‘The simplest solution’: Major Aussie bank calls for big fee changes—here’s what it means for you
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Australians are no strangers to debates about fairness, especially when it comes to financial systems and everyday expenses.
Behind closed doors, a push for change is sparking conversations that could impact millions.
As differing voices weigh in, the stakes for consumers and businesses alike have never been higher.
The Commonwealth Bank of Australia (CBA) called on the Reserve Bank to eliminate surcharges on debit and credit card payments, a move that could save Australians thousands of dollars annually.
According to consumer research firm Canstar, Australians collectively spend around $1 billion each year on surcharges.
The Australian Financial Review first reported details of the CBA’s submission before its public release.
The Reserve Bank has been reviewing the payment system to ensure its fairness and efficiency.
The Albanese government has already supported the removal of surcharges on debit payments, with Treasurer Jim Chalmers confirming this would occur once the Reserve Bank's report is finalised.
CBA argued that the removal of surcharges should also include credit card transactions.
Mastercard shared a similar stance in its submission to the Reserve Bank.
On 17 January, reporter Rosanna Kingsun discussed potential changes to the surcharge system.
‘The Reserve Bank has been reviewing the payment system to ensure it’s fair and fit for purpose,’ Kingsun said.
‘Subject to that review, the government has promised to scrap debit card charges by end of the year.'
‘The Commonwealth Bank is expected to say in its submission to the RBA that the simplest solution is to get rid of all card surcharges.'
‘Other banks, however, don’t support extending a ban to credit cards. Small businesses want card charges scrapped altogether, arguing if they are banned the fee will simply be embedded in prices.'
‘The Treasurer has said he wants to ensure there aren’t unintended consequences for business while ensuring customers aren’t punished for using digital payments.’
In December, the Commonwealth Bank reversed its decision to introduce a $3 assisted withdrawal fee for Smart Access accounts, which Complete Access customers were set to transition to automatically.
‘Clearly we’ve done a poor job of communicating aspects of this change for our customers,’ CBA executive Angus Sullivan said.
‘We know that changes are difficult, especially at this time of year.’
Would scrapping these fees make your life easier, or do you worry about hidden costs creeping into prices? Let us know your thoughts in the comments below!
Behind closed doors, a push for change is sparking conversations that could impact millions.
As differing voices weigh in, the stakes for consumers and businesses alike have never been higher.
The Commonwealth Bank of Australia (CBA) called on the Reserve Bank to eliminate surcharges on debit and credit card payments, a move that could save Australians thousands of dollars annually.
According to consumer research firm Canstar, Australians collectively spend around $1 billion each year on surcharges.
The Australian Financial Review first reported details of the CBA’s submission before its public release.
The Reserve Bank has been reviewing the payment system to ensure its fairness and efficiency.
The Albanese government has already supported the removal of surcharges on debit payments, with Treasurer Jim Chalmers confirming this would occur once the Reserve Bank's report is finalised.
CBA argued that the removal of surcharges should also include credit card transactions.
Mastercard shared a similar stance in its submission to the Reserve Bank.
On 17 January, reporter Rosanna Kingsun discussed potential changes to the surcharge system.
‘The Reserve Bank has been reviewing the payment system to ensure it’s fair and fit for purpose,’ Kingsun said.
‘Subject to that review, the government has promised to scrap debit card charges by end of the year.'
‘The Commonwealth Bank is expected to say in its submission to the RBA that the simplest solution is to get rid of all card surcharges.'
‘Other banks, however, don’t support extending a ban to credit cards. Small businesses want card charges scrapped altogether, arguing if they are banned the fee will simply be embedded in prices.'
‘The Treasurer has said he wants to ensure there aren’t unintended consequences for business while ensuring customers aren’t punished for using digital payments.’
In December, the Commonwealth Bank reversed its decision to introduce a $3 assisted withdrawal fee for Smart Access accounts, which Complete Access customers were set to transition to automatically.
‘Clearly we’ve done a poor job of communicating aspects of this change for our customers,’ CBA executive Angus Sullivan said.
‘We know that changes are difficult, especially at this time of year.’
Would scrapping these fees make your life easier, or do you worry about hidden costs creeping into prices? Let us know your thoughts in the comments below!
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