Payments System Board Consultation on Replacing the eftpos Designation March 2012

The Reserve Bank of Australia announced in September 2011 that it would undertake a review of the regulatory framework for the eftpos payment system in light of developments in that system over recent years. The Bank is now launching the first public phase of the review – a consultation on the possible form of a new designation for the eftpos system. A consultation on other elements of the regulatory framework for the eftpos system will follow later in the year.

The need for the review arises from the significant changes that occurred in the eftpos system since it was first designated in 2004, and an interchange fees Standard and Access Regime imposed in 2006. Most notable has been the establishment of a governing scheme, eftpos Payments Australia Limited (ePAL), in 2009 and ePAL's recent decision to introduce a common multilateral interchange fee schedule for the eftpos system. In light of these developments, the Bank intends to conduct a public consultation on whether changes to the existing Standard and Access Regime are appropriate. Before it does so, the Bank must first determine the appropriate form of designation for the system, given that the existing designation does not reflect the current structure of the system. It is seeking views from interested parties on possible approaches to designation of the eftpos system.