Defined Terms and Documents       

Payment Systems means as explained in Credit Card Payment Schemes according to the "Murray Financial System Enquiry - Payments Sector" networks that enable individuals, businesses, banks and other financial system participants to make and receive payments.  Payment Systems also include Automatic Teller Machine (ATM) networks, cheques and BPAY.  However, submissions do not focus on them from a competition perspective.  The Inquiry would welcome views on whether there are competition issues with these systems or any other parts of the payments sector.

"The ‘payments system’ refers to arrangements which allow consumers, businesses and other organisations to transfer funds usually held in an account at a financial institution to one another. It includes the payment instruments – cash, cards, cheques and electronic funds transfers which customers use to make payments – and the usually unseen arrangements that ensure that funds move from accounts at one financial institution to another."

"The ACCC remains committed to promoting reform of the operation of the credit card schemes in Australia and believes that action by the Reserve Bank could achieve this much needed reform in the most timely and effective manner. Under the Memorandum of Understanding between the ACCC and the Reserve Bank, the ACCC would be closely consulted in any action the Reserve Bank takes to promote reform of the payments system".

The ACCC and the Reserve Bank both have legislative responsibilities for access and competition policy in the payments system. The ACCC has a longstanding role in the Australian payments system as part of its general responsibilities under the Trade Practices Act 1974. In relation to payment systems, for example, a number of arrangements between the banks are subject to the ACCC's scrutiny because they involve agreements between competitors. Following the recommendations of the Wallis inquiry, the Reserve Bank has been given new powers to regulate the payments system to promote competition and efficiency.

The ACCC supported the Reserve Bank having legislative powers in this area when the Wallis inquiry was held and, in accordance with a subsequent Memorandum of Understanding, the ACCC and the Reserve Bank work closely together to ensure that a consistent approach is taken to regulatory policy in the payments system to promote competition and access in this important sector of the economy."

Australia's Principal Regulator of the Payments System

Payments Systems Board  or  PSB