RESERVE BANK CONSULTATION DOCUMENT ON CREDIT CARD CHANGES Sydney, 14 December, 2001: The Australian Bankers’ Association (ABA) said the Reserve Bank’s proposals will dramatically alter the credit card system in Australia, affecting credit card customers and merchants. David Bell, Chief Executive of the ABA, said: “The Reserve Banks’ proposals will inevitably lead to significant changes to current benefits enjoyed by credit card users.” These include: 1. Reduction or elimination of the interest-free periods on credit cards; 2. Reduction or elimination of credit card loyalty points; 3. Review or watering down of guarantees for credit card payments (eg: no money back for Ansett airline tickets bought on credit cards when no service was delivered); 4. Review or withdrawal of merchant services like same-day settlement of transactions;  5. No protection against price discrimination by retailers against those customers who wish to use credit cards.     Mr Bell said: “Even though the reform package is predicated on the basis that retailers will reduce their prices as a result of the reforms, no guarantees or safeguards have been put in place to ensure this happens.”  “There are 10 million credit card users in Australia, we have amongst the lowest interchange fees in the world, and probably the most efficient system in the world.”  The ABA will now move into the second phase of the Reserve Bank’s reform inquiry, and consult with the Reserve Bank over their proposals. For further information: Heather Wellard, ABA PR Phone: 02 8298 0411 Mobile: 0409 830 439 ENDS