The notoriously complex area of retail payment costs is in the political spotlight, and set to force a response from the central bank. Here’s how it works.
In the main committee room of Parliament House, Labor MP Jerome Laxale held up a crumpled $5 polymer banknote. Why, he asked the bosses of Australia’s major banks, if he paid for the same cup of coffee with his debit card did it cost $5.08?
He produced a debit card with the inflated price taped to its front to ram home the apparent injustice, like a referee wielding a red card.
James EyersSenior ReporterJames Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
