PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Australia Announces a Debit Card Interchange Fee Ban

By Wesley Grant
October 15, 2024
in Debit, Merchant, News
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
australia debit card fee, same-day ACH,

To alleviate the inflationary pressure on consumers and small businesses, the Australian government has announced plans to ban interchange fees on debit card purchases.

The Australian central bank estimated that debit card surcharges cost customers A$1 billion ($671 million) per year. Debit card usage has picked up steam in the country since the pandemic, with the central bank reporting that less than 12% of retail transactions in Australia are made with cash.

These transaction fees cost small businesses in the long run. The Australian government identified instances where smaller merchants were charged twice the amount that large retailers paid for the same transaction.

Sending a Message

It will likely take over a year before the interchange fee ban is implemented, as the rule is still subject to review by the Reserve Bank of Australia. However, the government felt it was the right time to send a message to payment providers that unfair and excessive debit card surcharging must be eliminated.

Australia’s move follows the European Union’s lead, which banned  debit card interchange fees six years ago. Not long after, the UK instituted its own ban on both debit and credit card surcharges.

Seeking Clarity

In the U.S., debit card interchange fees are governed under Regulation II of the Durbin Amendment, which caps the fees at 0.05% of the transaction amount plus $0.21, with an additional $0.01 for fraud prevention measures.

Last year, U.S. regulators voted in favor of a proposal to lower debit interchange fees to 0.04% plus $0.144, as well as an increased fraud prevention rate of $0.013. The changes sparked controversy among merchants and issuers. Many merchants felt the reduction didn’t go far enough, while some issuers were concerned about the potential loss of revenue. Despite  a flood of commentary, there has been no ruling on the reduction yet.

Fees have long been top of mind for merchants, especially credit card interchange fees. After a highly publicized $30 billion settlement between Visa, Mastercard, and merchants was recently shelved, there is still no clarity on when U.S. merchants might see a reduction in credit card interchange fees either.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: AustraliaCredit Card FeesDebitDebit Card FeesDebit FeesInterchange FeesReserve Bank of Australia

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    healthcare payments

    The Healthcare Payments Industry Has a Perception Problem

    June 10, 2026
    continuous KYC

    The Future of KYC Is Layered—and Data-Driven

    June 9, 2026
    tokenized deposits

    As Crypto Challengers Emerge, Banks Turn to Tokenized Deposits

    June 8, 2026
    physical digital debit

    Whether Physical or Digital, Debit Cards Are a Payments Mainstay

    June 5, 2026
    agentic commerce

    Separating Hype from Reality in Emerging Payment Trends

    June 4, 2026
    agentic commerce

    Searching for Trust in Agentic Commerce

    June 3, 2026
    stablecoin

    Stablecoin Success Will Depend on More Than Technology

    June 2, 2026
    A man standing outdoors uses a cryptocurrency trading app on his smartphone. This represents mobile finance, freedom, and real-time investing.

    How Gamification Helps Drive Engagement in Digital Banking

    June 1, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result