List of tables | Payments System Board Annual Report – 2014

Payments System Board Annual Report – 2014 List of tables

Chapters

Table: Board Meetings in 2013/14 Attendance by Members

Table 1: Australian Non-cash Retail Payments

Table 2: Online Payment Methods

Table 3: Non-cash Retail Payments in Selected CPSS Countries

Table 4: Interchange Fees

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

Table 6: Fraud Losses by Transaction Type

Table 7: Organisations Represented on Australian Payments Council

Table 8: Payments in Australia

Boxes

Table A1: Use of Payment Methods over Time

Table A2: Use of Cash and Card Payments for Different Types of Purchases

Board Meetings in 2013/14 Attendance by Members
Number of meetings
	Attended	Eligible to attend
Glenn Stevens (Governor)	4	4
Malcolm Edey (RBA)	4	4
Gina Cass-Gottlieb	4	4
Paul Costello	4	4
John Laker (APRA)^(a)	4	4
Robert McLean	4	4
Catherine Walter	4	4
Brian Wilson	4	4
(a) John Laker's term on the Board ended on 30 June 2014. He was succeeded by Wayne Byres, who was appointed as the APRA representative on 9 July 2014 in terms of section 25B(2) of the Reserve Bank Act.

Table 1: Australian Non-cash Retail Payments
	2013/14					Average annual growth 2008/09–2013/14
	Per cent of total		Average value	Growth, per cent		Per cent
	Number	Value	$	Number	Value	Number	Value
Debit cards	40.8	1.2	55	11.9	9.8	14.0	11.2
Credit cards	22.7	1.7	136	8.3	6.4	6.7	5.3
Cheques	2.1	7.8	6,806	−13.5	2.9	−12.4	−3.9
BPAY	4.1	1.8	824	5.5	10.6	7.2	10.3
Direct debits	9.8	37.6	6,928	13.3	4.3	6.8	3.7
Direct credits	20.5	49.9	4,417	6.7	7.4	6.0	2.9
Total	100.0	100.0	1,817	9.2	5.9	8.3	2.8
Sources: BPAY; RBA

Table 2: Online Payment Methods
Australians' domestic payments
	2013/14 Per cent of total		2013/14 Growth, per cent		Average annual growth, 2010/11–2013/14 Per cent
	Number	Value	Number	Value	Number	Value
Internet banking-initiated credit transfers	47.6	88.4	10.2	16.8	10.4	13.0
BPAY	21.0	9.6	6.4	11.0	7.5	11.9
Credit cards, debit cards, and specialised payments providers	31.4	2.0	16.5	13.9	21.6	15.3
Total online payments	100.0	100.0	11.3	16.2	12.8	13.0
Sources: BPAY; RBA; specialised payments providers

Table 3: Non-cash Retail Payments in Selected CPSS Countries
Number per capita, 2012
	Cheques	Direct debits	Direct credits	Debit card	Credit card^(a)	Total^(b)
United States	58	42	28	165	84	377
Sweden	<1	31	90	190	40	351
Netherlands	0^(c)	82	101	151	7	341
Australia	10	32	72^(d)	132	78	324
Korea	9	33	63	50	147	302
United Kingdom	13	54	58	129	35	289
Canada	22	20	28	126	90	286
France	43	54	47	130^(e)		274
Belgium	<1	26	85	98	13	222
Germany	<1	108	75	31	7	221
Switzerland	<1	6	97	57	27	187
Brazil	7	22	46	20	24	119
Italy	5	10	21	18	10	64
Saudi Arabia	<1	<1	<1	54	2	56
South Africa	1	14	13	26^(e)		54
Russia	<1	1	19	18	2	40
Mexico	3	1	9	8	5	26
India	1	<1	<1	5	<1	6
(a) Includes charge debit cards (b) Excludes e-money (c) Cheques were abolished in the Netherlands in 2001 (d) Includes BPAY (e) Split between debit and credit cards not available Sources: ABS; BIS; RBA

Table 4: Interchange Fees^(a)
Excluding GST; as at 30 June 2014
	Credit card Per cent		Debit card Cents unless otherwise specified
	MasterCard	Visa	MasterCard	Visa	eftpos
Consumer electronic	0.30	0.30	9.1^(b)	8.0	4.5
Consumer standard	0.30	0.30	15.8^(b)	0.26%^(b)	–
Consumer premium/platinum	0.95	0.93	0.91%^(b)	0.50%^(b)	–
Super premium	1.59	–	–	–	–
Visa Rewards	–	1.50 or 1.70^(c)	–	–	–
Visa Signature	–	1.80	–	–	–
Consumer elite/high net worth	2.00	1.80 or 2.00^(c)	–	–	–
Commercial	1.00	0.97 or 1.20^(d)	0.91%	0.85%	–
Commercial premium	1.30 or 1.35^(e)	1.30 or 1.80^(f)	–	–	–
Strategic merchant	0.23 or 0.29	0.20 to 0.40	3.2 or 3.6	2.0 to 60.0	0.0 to 4.5
Government/utility	0.29	0.30	7.0	6.0	–
Charity	0.00	0.00	0.0	0.0	0.0
Petrol/service station	0.29	0.30	7.0	6.0	–
Education	0.29	0.30	–	6.0	–
Supermarket	–	0.30	–	6.0	–
Insurance	–	0.30	–	6.0	–
Transit	–	0.30	–	6.0	–
Recurring payment	0.29	0.30	10.0	6.0	–
Contactless^(g)	0.29	–	5.0	–	–
Quick Payment Service	0.40	–	6.0	–	–
Micropayment^(h)	–	–	0.4	–	0.0
SecureCode merchant	0.30	–	8.0	–	–
SecureCode full	0.30	–	10.0	–	–
Medicare Easyclaim	–	–	–	–	0.0
Benchmark	0.50	0.50	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) The rate applying to this category increased in November 2013 (c) The higher rate applies if an account is deemed qualified (if spending on that account exceeds a card-specific threshold) (d) 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% (e) 1.30% for the ‘commercial corporate executive’ category and 1.35% for the ‘commercial business executive’ category (f) 1.30% for the ‘commercial premium’ category and 1.80% for the ‘business signature’ category (g) MasterCard PayPass transactions equal to or less than $60, excluding commercial credit cards (h) Transactions with a value equal to or less than $15 Sources: ePAL website; MasterCard website; RBA; Visa website

Table 5: Typical Features of Personal Credit Cards, by Type^(a), ^(b)
As at end June 2014
No rewards
	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)^(c)
		$	Per cent	$	Per cent
Standard, gold and platinum	31	52	16.6	–	–
of which:
Low rate	13	79	12.8	–	–
Low fee	12	12	19.2	–	–
Rewards
Standard or gold	24	85	19.9	17,900	0.25–1.00
Platinum	24	206	20.2	15,900	0.31–1.13
Super premium	8	424	20.0	11,100	0.60–1.25
(a) Reported averages are calculated as a simple average of relevant products' features; the total sample comprises around 90 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 Transaction Type
$ million
	2012	2013
All instruments	317	362
Cheques	10	7
All cards	307	355
eftpos and ATM transactions	16	18
Scheme debit, credit and charge cards	291	336
Australian cards used in Australia	111	128
Card present	38	39
Card not present	73	89
Australian cards used overseas	134	157
Card present	24	27
Card not present	110	130
Foreign cards used in Australia	46	51
Card present	17	17
Card not present	30	34
Source: APCA

Table 7: Organisations Represented on Australian Payments Council
Organisation	Appointment Method for Member
APCA	APCA CEO
Reserve Bank of Australia	appointed by Reserve Bank from an operational payments area
ANZ	appointed by institution
Commonwealth Bank	appointed by institution
National Australia Bank	appointed by institution
Westpac	appointed by institution
Cuscal	elected from ‘other financial institutions’ group
Suncorp	elected from ‘other financial institutions’ group
eftpos Payments Australia	appointed by the Reserve Bank from ‘payment schemes’ group
Visa	appointed by the Reserve Bank from ‘payment schemes’ group
Woolworths	appointed by the Reserve Bank from ‘retail acquirers’ group
First Data	appointed by the Reserve Bank from ‘other’ group
PayPal	appointed by the Reserve Bank from ‘other’ group

Table 8: Payments in Australia
2013/14, daily averages^(a)
Domestic
	Number^(b)	Value^(b)	Growth since 2012/13	Interbank settlement value in RITS
	'000s	$ billion	Per cent	$ billion
RITS	42	162.7	3.1	162.7
SWIFT payments (HVCS)	38.7	100.5	3.5	100.5
Debt securities (Austraclear)^(c)	3.1	50.3	3.8	50.3
RITS cash transfers	0.2	11.9	−3.6	11.9
Retail payment systems	34,816.3	62.9	5.5	2.9^(d)
Equity settlements	718.8	4.0^(e)	−3.9	0.5
International
CLS	56.8	246.2	−2.2	2.2
(a) Business days (b) Includes payments between customers of the same financial institution (c) Excludes intraday and open RBA repurchase agreements, and multilaterally netted interbank settlements arising from the retail payment systems and the equity market (d) Average prior to (post) the implementation same-day settlement of direct entry payments was $1.9 billion ($3.6 billion) (e) Gross value of equity trades Sources: ASX; CLS; RBA

Table A1: Use of Payment Methods over Time
Per cent of all payments
Payment method	Number of payments			Value of payments^(a)
Payment method	2007	2010	2013	2007	2010	2013
Cash	69	62	47	38	29	18
Cards	26	31	43	43	43	53
Debit cards	15	22	24	21	27	22
Credit and charge cards	11	9	19	23	16	31
BPAY	2	3	3	10	10	11
PayPal^(b)	na	1	3	na	1	2
Internet or phone banking^(b)	na	2	2	na	12	10
Cheque	1	1	0	6	3	2
Other	1	1	2	3	3	5
Notes: Excludes entries with missing payment method information (a) Payments of $9,999 or more are excluded for comparability across surveys because payment value was truncated at $9,999 in the 2007 survey; further, the small number of such payments that occur during any week generates significant volatility in shares over time (b) Not collected in 2007 Sources: RBA surveys, conducted by Colmar Brunton and Roy Morgan Research

Table A2: Use of Cash and Card Payments for Different Types of Purchases
Per cent of number of payments within each category
Broad merchant categories	Cash	Card	Cash	Card	Cash	Card
Broad merchant categories	2007		2010		2013
Food retailers	90	10	85	14	72	27
Services	51	27	56	33	50	38
Other	68	17	61	18	46	28
Holiday/leisure	78	19	67	25	43	40
Petrol/transport	60	36	53	43	41	54
Goods retailers	62	35	56	40	40	48
Supermarket	60	39	54	46	38	59
Bills/medical	44	33	25	32	18	42
Notes: Shares for each group do not add to 100 as the shares of other payment types such as personal cheques or PayPal are not shown Sources: RBA surveys, conducted by Colmar Brunton and Roy Morgan Research