Australian Businesses Face Hefty Card Scheme Fees as Pressure Mounts for Transparency

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The past financial year saw an alarming $1.9 billion in scheme fees burdening businesses and consumers, compelling calls for action from the Reserve Bank of Australia (RBA). Scheme fees, charged by payment networks such as MasterCard, Visa, and American Express, are applied whenever a bank processes card payments for a business and are also incurred to maintain the card provider's customer service.

These fees largely impact banks and, subsequently, their business clients who struggle with higher costs. Card providers frequently compete for lower scheme fees, transferring the financial burden to end-users through elevated prices on goods and services.

In the 12 months leading up to June 2023, these scheme fees, amounting to roughly $1.9 billion, were a substantial 43 percent increase from the previous financial year. This spike outpaced the 16 percent increase in card transactions during the same period.

Scheme fees are typically a percentage of the total transaction amount, although fees may also be levied based on the number of merchant outlets a bank services, regardless of transaction volume.

The unregulated growth of these charges has pushed RBA Governor Michele Bullock to consider regulatory intervention. Such measures could mandate transactions to default to the least costly card network, encouraging these networks to reduce their fees.

Ellis Connolly, head of payments policy at the RBA, cited that the bulk of this fee increase stems from a resurgence in international card transactions following the end of COVID-19 restrictions. He emphasized on Tuesday that the fees, though substantial and growing, are still "complex and opaque," reinforcing the need for increased transparency.

"There is notable variation in scheme fees among different card networks," Mr. Connolly mentioned during his address at the Merchant Risk Council Conference in Melbourne. He argued that greater fee transparency would aid merchants in understanding the costs and making more informed choices about which network to use for debit transactions.

However, Mr. Connolly admitted that efforts by the RBA to disclose specific fee data were thwarted. International card networks denied permission to publish details on their charges when prompted.

"We were unable to release information on individual network fees as international card networks declined our request for permission," he revealed.

Highlighting the ongoing quest for clarity, Mr. Connolly added, "We will bring the push for greater transparency over scheme fees into our upcoming review for further consultation."

Published:Wednesday, 19th Jun 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

Austal Expands Patrol Boat Fleet with New Contract for Australian Border Force

11 May 2026: Paige Estritori

Austal Limited has been awarded a contract extension valued at approximately A$150.3 million to construct two additional Evolved Cape-class Patrol Boats (ECCPBs) for the Australian Border Force (ABF). This brings the total number of ECCPBs contracted for delivery to the ABF to six, underscoring the ongoing commitment to bolstering Australia's maritime security capabilities. - read more

Incat's Hull 096 Embarks on Sea Trials: A Milestone in Electric Ferry Innovation

11 May 2026: Paige Estritori

Incat's Hull 096, the world's largest battery-electric ferry, has commenced sea trials on the River Derwent in Hobart. This 130-metre vessel, capable of carrying 2,100 passengers and 225 vehicles, represents a significant advancement in sustainable marine transportation. - read more

The Boat Works Breaks Ground on Pier 25, Welcomes Marine Solutions Australia

11 May 2026: Paige Estritori

Construction has commenced on Pier 25 at The Boat Works on the Gold Coast, marking a significant expansion of one of Australia's largest marine maintenance and refit facilities. This architect-designed, multi-storey development will house marine showrooms, office suites, and crew accommodation upon its completion in late 2026. - read more

d'Albora Marinas Enhances Sustainable Boating with GoBoat Acquisition

03 May 2026: Paige Estritori

d'Albora Marinas, Australia's largest marina and hospitality network, has recently acquired GoBoat Australia, a company renowned for its sustainable, self-drive electric picnic boats. This strategic move aims to accelerate GoBoat's expansion and strengthen d'Albora's national presence in the marine industry. - read more

Vision Marine Technologies Secures Full Commitment for 2026 Electric Boat Production

03 May 2026: Paige Estritori

Vision Marine Technologies Inc. has announced that its 2026 electric boat production is substantially committed, reflecting a surge in commercial and retail agreements. This milestone underscores the growing demand for sustainable marine solutions and positions Vision Marine as a leader in the electric boating industry. - read more

Marinas26 Conference to Highlight AI's Impact on Marina Operations

25 Apr 2026: Paige Estritori

The Marina Industries Association (MIA) has unveiled the comprehensive program for Marinas26, its biennial conference and trade exhibition, scheduled for 24-27 May 2026 at the RACV Royal Pines Resort on Queensland’s Gold Coast. Embracing the 'Future Smart' theme, the event aims to delve into emerging trends and technologies poised to reshape the marina and boatyard sector across the Asia-Pacific region. - read more

Click for more Finance News