{"id":"F2013L00038","name":"Payment Systems (Regulation) Act 1998 - Interchange Fees in the EFTPOS System (November 2012)","slug":"payment-systems-regulation-act-1998-interchange-fees-in-the-eftpos-system-november-2012","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":126862,"registerId":"commonwealth-F2013L00038-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Payment Systems (Regulation) Act 1998","sectionType":"part","heading":"Payment Systems (Regulation) Act 1998","content":"![C:\\Users\\chani\\Desktop\\rba-logo-horizontal-black.png](image.001.png)\n\n## Payment Systems (Regulation) Act 1998\n\n## Interchange Fees in the EFTPOS System\n\nThis notice is published in accordance with the requirements set out in Section 29(2)(a) of the Payment Systems (Regulation) Act 1998 (the Act).\n\nThe Reserve Bank of Australia determines, in accordance with Section 18 of the Act, the Standard Interchange Fees in the EFTPOS System to be complied with by participants in the payment system operated within Australia known as the EFTPOS system, which was designated as a payment system on 12 June 2012 in Designation No 1 of 2012. The Standard will commence on 1 July 2013.\n\n### Purpose and effect of the Standard\n\nThe purpose of the Standard is to promote competition and efficiency in the Australian payments system by ensuring that interchange fees in the EFTPOS system can be set within similar regulatory constraints to the other debit card systems. The Standard requires that bilateral interchange fees and the weighted average of multilateral interchange fees in the EFTPOS system be subject to the same cap that applies to the Visa Debit system – currently 12 cent paid to the issuer.\n\nThe Standard is determined concurrently with the revocation of the previous Standard, The Setting of Interchange Fees in the EFTPOS System, as applied to the EFTPOS system designated in Designation No 2 of 2004. The practical effect is to remove the requirement under the previous Standard that bilateral interchange fees in the EFTPOS system be between 4 and 5 cents, paid to the acquirer, and to replace it with a requirement that bilateral fees not exceed the benchmark set for the Visa Debit system – currently 12 cents paid to the issuer. The weighted average of multilateral interchange fees in the EFTPOS system is also capped at the Visa Debit benchmark, as it was under the previous Standard. In addition, the Standard requires transparency of EFTPOS interchange fees and introduces a requirement for ePAL to certify annually to the Reserve Bank that it has complied with the Standard.\n\nThese changes are expected to promote competition between debit card systems in Australia and the development of a more efficient payments system.\n\nSigned\n\nGlenn Stevens\n\nGovernor\n\nReserve Bank of Australia\n\n29 November 2012\n\n  \n\nStandard\n\n## Interchange Fees in the EFTPOS System\n\n### Objective\n\nThe objective of this Standard is to ensure that the setting of interchange fees in the designated EFTPOS payment system promotes:\n\n    (i) efficiency; and\n    (ii) competition\n\nin the Australian payments system.\n\n### Commencement date\n\n    This Standard comes into force on 1 July 2013 and is current as at that date.\n\n### Application\n\n    2. This Standard is determined under Section 18 of the Payment Systems (Regulation) Act 1998.\n    3. This Standard applies to the payment system operated within Australia known as the EFTPOS system, which was designated as a payment system on 12 June 2012 and is referred to in this Standard as the EFTPOS system.\n    4. In this Standard:\n    ‘Bilateral Agreement’ has the meaning given in the EFTPOS Scheme Rules and also includes any other agreement permitted under the EFTPOS Scheme Rules between two or more Members to pay or receive interchange fees that vary from those specified by the Company as payable between Members;\n    a ‘bilateral interchange fee’ is an interchange fee that is agreed between two or more Members under a Bilateral Agreement for payment solely between those Members in relation to EFTPOS Transactions;\n    ‘Company’ means EFTPOS Payments Australia Limited (ABN 37 136 180 366);\n    ‘EFTPOS Acquirer’ has the same meaning as in the EFTPOS Scheme Rules;\n    ‘EFTPOS Interchange Activity’ has the same meaning as in the EFTPOS Scheme Rules;\n    ‘EFTPOS Issuer’ has the same meaning as in the EFTPOS Scheme Rules;\n    ‘EFTPOS Scheme Rules’ are the rules promulgated under the constitution of the Company and any schedule, document, specification or rule published by the Company pursuant to those rules;\n    ‘EFTPOS Transaction’ has the same meaning as in the EFTPOS Scheme Rules but excludes credits, refunds, reversals and chargebacks;\n    ‘financial year’ is a 12-month period ending 30 June;\n    an ‘interchange fee’ is a wholesale fee payable between an EFTPOS Issuer and an EFTPOS Acquirer or Self Acquirer, directly or indirectly, in relation to an EFTPOS Transaction in the EFTPOS system;\n    ‘Member’ means a member of the Company;\n    a ‘multilateral interchange fee’ is an interchange fee that is determined by the Company to apply to EFTPOS Transactions between Members unless a Bilateral Agreement is in place and applies;\n    a ‘Self Acquirer’ has the same meaning as in the EFTPOS Scheme Rules;\n    terms defined in the Payment Systems (Regulation) Act 1998 have the same meaning in this Standard.\n    5. The Company and each Member must do all things necessary on its part to ensure compliance with this Standard.\n    6. If any part of this Standard is invalid, the Standard is ineffective only to the extent of such part without invalidating the remaining parts of this Standard.\n    7. This Standard is to be interpreted:\n\n    in accordance with its objective; and\n    by looking beyond form to substance.\n\n### Interchange fee\n\n    8. For the purposes of this Standard, an interchange fee paid from an EFTPOS Acquirer to an EFTPOS Issuer is to be expressed as a positive number and an interchange fee paid from an EFTPOS Issuer to an EFTPOS Acquirer is to be expressed as a negative number.\n\n### Bilateral interchange fees\n\n    9. A bilateral interchange fee (excluding GST) that is paid on any EFTPOS Transaction in Australia must not exceed the bilateral interchange fee benchmark set out in paragraph 10 below.\n\n### Bilateral interchange fee benchmark\n\n    10. The bilateral interchange fee benchmark for the EFTPOS system at any time will be the same as the benchmark applying to the Visa Debit system at that time under the Standard The Setting of Interchange Fees in the Visa Debit Payment System and published on the Reserve Bank of Australia’s website.\n    11. The bilateral interchange fee benchmark may be re-calculated in accordance with the Standard The Setting of Interchange Fees in the Visa Debit Payment System.\n\n### Multilateral interchange fees\n\n    12. On each of the dates specified in paragraph 13, the weighted average of multilateral interchange fees implemented in the EFTPOS system in Australia (excluding GST) must not exceed the multilateral interchange fee benchmark set out in paragraph 15 below.\n    13. For the purposes of paragraph 12, the dates are:\n    (i) 1 November of every third year after 2012; and\n    (ii) the date any multilateral interchange fee is introduced, varied or removed in the EFTPOS system.\n    14. For the purposes of paragraph 12, the weighted average of multilateral interchange fees is to be expressed as a number of cents per EFTPOS Transaction. It is to be calculated by dividing the total interchange revenue that would have been payable had the interchange fees implemented on the dates specified in paragraph 13 been applicable in the previous financial year, by the number of EFTPOS Transactions in that year.\n\n### Multilateral interchange fee benchmark\n\n    15. The multilateral interchange fee benchmark for the EFTPOS system at any time will be the same as the benchmark applying to the Visa Debit system at that time under the Standard The Setting of Interchange Fees in the Visa Debit Payment System and published on the Reserve Bank of Australia’s website.\n    16. The multilateral interchange fee benchmark may be re-calculated in accordance with the Standard The Setting of Interchange Fees in the Visa Debit Payment System.\n\n### Transparency\n\n    17. The Company must publish any multilateral interchange fees applying to EFTPOS Transactions on its website or otherwise make these fees publicly available.\n    18. The Company must certify in writing to the Reserve Bank of Australia, on or before 30 November each year, that interchange fees in the EFTPOS system complied with this Standard over the prior 12 months ending 31 October.\n    19. Any EFTPOS Acquirer or Self Acquirer that is a party to a Bilateral Agreement must report to the Reserve Bank of Australia by 1 November each year the range of bilateral interchange fees it received or paid in the previous financial year. The Reserve Bank of Australia may publish the industry range of bilateral interchange fees on its website.","sortOrder":0},{"sectionNumber":"Interchange Fees in the EFTPOS System","sectionType":"part","heading":"Interchange Fees in the EFTPOS System","content":"## Interchange Fees in the EFTPOS System\n\nThis notice is published in accordance with the requirements set out in Section 29(2)(a) of the Payment Systems (Regulation) Act 1998 (the Act).\n\nThe Reserve Bank of Australia determines, in accordance with Section 18 of the Act, the Standard Interchange Fees in the EFTPOS System to be complied with by participants in the payment system operated within Australia known as the EFTPOS system, which was designated as a payment system on 12 June 2012 in Designation No 1 of 2012. The Standard will commence on 1 July 2013.","sortOrder":1},{"sectionNumber":"Purpose and effect of the Standard","sectionType":"division","heading":"Purpose and effect of the Standard","content":"### Purpose and effect of the Standard\n\nThe purpose of the Standard is to promote competition and efficiency in the Australian payments system by ensuring that interchange fees in the EFTPOS system can be set within similar regulatory constraints to the other debit card systems. The Standard requires that bilateral interchange fees and the weighted average of multilateral interchange fees in the EFTPOS system be subject to the same cap that applies to the Visa Debit system – currently 12 cent paid to the issuer.\n\nThe Standard is determined concurrently with the revocation of the previous Standard, The Setting of Interchange Fees in the EFTPOS System, as applied to the EFTPOS system designated in Designation No 2 of 2004. The practical effect is to remove the requirement under the previous Standard that bilateral interchange fees in the EFTPOS system be between 4 and 5 cents, paid to the acquirer, and to replace it with a requirement that bilateral fees not exceed the benchmark set for the Visa Debit system – currently 12 cents paid to the issuer. The weighted average of multilateral interchange fees in the EFTPOS system is also capped at the Visa Debit benchmark, as it was under the previous Standard. In addition, the Standard requires transparency of EFTPOS interchange fees and introduces a requirement for ePAL to certify annually to the Reserve Bank that it has complied with the Standard.\n\nThese changes are expected to promote competition between debit card systems in Australia and the development of a more efficient payments system.\n\nSigned\n\nGlenn Stevens\n\nGovernor\n\nReserve Bank of Australia\n\n29 November 2012\n\n  \n\nStandard","sortOrder":2},{"sectionNumber":"Objective","sectionType":"division","heading":"Objective","content":"### Objective\n\nThe objective of this Standard is to ensure that the setting of interchange fees in the designated EFTPOS payment system promotes:\n\n    (i) efficiency; and\n    (ii) competition\n\nin the Australian payments system.","sortOrder":4},{"sectionNumber":"Commencement date","sectionType":"division","heading":"Commencement date","content":"### Commencement date\n\n    This Standard comes into force on 1 July 2013 and is current as at that date.","sortOrder":5},{"sectionNumber":"Application","sectionType":"division","heading":"Application","content":"### Application\n\n    2. This Standard is determined under Section 18 of the Payment Systems (Regulation) Act 1998.\n    3. This Standard applies to the payment system operated within Australia known as the EFTPOS system, which was designated as a payment system on 12 June 2012 and is referred to in this Standard as the EFTPOS system.\n    4. In this Standard:\n    ‘Bilateral Agreement’ has the meaning given in the EFTPOS Scheme Rules and also includes any other agreement permitted under the EFTPOS Scheme Rules between two or more Members to pay or receive interchange fees that vary from those specified by the Company as payable between Members;\n    a ‘bilateral interchange fee’ is an interchange fee that is agreed between two or more Members under a Bilateral Agreement for payment solely between those Members in relation to EFTPOS Transactions;\n    ‘Company’ means EFTPOS Payments Australia Limited (ABN 37 136 180 366);\n    ‘EFTPOS Acquirer’ has the same meaning as in the EFTPOS Scheme Rules;\n    ‘EFTPOS Interchange Activity’ has the same meaning as in the EFTPOS Scheme Rules;\n    ‘EFTPOS Issuer’ has the same meaning as in the EFTPOS Scheme Rules;\n    ‘EFTPOS Scheme Rules’ are the rules promulgated under the constitution of the Company and any schedule, document, specification or rule published by the Company pursuant to those rules;\n    ‘EFTPOS Transaction’ has the same meaning as in the EFTPOS Scheme Rules but excludes credits, refunds, reversals and chargebacks;\n    ‘financial year’ is a 12-month period ending 30 June;\n    an ‘interchange fee’ is a wholesale fee payable between an EFTPOS Issuer and an EFTPOS Acquirer or Self Acquirer, directly or indirectly, in relation to an EFTPOS Transaction in the EFTPOS system;\n    ‘Member’ means a member of the Company;\n    a ‘multilateral interchange fee’ is an interchange fee that is determined by the Company to apply to EFTPOS Transactions between Members unless a Bilateral Agreement is in place and applies;\n    a ‘Self Acquirer’ has the same meaning as in the EFTPOS Scheme Rules;\n    terms defined in the Payment Systems (Regulation) Act 1998 have the same meaning in this Standard.\n    5. The Company and each Member must do all things necessary on its part to ensure compliance with this Standard.\n    6. If any part of this Standard is invalid, the Standard is ineffective only to the extent of such part without invalidating the remaining parts of this Standard.\n    7. This Standard is to be interpreted:\n\n    in accordance with its objective; and\n    by looking beyond form to substance.","sortOrder":6},{"sectionNumber":"Interchange fee","sectionType":"division","heading":"Interchange fee","content":"### Interchange fee\n\n    8. For the purposes of this Standard, an interchange fee paid from an EFTPOS Acquirer to an EFTPOS Issuer is to be expressed as a positive number and an interchange fee paid from an EFTPOS Issuer to an EFTPOS Acquirer is to be expressed as a negative number.","sortOrder":7},{"sectionNumber":"Bilateral interchange fees","sectionType":"division","heading":"Bilateral interchange fees","content":"### Bilateral interchange fees\n\n    9. A bilateral interchange fee (excluding GST) that is paid on any EFTPOS Transaction in Australia must not exceed the bilateral interchange fee benchmark set out in paragraph 10 below.","sortOrder":8},{"sectionNumber":"Bilateral interchange fee benchmark","sectionType":"division","heading":"Bilateral interchange fee benchmark","content":"### Bilateral interchange fee benchmark\n\n    10. The bilateral interchange fee benchmark for the EFTPOS system at any time will be the same as the benchmark applying to the Visa Debit system at that time under the Standard The Setting of Interchange Fees in the Visa Debit Payment System and published on the Reserve Bank of Australia’s website.\n    11. The bilateral interchange fee benchmark may be re-calculated in accordance with the Standard The Setting of Interchange Fees in the Visa Debit Payment System.","sortOrder":9},{"sectionNumber":"Multilateral interchange fees","sectionType":"division","heading":"Multilateral interchange fees","content":"### Multilateral interchange fees\n\n    12. On each of the dates specified in paragraph 13, the weighted average of multilateral interchange fees implemented in the EFTPOS system in Australia (excluding GST) must not exceed the multilateral interchange fee benchmark set out in paragraph 15 below.\n    13. For the purposes of paragraph 12, the dates are:\n    (i) 1 November of every third year after 2012; and\n    (ii) the date any multilateral interchange fee is introduced, varied or removed in the EFTPOS system.\n    14. For the purposes of paragraph 12, the weighted average of multilateral interchange fees is to be expressed as a number of cents per EFTPOS Transaction. It is to be calculated by dividing the total interchange revenue that would have been payable had the interchange fees implemented on the dates specified in paragraph 13 been applicable in the previous financial year, by the number of EFTPOS Transactions in that year.","sortOrder":10},{"sectionNumber":"Multilateral interchange fee benchmark","sectionType":"division","heading":"Multilateral interchange fee benchmark","content":"### Multilateral interchange fee benchmark\n\n    15. The multilateral interchange fee benchmark for the EFTPOS system at any time will be the same as the benchmark applying to the Visa Debit system at that time under the Standard The Setting of Interchange Fees in the Visa Debit Payment System and published on the Reserve Bank of Australia’s website.\n    16. The multilateral interchange fee benchmark may be re-calculated in accordance with the Standard The Setting of Interchange Fees in the Visa Debit Payment System.","sortOrder":11},{"sectionNumber":"Transparency","sectionType":"division","heading":"Transparency","content":"### Transparency\n\n    17. The Company must publish any multilateral interchange fees applying to EFTPOS Transactions on its website or otherwise make these fees publicly available.\n    18. The Company must certify in writing to the Reserve Bank of Australia, on or before 30 November each year, that interchange fees in the EFTPOS system complied with this Standard over the prior 12 months ending 31 October.\n    19. Any EFTPOS Acquirer or Self Acquirer that is a party to a Bilateral Agreement must report to the Reserve Bank of Australia by 1 November each year the range of bilateral interchange fees it received or paid in the previous financial year. The Reserve Bank of Australia may publish the industry range of bilateral interchange fees on its website.","sortOrder":12}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This Standard represents a recalibration of existing regulatory controls rather than scope expansion. It replaces a previous EFTPOS interchange fee Standard from 2004, maintaining the same fundamental objective (promoting competition and efficiency) and similar structural elements (benchmark caps, transparency requirements). The change from acquirer-pays to issuer-pays fee direction is a substantive policy shift, but remains within the original legislative intent of regulating payment system efficiency under the Payment Systems (Regulation) Act 1998."},"complexity_factors":["13 defined terms in the interpretation section, many of which reference external 'EFTPOS Scheme Rules' not contained in the document","Dynamic benchmarking mechanism where caps are determined by reference to a separate Visa Debit Standard published on the RBA website, creating external dependency","Bilateral vs multilateral fee distinction requiring different calculation methods and compliance dates","Weighted average calculation formula for multilateral fees involving hypothetical retrospective application of rates","Multiple reporting obligations with specific deadlines (30 November for certification, 1 November for bilateral fee ranges)","Cross-reference to the Payment Systems (Regulation) Act 1998 for additional definitions and enforcement mechanisms"],"plain_english_summary":"The RBA Standard caps interchange fees on EFTPOS transactions to the same low rate applied to Visa Debit, shifts those fees to card‑issuing banks (aligning EFTPOS with international schemes), and requires ePAL and banks to publish and report fee information. \n\nIt affects banks, ePAL, and payment processors, and aims to boost competition with card networks, lowering costs for merchants and ultimately consumers by creating a more efficient domestic payments system."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"Yes. The Standard replaces the prior mandatory bilateral interchange of 4–5¢ paid to acquirers with a cap aligned to the Visa Debit benchmark (paras 9–11, 15). It therefore changes who may receive interchange (issuer vs acquirer), removes a fixed-rate mandate, allows bilateral agreements up to the Visa Debit benchmark, and adds transparency and annual certification/reporting requirements (paras 17–19)."},"complexity_factors":["Cross-reference to a separate standard (The Setting of Interchange Fees in the Visa Debit Payment System) to determine the benchmark, creating dependency on another instrument for key values (paras 10, 15).","Multiple fee types and directions (bilateral vs multilateral; acquirer-to-issuer expressed positive, issuer-to-acquirer negative) requiring precise accounting (para 8; paras 9, 12).","Weighted-average calculation method for multilateral fees requires historical transaction and revenue data (para 14).","Timing rules trigger recalculation and compliance checks on set dates and when fees change (para 13).","Mandatory publication, annual certification by the Company and reporting by acquirers/self-acquirers impose recurring administrative and data-collection burdens (paras 17–19).","Permitted Bilateral Agreements that can vary fees introduce negotiation and monitoring complexity across members and may require the Reserve Bank to aggregate and publish ranges (para 4; para 19).","Obligation on the Company and each Member to ‘do all things necessary’ to ensure compliance creates broad compliance duties and potential legal uncertainty about scope (para 5).","Savings/severability clause and interpretive rule to look beyond form to substance require substantive legal interpretation if disputes arise (paras 6–7)."],"plain_english_summary":"This Standard caps interchange fees in the Australian EFTPOS system by tying bilateral fees and the weighted average of multilateral fees to the Visa Debit benchmark (then 12¢ to issuers). It replaces the previous fixed 4–5¢ bilateral requirement that was paid to acquirers.\n\nEFTPOS Payments Australia Ltd and its members must publish fees, certify annual compliance and report bilateral fee ranges to the Reserve Bank. The rule changes who receives interchange, constrains pricing, and imposes reporting and compliance duties on banks and payment participants."}},"importantCases":[],"_links":{"self":"/api/acts/payment-systems-regulation-act-1998-interchange-fees-in-the-eftpos-system-november-2012","history":"/api/acts/payment-systems-regulation-act-1998-interchange-fees-in-the-eftpos-system-november-2012/history","analysis":"/api/acts/payment-systems-regulation-act-1998-interchange-fees-in-the-eftpos-system-november-2012/analysis","conflicts":"/api/acts/payment-systems-regulation-act-1998-interchange-fees-in-the-eftpos-system-november-2012/conflicts","importantCases":"/api/acts/payment-systems-regulation-act-1998-interchange-fees-in-the-eftpos-system-november-2012/important-cases","documents":"/api/acts/payment-systems-regulation-act-1998-interchange-fees-in-the-eftpos-system-november-2012/documents"}}