Jetski Loans Australia :: News
SHARE

Share this news item!

Australian Businesses Face Hefty Card Scheme Fees as Pressure Mounts for Transparency

Australian Businesses Face Hefty Card Scheme Fees as Pressure Mounts for Transparency

Australian Businesses Face Hefty Card Scheme Fees as Pressure Mounts for Transparency?w=400
Rising service charges affecting Australian businesses have sharpened calls for increased transparency and regulation in the payment card industry.

The past financial year saw an alarming $1.9 billion in scheme fees burdening businesses and consumers, compelling calls for action from the Reserve Bank of Australia (RBA). Scheme fees, charged by payment networks such as MasterCard, Visa, and American Express, are applied whenever a bank processes card payments for a business and are also incurred to maintain the card provider's customer service.

These fees largely impact banks and, subsequently, their business clients who struggle with higher costs. Card providers frequently compete for lower scheme fees, transferring the financial burden to end-users through elevated prices on goods and services.

In the 12 months leading up to June 2023, these scheme fees, amounting to roughly $1.9 billion, were a substantial 43 percent increase from the previous financial year. This spike outpaced the 16 percent increase in card transactions during the same period.

Scheme fees are typically a percentage of the total transaction amount, although fees may also be levied based on the number of merchant outlets a bank services, regardless of transaction volume.

The unregulated growth of these charges has pushed RBA Governor Michele Bullock to consider regulatory intervention. Such measures could mandate transactions to default to the least costly card network, encouraging these networks to reduce their fees.

Ellis Connolly, head of payments policy at the RBA, cited that the bulk of this fee increase stems from a resurgence in international card transactions following the end of COVID-19 restrictions. He emphasized on Tuesday that the fees, though substantial and growing, are still "complex and opaque," reinforcing the need for increased transparency.

"There is notable variation in scheme fees among different card networks," Mr. Connolly mentioned during his address at the Merchant Risk Council Conference in Melbourne. He argued that greater fee transparency would aid merchants in understanding the costs and making more informed choices about which network to use for debit transactions.

However, Mr. Connolly admitted that efforts by the RBA to disclose specific fee data were thwarted. International card networks denied permission to publish details on their charges when prompted.

"We were unable to release information on individual network fees as international card networks declined our request for permission," he revealed.

Highlighting the ongoing quest for clarity, Mr. Connolly added, "We will bring the push for greater transparency over scheme fees into our upcoming review for further consultation."

Published:Wednesday, 19th Jun 2024
Source: Paige Estritori

Share this news item:

Finance News

Overseas Investors Target Australian Real Estate Debt Overseas Investors Target Australian Real Estate Debt
13 Jun 2025: Paige Estritori

The Australian commercial real estate debt market is garnering attention from international investors, with the Canada Pension Plan Investment Board (CPP Investments) making significant inroads. In partnership with Nuveen, a global asset manager, a substantial investment strategy targeting Australian real estate debt has closed its second round. The total commitment exceeded $650 million, with CPP Investments contributing $300 million through their CPPIB Credit Investments Inc. - read more
ASIC Cracks Down on Risky Financial Influences ASIC Cracks Down on Risky Financial Influences
12 Jun 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has issued warnings to 18 social media influencers actively promoting high-risk financial products without the necessary licence. The move is part of a broader initiative to curb unlicensed financial advice in the online sphere, where influencers often lure young audiences with glamorous lifestyles while dispensing questionable investment tips. ASIC has identified these so-called 'finfluencers' as operating in breech of the Corporations Act by promoting complex financial products like derivatives without proper authorisation. - read more
ASIC Introduces 2-Year Fast-Track IPO Trial to Boost Market Appeal ASIC Introduces 2-Year Fast-Track IPO Trial to Boost Market Appeal
11 Jun 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has responded to stakeholder feedback by initiating a two-year trial of a fast-track process for Initial Public Offerings (IPOs). This initiative aims to address the decline in Australian IPOs and the number of public companies by making the IPO process more efficient. - read more
Intergenerational Wealth Transfer: A Prime Opportunity for Australian Advisers Intergenerational Wealth Transfer: A Prime Opportunity for Australian Advisers
11 Jun 2025: Paige Estritori

Recent findings from EY's Global Wealth Research report highlight a significant opportunity for financial advisers in Australia as a large-scale intergenerational wealth transfer looms. With only 35% of Australians planning to retain their inherited assets in their existing forms, there is a noticeable shift towards diversification, with 51% intending to spread their investments across various asset classes. This trend opens the door for advisers to engage deeply with new inheritors, ensuring client retention across generations. - read more
RBA Poised for July Rate Cut Amid Economic Slowdown RBA Poised for July Rate Cut Amid Economic Slowdown
11 Jun 2025: Paige Estritori

The Reserve Bank of Australia (RBA) is widely expected to cut the official cash rate (OCR) at its upcoming July meeting. According to Westpac, the probability of this decision has reached an overwhelming 97% in financial markets. - read more


Jet Ski Loans Articles

Your Ultimate Guide to Jetski Loans in Australia Your Ultimate Guide to Jetski Loans in Australia
Owning a jetski is a thrilling and liberating experience for many Australians. The beautiful coastlines and rivers offer the perfect backdrop for enjoying the freedom and excitement that a jetski provides. - read more
Understanding the Weather: Predicting Conditions for a Safe Jetski Experience Understanding the Weather: Predicting Conditions for a Safe Jetski Experience
Weather plays a pivotal role in almost all outdoor activities, but when it comes to jetskiing, it does more than just influence the level of enjoyment—it dictates the safety and viability of taking to the water. For enthusiasts of this thrilling water sport, knowing how to read and understand weather conditions is not just a skill, it's a necessity. - read more
The Top Jet Ski Brands in Australia: Which One Is Right for You? The Top Jet Ski Brands in Australia: Which One Is Right for You?
When it comes to purchasing a jet ski, choosing the right brand is crucial for ensuring a safe and enjoyable experience. There are various jet ski brands available in Australia, each with their unique features and specifications. - read more
Financial Tips for First-Time Jetski Buyers in Australia Financial Tips for First-Time Jetski Buyers in Australia
Buying your first jetski is an exciting venture, offering a unique combination of fun, thrill, and the freedom to explore Australia's beautiful waterways. However, it's crucial to make a well-informed purchase to ensure that your investment complements your lifestyle and financial circumstances. - read more
The Jet Ski Owner's Annual Checklist: Maintenance Edition The Jet Ski Owner's Annual Checklist: Maintenance Edition
Welcome to the world of jet skiing - an exhilarating sport where the splash of water and the thrill of speed combine to offer an unforgettable experience. As a jet ski owner, you know that there's nothing quite like the freedom of gliding over the waves on a sunny day. But to keep the excitement alive, there's an essential aspect we must always remember: the importance of annual jet ski maintenance. - read more
How to Choose the Right Financing for Your Jetski Purchase How to Choose the Right Financing for Your Jetski Purchase
Jetskis are quickly becoming a popular pastime in Australia, offering an exhilarating way to enjoy the sun and surf. The freedom and excitement they provide make them a must-have for many water enthusiasts. With their growing popularity, more Australians are turning to jetskis as their next big purchase. - read more
Understanding the Weather: Predicting Conditions for a Safe Jetski Experience Understanding the Weather: Predicting Conditions for a Safe Jetski Experience
Weather plays a pivotal role in almost all outdoor activities, but when it comes to jetskiing, it does more than just influence the level of enjoyment—it dictates the safety and viability of taking to the water. For enthusiasts of this thrilling water sport, knowing how to read and understand weather conditions is not just a skill, it's a necessity. - read more
Exploring Personal Loans vs. Dealership Financing for Jetskis Exploring Personal Loans vs. Dealership Financing for Jetskis
When considering the purchase of a jetski, two popular financing avenues stand out: personal loans and dealership financing. Each offers unique benefits and potential drawbacks, and understanding these options can help you make an informed decision. - read more
Your Guide to Quick Approval Jetski Loans Your Guide to Quick Approval Jetski Loans
Welcome to our guide on jetski loans! Whether you're a thrill-seeker or simply love spending time on the water, owning a jetski can be an exciting adventure. - read more
The Jet Ski Owner's Annual Checklist: Maintenance Edition The Jet Ski Owner's Annual Checklist: Maintenance Edition
Welcome to the world of jet skiing - an exhilarating sport where the splash of water and the thrill of speed combine to offer an unforgettable experience. As a jet ski owner, you know that there's nothing quite like the freedom of gliding over the waves on a sunny day. But to keep the excitement alive, there's an essential aspect we must always remember: the importance of annual jet ski maintenance. - read more


START HERE.

Loan Amount:
Postcode:

Knowledgebase
Revolving Credit:
A type of credit that does not have a fixed number of payments, in contrast to installment credit.


Quick Links: | Jetski Loan Rates | Jetski Loan Brokers | Jetski Loan Calculators | Jetski Loan Quote