Media Release Payments System Board Consultation on Replacing the eftpos Designation

The Reserve Bank of Australia announced in September 2011 that it would undertake a review of the regulatory framework for the eftpos payment system in light of developments in that system over recent years. The Bank is now launching the first public phase of the review – a consultation on the possible form of a new designation for the eftpos system. A consultation on other elements of the regulatory framework for the eftpos system will follow later in the year.

The Payment Systems (Regulation) Act 1998 requires that the Reserve Bank designate a payment system, in order to bring it under the Bank's regulatory control, before it can determine a standard or impose an access regime for that system. The eftpos system was designated by the Bank in 2004. In 2006, the Bank imposed a standard, The Setting of Interchange Fees in the EFTPOS System and an access regime, Access Regime for the EFTPOS System. Since then, the eftpos system has changed significantly, most notably with the establishment of a governing scheme (eftpos Payments Australia Limited (ePAL)) in 2009 and ePAL's recent decision to introduce a common multilateral interchange fee schedule. In light of these developments, the Bank intends to conduct a public consultation on whether changes to the existing Standard and Access Regime are appropriate. Before it does so, the Bank is first determining the appropriate form of designation for the system, to reflect the new structure of the system.

A short paper outlines possible approaches to designation of the eftpos system.

Formal written submissions by no later than 20 April 2012 are welcome and should be sent to:

Head of Payments Policy Department
Reserve Bank of Australia
GPO Box 3947
SYDNEY  NSW  2001

or

pysubmissions@rba.gov.au

All submissions will be posted on the Reserve Bank's website and those making submissions will be provided with an opportunity to discuss their submission with Reserve Bank staff.