Visa responds to RBA's review of Merchant Card Payment Costs and Surcharging

Commenting on the RBA’s Review of Merchant Card Payment Costs and Surcharging, Alan Machet, Group Country Manager for Visa Oceania, said, “A recent study by Visa showed 95 per cent of Australians wanted more action taken on surcharging. To this end, the RBA’s recommendation to ban surcharging on designated networks is a great outcome.

“On the other hand, the RBA is proposing sweeping reductions to interchange fees, with cuts reaching up to 88% in certain cases. This is a dramatic shift that would have ripple effects far beyond payments. It risks reducing local investment in fraud protection and innovation that safeguard consumers and strengthen Australia’s digital payments ecosystem.

“Visa remains committed to working constructively with the RBA, government, and industry to ensure that consumers and business receive the full benefits of secure and innovative payments for all Australians.”

New consumer research conducted by Visa on surcharging

• Misconceptions around surcharging are widespread:
  • Over half (56%) of Australians claim they understand surcharging rules, but when tested, only 25% correctly identify when surcharging is allowed. Meanwhile, 17% openly admit they didn’t know when surcharges are actually permitted.
  • One in four Australians (26%) wrongly believe surcharges apply only to credit card payments.

• More than two thirds of Australians (67%) choose to use a combination of both credit and debit cards:
  • These misconceptions don’t just live in theory; they’re influencing the daily payment decisions of many Australians.
  • A strong majority (85%) of Australians claim their preference is for surcharges to be built into the upfront price of goods and services.
  • This confusion has been feeding into frustration, with a strong majority (85%) of Australians claiming their preference is for surcharges to be built into the upfront price of goods and services.

• Fraud prevention and transaction security is a big priority for Australians
  • 97% of Aussies agreed that fraud prevention and transaction security is important to them