START OF RESERVE BANK REGULATIONS ON CREDIT CARD INTERCHANGE

Sydney, 31 October, 2003:  The Australian Bankers’ Association (ABA) welcomes the effective end of the credit card reform process with today’s commencement of the new interchange pricing regulation.   This regulation means that average interchange fees will fall by half.   As foreshadowed throughout the two-year consultation phase by the Reserve Bank of Australia (RBA) and the Australian Bankers’ Association (amongst many), this reduction will influence retail prices for both merchants and credit cardholders:   Merchants will see decreases in average prices for accepting credit cards for payment; and   Cardholders will see increases in average prices for using credit cards, particularly those with reward schemes. The ABA hopes that merchants will pass on those savings in the form of lower prices for good and services.   Credit card reform, including the interchange regulation, received strong support from both the Australian Labor Party and the Coalition Government and also from consumer organisations.    For further information:   Heather Wellard ABA Public Relations Phone: 02 8298 0411 Mobile: 0409 830 439 ENDS