Reserve Bank of Australia's payments system board has decided to review its 2002 reforms to Australia's credit and debit card systems, after analyzing September 2006 submissions from interested parties on the content of the review and how it might best be undertaken.
The board has decided that the review, which will also look at interchange fees and access arrangements in other payment systems, in addition to credit and debit cards, should be open and transparent.
The bank stated that it instigated the initial reforms with the aim of improving the efficiency of the overall payments system. It now wishes to examine the development of the payments system over recent years, as well as the implications for competition and efficiency, so as to assess whether the various standards and access regimes remain appropriate.
The bank has revealed that, in early 2007, as a background to the review, it will carry out two substantial pieces of research with the help of a range of industry participants. The first will look at the resource costs involved in different methods of payment, including cash, and the second will study how various payment methods are used in different circumstances, including the potential for substitutability between various forms of payment.
The bank has said that it will confer with industry representatives during all stages of the review, including a 2007 payments system conference through which interested parties can discuss the planned review with the bank.
Reserve Bank of Australia is hoping to release the preliminary conclusions of the review in the first half of 2007 before consulting the industry on any proposed changes. It hopes to have completed the entire review process, including any changes to the current standards and access regimes, by late 2008.