Big News! The Reserve Bank of Australia (RBA) has proposed sweeping reforms to eliminate excessive payment fees, potentially saving Australians millions.

#1: These Extra Charges Could Soon Be Gone

The RBA’s new three-part reform plan targets unfair payment fees, impacting consumers, businesses, and major banks.

Key Changes:

Ban on Surcharges – No more extra fees on debit/credit card transactions (eftpos, Mastercard, Visa). If passed, this could save consumers $1.2 billion annually—far exceeding the Albanese government’s initial push to only ban debit card surcharges.

Transparency for Hidden Fees – Banks must disclose previously hidden charges to retailers.

Lower Interchange Fees – Reducing fees between merchants and banks could save businesses another $1.2 billion per year, benefiting 90% of Australian businesses.

Banks Push Back – Major banks (except Commonwealth Bank) oppose the reforms, arguing these fees fund fraud protection and chargeback rights.

#2: RBA’s Final Plan Coming by Year-End

RBA Governor Michele Bullock says these reforms aim to cut inefficiencies in payment systems. A consultation period runs until August 26, with final rules expected by July 1 next year.

Bullock’s Statement:
"We know these changes will spark debate, especially among fee-charging businesses. Our goal is a more competitive, efficient, and secure payment system for all."

What’s Next?
The economic impact of these reforms remains to be seen—stay tuned for updates! (Source: 9News)