Retailers in Australia have reacted angrily to a court decision to uphold the authority of the Reserve Bank over the Eftpos payments system, which they say will cost consumers A$170 million a year.
A Federal Court ruling has concluded that Australia’s Reserve Bank is lawfully the appropriate body to regulate the Eftpos payments system. Australian retailers say that, as a result of the court’s verdict, costs for running the scheme are expected to be passed to retailers as banks look to recoup enforced reductions on transaction fees from stores.
Justice Mark Weinberg denied an application by the Australian Retailers Association to review a Reserve Bank decision to designate the Eftpos system, allowing the Reserve Bank to set standards for its use, the Age newspaper has reported.
Responding to the court decision, The Australian Merchant Payments Forum, a coalition of retailers, has cautioned that it could allow banks to pass on Eftpos transaction costs to retailers, ultimately resulting in higher prices for end consumers or a cut back in services.
Meanwhile, the Australian Banking Association has welcomed the decision while accusing retailers of attempting to stand in the way of reform and trying to monopolize the benefits of Eftpos.