The ACCC has a longstanding role in the Australian payments system. Payment systems often rely on co-operative arrangements between participants that are otherwise competitors; such arrangements therefore have the potential to contravene the provisions of the Competition and Consumer Act 2010 (formerly the Trade Practices Act 1974). However, if the ACCC judges the arrangements as being, on balance, in the public interest, it may authorise them. Over recent years the ACCC has authorised a number of such arrangements, particularly those operated by the Australian Payments Clearing Association (APCA) for cheque-clearing, direct entry, debit cards and high-value transactions. With the enactment of the Payment Systems (Regulation) Act 1998, there is an onus on the Reserve Bank and the ACCC to take a consistent approach to policies on access and competition in the payments system. This has been facilitated through an ACCC and RBA Memorandum of Understanding (MOU) signed in September 1998. The MOU makes it clear that:

• the ACCC is responsible for ensuring that payments system arrangements comply with the competition and access provisions of the Competition and Consumer Act 2010, in the absence of any specific Reserve Bank initiatives. Under its adjudication role, the ACCC may grant immunity from court action for certain anti-competitive practices, if it is satisfied that such practices are in the public interest. It may also accept undertakings in respect of third-party access to essential facilities; and

• if the Reserve Bank, after public consultation, uses its powers to impose an access regime and/or set standards for a particular payment system, participants in that system will not be at risk under the Competition and Consumer Act 2010 by complying with the Bank's requirements.

The effect is that the ACCC retains responsibility for competition and access in a payment system, unless the Bank designates that system and follows up by imposing an access regime and/or setting standards for it. If the Bank does so, its requirements are paramount. Designation does not, by itself, remove a system from the ACCC's coverage.

In terms of the MOU, Reserve Bank and ACCC staff are in close contact on relevant matters. The Governor and the Chairman of the ACCC also meet at least once a year to discuss issues of mutual interest in the payments system.