a companion American Express card spend equal amounts on their MasterCard/Visa card and companion American Express card

Sources: RBA; card issuers' websites

Table 6: Fraud Losses by Payment Method
2011 2012
$ million Dollars
per $1,000
transacted
$ million Dollars
per $1,000
transacted
All instruments 369 0.20 317 0.17
All cards 361 0.62 307 0.50
Scheme debit, credit and charge cards 347 1.16 291 0.91
Australian cards used in Australia and overseas 279 0.96 245 0.79
Foreign cards used in Australia 68 7.46(a) 46 4.87(a)
eftpos and ATM transactions 14 0.05 16 0.05
Cheques 9 0.01 10 0.01

(a) Data for fraud rates for foreign cards used in Australia are estimates only

Sources: APCA; RBA

Table A1: Online Payment Methods
Australians' domestic payments
2012/13
Per cent of total
2012/13
Growth, per cent
Average annual growth,
2010/11–2012/13
Per cent
Number Value Number Value Number Value
Internet banking-initiated credit transfers 47.8 87.8 8.0 9.2 9.8 10.6
BPAY 22.1 10.2 6.9 11.6 8.0 12.4
Credit cards, debit cards, and specialised payments providers 30.2 2.0 20.8 13.2 24.2 16.0
Total online payments 100.0 100.0 11.3 9.5 13.2 10.9

Sources: BPAY; RBA; specialised payments providers