Financial Crime World

Banking Regulations 2020: Payment Systems Regulation in Australia

The Reserve Bank of Australia (RBA) has introduced a range of regulations to govern payment systems in Australia, aimed at promoting efficiency and competition in the industry. Under the Payment Systems (Regulation) Act 1998, the RBA may designate a payment system if it considers that designating the system is in the public interest.

Payment Cards Regulation

The RBA has introduced standards for payment cards, including interchange fees and scheme rules relating to merchant pricing. These standards aim to promote transparency and fairness in payment card transactions.

Standards

Several standards have been established under the Payment Systems (Regulation) Act 1998. These include:

  • Standard No.1 of 2016: The Setting of Interchange Fees in the Designated Credit Card Schemes and Net Payments to Issuers
  • Standard No.2 of 2016: The Setting of Interchange Fees in the Designated Debit and Prepaid Card Schemes and Net Payments to Issuers
  • Standard No.3 of 2016: Scheme Rules Relating to Merchant Pricing for Credit, Debit and Prepaid Card Transactions

These standards have been amended several times since their initial publication, with the most recent amendments taking effect in January 2022.

ATM System

The RBA has also established regulations for the ATM system, aimed at promoting access to ATMs for consumers. Exemptions from these regulations may be granted by the RBA in certain circumstances.

Exemptions

Several exemptions have been granted by the RBA under the Access Regime for the ATM System. These include:

  • Exemption No.1 of 2009: Arrangement between Cashcard Limited and Bank of Western Australia Limited
  • Exemption No.1 of 2012: Arrangement among ATM industry participants in relation to ATM access for very remote Indigenous communities
  • Exemption No.1 of 2017: Arrangement between Indue Limited, Westpac Banking Corporation and DC Payments Limited
  • Exemption No.1 of 2021: Exemption allowing ATM participants to enter into multiple one-way arrangements

Consumers can find more information on these regulations by contacting the RBA at cardsregulation@rba.gov.au.