David Bell, Chief Executive of the ABA, said: “The ABA prefers self regulatory processes in preference to government regulation. However, under the circumstances, we understand the reasons behind the Reserve Bank’s decision to designate, and we hope this process is settled in a timely fashion.”

“Reforms to the EFTPOS payment system is the second tranche of the Reserve Bank’s comprehensive reform agenda outlined in the RBA/ACCC Joint Study released in October 2000.”

“The industry has already completed a substantial body of self regulated work to effect the RBA’s reforms for EFTPOS and this will serve as a good base for consultation with the RBA going forward.”

The first tranche of the reform agenda was to credit card networks. Credit card reform has already delivered retailers an annual saving of $430 million in lower merchant service fees and the ABA is not aware of any evidence that this saving has been passed on to retail consumers.

The ABA notes that the RBA has stated that it will not designate the ATM payment system at this stage – which is the third tranche of the RBA reform agenda. Industry stakeholders including banks, building societies, credit unions and independent ATM deployers will now need to consider how voluntary reform might be progressed in the light of the RBA’s decision.

For further information:

Heather Wellard

ABA Public Relations

Phone: 02 8298 0411

Mobile: 0409 830 439