CTHIn ForceLegislation
Payment Systems (Regulation) Act 1998 - The Setting of Interchange Fees in the Visa Debit Payment System, the ‘Honour All Cards’ Rule in the Visa Debit and Visa Credit Card Systems and the ‘No Surcharge’ Rule in the Visa Debit System
MethodologyMethodology
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Methodology
13. The benchmark is to be calculated by the Reserve Bank of Australia using data for the reference year supplied by the credit card schemes designated by the Reserve Bank of Australia and to which the Standard The Setting of Wholesale (‘Interchange’) Fees in the Designated Credit Card Schemes applies.
14. The benchmark is to be calculated as follows:
(a) A cost base will be calculated for each designated credit card scheme by dividing the costs of processing and authorisation described in paragraphs 13(i) and 13(iii) of the Standard The Setting of Wholesale (‘Interchange’) Fees in the Designated Credit Card Schemes in the reference year by the total value of credit card transactions in the reference year.
(b) A weighted average of the cost bases in the designated credit card schemes will be calculated. The weights to be used are the shares of the value of credit card transactions of each designated credit card scheme in the value of total credit card transactions in the designated credit card schemes in the reference year.
(c) This weighted average will be multiplied by the average value of all scheme debit transactions (both MasterCard and Visa) in the reference year, calculated using the data provided to the Reserve Bank of Australia in accordance with paragraph 9, to yield a benchmark expressed as a number of cents per transaction.
15. The Reserve Bank of Australia will calculate the benchmark by 30 September of the relevant year and publish it on its website.