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RBA Card Payments Regulation
The Reserve Bank of Australia (RBA) has recently introduced new regulatory standards around card payment surcharges that businesses are permitted to pass onto their customers for card purchases.
We have answered some of the frequently asked questions around the regulation and its impact below.
Frequently Asked Questions
I do not pass card transaction fees onto my customers. Does the regulation impact my business?
Businesses that do not pass card surcharges onto their customers will not be affected by this regulation.
Am I still allowed to surcharge my customers for card transaction fees?
Yes. However, the updated regulations limit the amount that can be surcharged to the cost of card acceptance.
What is the cost of card acceptance?
The cost of acceptance refers to card processing costs that businesses bear when they accept card payments from their customers. These may include transaction-based fees such as merchant service fees.
Acceptable costs will be limited to fees paid to the merchant's acquirer or processor (such as Ezidebit) and certain other observable costs paid to third parties for services directly related to accepting particular types of cards.
I use Ezidebit to surcharge my payers, do I need to change anything?
No. As an Ezidebit client, we expect there will be no effect on your payments processed via the Ezidebit platform.
This is because the Ezidebit system limits any pass through or surcharging to the cost of acceptance.
When do the new regulations come into effect?
The updated regulations apply in two stages:
- ‘Large Merchants’ will be required to comply with the new regulations from 1 September 2016.
- All other merchants will need to comply with the regulations from 1 September 2017.
What is a ‘Large Merchant’?
A ‘large merchant’ is defined as one that satisfies at least two of the following requirements:
- employs 50 or more employees;
- earns consolidated gross revenue of $25 million or more; or
- whose value of consolidated gross assets exceeds $12.5 million.
Where can I find more information?
The Australia Competition and Consumer Commission (ACCC) website contains publicly available information on the new regulations. The ACCC is responsible for enforcing the new regulations.
Additional information may be found on the Reserve Bank of Australia (RBA) website.
If you can't find the answers or if you have any specific questions about the regulations, email us at [email protected] or call us on 1300 763 256.