Review of Card Payments Regulation March 2015

Following consideration by the Payments System Board at its February 2015 meeting, the Reserve Bank released an Issues Paper to commence a review of the regulatory framework for card payments. The review followed a recommendation in the Final Report of the Financial System Inquiry (FSI) that the Board consider a range of measures related to card payments regulation, particularly in relation to interchange fees and surcharging. The Issues Paper, Review of Card Payments Regulation, seeks industry and stakeholder views on the regulation of card payments and discusses a number of possible options. The Board recognises that a review of regulation involves complex issues, and that some potential reforms would need an extended period for consultation and implementation. Accordingly, the paper also invites submissions identifying possible actions to improve the effectiveness of the Bank's regulations, particularly in relation to surcharging, that could be implemented on a faster timeline. The Board will also consider any submissions on card payments regulation made in response to the current Government consultation on the FSI recommendations. Submissions on the Issues Paper were sought by 24 April 2015.