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

Used Boat Interest Builds as Spring Buying Season Nears

27 Aug 2026: Paige Estritori

Australia's used boat market is moving back into sharper focus as the spring boating season approaches, with marine classifieds and dealer activity again putting late-model trailer boats, fishing rigs, family runabouts, personal watercraft and cruisers in front of motivated buyers. For households that have spent winter researching models, the next few weeks may bring more inspection opportunities, but also more pressure to act quickly when a suitable vessel appears. - read more

Fresh Rate Signals Put Boat Finance Back Under the Microscope

13 Aug 2026: Paige Estritori

Australia's winter boat show season has left many buyers with brochures, dealer follow-ups and a clearer sense of the vessel they want. The latest finance market signals now point to the next challenge: making sure the loan structure is as carefully chosen as the boat itself. - read more

After the Sydney Boat Show, Finance Planning Takes Centre Stage

05 Aug 2026: Paige Estritori

With the 2026 Sydney Boat Show now complete, many Australian buyers are moving from browsing mode into decision mode. The event brought a broad mix of trailer boats, fishing craft, family cruisers, personal watercraft, electronics and accessories into one place, giving would-be owners a valuable chance to compare models and speak with dealers. The next step, however, is less glamorous and more important: turning enthusiasm into a sustainable finance plan. - read more

Boat Buyers Urged to Check the Numbers as Show Season Builds

29 Jul 2026: Paige Estritori

Australia’s major boat show calendar is again putting boating dreams in front of thousands of would-be buyers, with new launches, dealer promotions and late-model used vessels all competing for attention. For households considering a first boat or an upgrade, the excitement is understandable. The more important story, however, is financial discipline: the best-looking deal on the stand is not always the lowest-cost ownership outcome over the life of a loan. - read more

Sydney Boat Show Puts Boat Buyers Back in Planning Mode

22 Jul 2026: Paige Estritori

The 2026 Sydney Boat Show is shaping up as a timely checkpoint for Australians thinking about a first boat, an upgrade or a move into a more capable family, fishing or cruising vessel. Returning to Sydney Showground at Sydney Olympic Park from 30 July to 2 August, the event is expected to bring together more than 120 local and international exhibitors, hundreds of boats and thousands of marine products across boating, fishing, watersports and outdoor lifestyle categories. - read more

What July's Boat Loan Rate Update Means for Buyers

15 Jul 2026: Paige Estritori

Australian boat buyers have a fresh snapshot of the lending market, with Canstar's boat loan comparison data updated on 15 July 2026. The update shows indicative unsecured boat loan offers for a $20,000 loan over three years, with some listed comparison rates starting from 5.95% for applicants who meet strong credit criteria. - read more

Click for more Finance News