Industry calls out poor regulation

The Australian Retailers Association (ARA) has spoken out against the Reserve Bank of Australia's (RBA) unequal regulation of companies providing credit card payments.

The ARA said that retailers are now bearing the brunt of high acceptance costs through applying surchases to customers during payment processes. 

ARA executive director Russell Zimmerman believes that poor regulation by the RBA is leaving retailers and customers alike in disarray.

“For many years, unequal regulation of payment cards has caused headaches for retailers.

“While the cost of accepting some cards has been reducing due to regulation, accepting other cards has remained unjustifiably high – an issue that has caused confusion for both retailers and shoppers.

“It is simply baffling why the RBA chooses to regulate certain payment companies, but not others.

“The ARA is calling for the RBA to apply the same rules to be applied on all payment schemes.”

Card companies taking the biggest hit on retailers reportedly include American Express, Diners Club and China Union Pay.