Regulation Of Payments Surcharging

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Treasury released internal correspondence and a ministerial submission (March 2024) discussing regulation of payments surcharging, particularly least cost routing (LCR) policy. Documents include RBA meeting notes and ministerial brief to the Treasurer and financial services ministers. Key findings: ABC media reported consumers losing around $1 billion annually in surcharges; hospitality sectors surcharge 15-20% of transactions; Treasury received increased ministerial correspondence about high merchant service fees and lack of fee-free cash access. RBA and Treasury discussed the relationship between optimal interchange laws and surcharge necessity, noting surcharging wouldn't be needed if merchants could price different payment methods via discounts. Small Business Ombudsman and COSBOA have advocated LCR mandate for years.