The current regulatory framework for debit card interchange fees and access arrangements has been in place since 2006, and covers both the EFTPOS and international debit card schemes. Since that time, there have been some developments in relation to the EFTPOS system, including:
- more widespread adoption of multilateral fee arrangements (as opposed to bilateral agreements) by participants within the system; and
- the establishment of a central body, eftpos Payments Australia Limited (ePAL), to administer multilateral fee and access arrangements, and promote the EFTPOS system.
In light of these developments the Payments System Board of the Reserve Bank of Australia (the Board) reviewed the current regulatory framework to ensure it remains appropriate. Specifically, the Board considered whether the current fee arrangements allow EFTPOS to compete effectively with other payment systems, including the international debit card schemes; and whether the access arrangements were still required. On 29 November 2012, the Board announced the outcomes of its review. The Board has decided to harmonise the regulation of bilateral EFTPOS interchange fees with the multilateral fees, and those of the international debit schemes, placing the EFTPOS system on a more consistent regulatory footing. The Board also made an in-principle decision to revoke the existing Access Regime for the EFTPOS system if satisfactory access arrangements are put in place by ePAL. A Regulation Impact Statement was prepared by the Reserve Bank of Australia and assessed as adequate by the Office of Best Practice Regulation.
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