Visa welcomes Reserve Bank of Australia consultation

10/18/2024

  • While businesses are permitted to surcharge under current Australian regulations, Visa does not support the practice.
  • As a payments network, Visa does not set fees for businesses or consumers.
  • Investment to advance payments technology and infrastructure delivers the quick, easy and secure transactions that Australians expect today, which also helps businesses and the economy to grow.

 

Visa has welcomed the consideration of reform by the Australian Government and Reserve Bank of Australia (RBA) regarding surcharging on digital payments.

Visa’s Group Country Manager for Australia, New Zealand and South Pacific, Alan Machet says, “While businesses are permitted under Australian regulations to add a surcharge for card payments, Visa does not support the practice.

“Australian consumers should not be penalised for choosing to pay in a manner that is a fast, seamless and secure experience for all parties. We think that to avoid imposing a surcharge on card payments is the most simple, economically efficient, and consumer-friendly approach. We welcome ongoing collaboration with Government, the RBA, and industry on a fit-for-purpose solution.”

A recent study by YouGov suggests nearly all Australians (93 per cent) view surcharges as hidden costs that should be included in the displayed price.1


Investment that powers business and economic growth

With the RBA having commenced its Review of Retail Payments Regulation, Visa highlights the importance of continuous innovation in the digital payments ecosystem to power Australian businesses and the broader economy.

“In a rapidly changing landscape, Australians – businesses and consumers – expect transactions to be quick, easy, and secure. This is made possible by ongoing investment to advance payments technology.”

While the flow of digital payments may seem invisible, it requires substantial investment for operational efficiency, innovation, and futureproofing; just as cash transactions also carry hidden costs, which have been deeply embedded in traditional commerce over centuries.

Digital payments empower Australian businesses by simplifying back-end processes, unlocking access to online and international markets, and providing secure payment solutions that protect transactions however their customers choose to transact, in person or online. For example, Tap to Phone technology allows small and micro businesses to transform their mobile phones into payment terminals without the cost of additional hardware.

Mr Machet comments, “Payments has changed more in the past five years than the previous 50. Ultimately, restricting the capacity for further investment could hinder the ability to deliver on customer expectations, and reduce competition, productivity and innovation in the long run. Australians have been early adopters of new payment technologies, driving efficiencies and growth for businesses and the wider economy. Continued investment ensures Australia’s position as a trusted digital economy and payments leader.”


Protecting consumers and businesses is front of mind

In analysing the threat landscape, and as cybercrime becomes increasingly sophisticated — amplified by access to Generative AI tools — Australian businesses and consumers face heightened risks, underscoring the need for ongoing investment in advanced security measures.

Over the past five years, Visa has invested more than A$14 billion globally in technology and innovation to combat fraud and enhance network security. Our AI-driven solutions have successfully prevented A$700 million in fraud from impacting Australian businesses in just one year.


A considered approach to ensure a balanced outcome

Mr Machet concludes, “As a payments network, Visa does not set fees for businesses or consumers and scheme fees are just one component of the Merchant Service Fees that a business pays to their bank or provider. To this end, the effect of redistributing the cost of payments needs to be very carefully considered.

“This is not as simple as reducing costs on one side of the market and expecting the net effect to equal that reduction. As such, any significant policy changes should be balanced by economic and market impact assessments.”

 

1 YouGov (2024) research commissioned by Visa and conducted online in August 2024. Based on a survey of 1,011 respondents aged between 18-75 years.

 

About Visa Inc.

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.