Taken For A Ride?
Reviewing The Reserve Bank’s Surcharging Reforms
In this briefing, we examine the likely implications of the Reserve Bank of Australia’s reforms to card surcharging practices. Difficulties applying the new regulatory Standard to taxis provides a useful illustration of why such measures are not likely to be effective in lowering surcharges for consumers.
July 2014 update: In late 2013, the Victorian Government legislated to reduce the surcharge able to be levied by suppliers of taxi payment services to a maximum of 5 per cent of the fare, to be reviewed by the Essential Services Commission. The reductions came into force in February 2014. The NSW Government has also announced its intention to legislate later in 2014 to reduce surcharges to 5 per cent.