Proposed Credit Card User Pays Purchase Fee

Proposed User Pays Credit Card Purchase Fee Structure and Annual Purchase Fee Revenue

(a) A Fixed Cost Purchase Fee of 10 cents per Credit Card Purchase; and

(b) Variable Cost Purchase Fee of half of 1% of each dollar of each Purchase.

No Annual Fee or Lost Card Fee.

The Proposed User Pays Fee calculation is a veritable Pimple on the backside of an elephant for Credit Cardholders enjoying the Three Purchase Benefits Of 'Tap And Go' in particular A Line/s of Credit because Purchasers do not pay for those ‘goods and services’ for between 45 and 55 days later.

A $30 Purchase would incur a 25 cents User Pays Fee.

A $50 Purchase would incur a 35 cents User Pays Fee.

A $100 Purchase would incur a 60 cents User Pays Fee.

A $200 Purchase would incur a $1.10 User Pays Fee.

The aggregate monthly User Pays Purchase Fee would be calculated and tabulated on the Monthly Credit Card Statement.

Average Credit Card Purchase is $108.83

Number of Credit/Charge Card Purchase transactions annually- Oct 21 - Sept '22 was 3,295,731,984

Estimated average Purchase amount of 'smallest one third' of Purchases is $25 (golf green fees, cafe meal, Bunnings hardware, chemist script, carton of beer)

Estimated average Purchase amount of 'middle one third' of Purchases is $85 (weekly family groceries, filling up the petrol tank)

Estimated average Purchase amount of 'largest one third' of Purchases is $165 (Seeking Reward Points - buying airline ticket, new fridge, TV etc, council rates etc, doctor or dentist bill, car insurance/Green Slip/registration)

Calculations in the below table are listed in worksheet CreditCardsSummayData' in Excel file CreditCardsSummayData.xlsx

Variable fee revenue for 'smallest one third' of 3,295,731,984 Purchases @ $25 per Purchase @ 0.50% (½ of 1%)
Fixed fee revenue for 'smallest one third' of 3,295,731,984 Purchases @ $25 per Purchase @ 0.10%
Variable fee revenue for 'smallest one third' of 3,295,731,984 Purchases @ $85 per Purchase @ 0.50%
Fixed fee revenue for 'smallest one third' of 3,295,731,984 Purchases @ $85 per Purchase @ 0.10%
Variable fee revenue for 'smallest one third' of 3,295,731,984 Purchases @ $165 per Purchase @ 0.50%
Fixed fee revenue for 'smallest one third' of 3,295,731,984 Purchases @ $165 per Purchase @ 0.10%

$137,320,793

$109,856,634

$466,890,695

$109,856,634

$906,317.232

$109,856,634

Forecast Annual Credit Card User Pays 'Purchase Fee Revenue'

$1,840,098,622

Credit Cardholders with only Level 1 and Level 2 Financial Literacy Capacity have for too long carried the burden of paying for the provision of Credit Card Products in Australia. They can now get a Fair Go - as proclaimed by five former Prime Ministers in THE CONVERSATION article "In Australia, land of the ‘fair go’, not everyone gets an equal slice of the pie".

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