Global payment processors Mastercard and Visa have threatened to stop refunds for fraud victims in a pre-emptive move against the Reserve Bank of Australia, which is considering fee restrictions on these credit card companies.
It comes days after the Federal Government announced they would impose a total ban on debit card surcharges starting in 2026.
Australian shoppers are collectively paying around $1.5 billion every year for debit and credit card surcharges, according to industry estimates.
READ MORE: Man charged over 'sadistic sextortion offences' after allegedly grooming girl in NSW
Mastercard Australian division president Richard Wormald told The Australian Financial Review that protections offered by the processors to customers were "not free".
He said those protections included refunds for customers who did not receive goods purchased with the cards, as well as fraud claims.
"There is no such thing as a free lunch," he said.
"You can't only look at one side of the equation because there are unintended consequences on the other side."
READ MORE: Mysterious ball-shaped debris identified after two Sydney beaches closed
Visa's country manager Alan Machet claimed further regulation could restrict benefits to its customers.
"Further regulation could restrict the ability to deliver these protections and benefits to consumers," he said.
"Just because the flow of digital payments is invisible does not mean it is free to operate, innovate or future-proof."
The RBA will continue to review merchant card payment costs and surcharging.
"Consumers shouldn't be punished for using cards or digital payments, and at the same time, small businesses shouldn't have to pay hefty fees just to get paid themselves," Treasurer Jim Chalmers previously told the Australian Financial Review.
The federal government will also provide $2.1 million in extra funding to the Australian Competition and Consumer Commission to crack down on excessive surcharge fees.
FOLLOW US ON WHATSAPP HERE: Stay across all the latest in breaking news, celebrity and sport via our WhatsApp channel. No comments, no algorithm and nobody can see your private details.
from 9News https://ift.tt/QdYFKsZ
via IFTTT
Comments
Post a Comment