Commonwealth Bank urges major changes to fees for millions of Aussies amid customer anger
The Commonwealth Bank of Australia has urged the Reserve Bank to scrap surcharges on debit and credit card payments, in a move that could save Australians thousands of dollars per year.
The Australian Financial Review first published details of the submission on Friday, ahead of it being made public.
Australians spend about $1 billion in surcharges every year, according to consumer research firm Canstar.
Sign up to The Nightly's newsletters.
Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.
By continuing you agree to our Terms and Privacy Policy.The Reserve Bank is currently evaluating the surcharges to ensure the fairness of the system.
The Albanese government is already in favour of scrapping surcharges on debit payments, which Treasurer Jim Chalmers said would happen pending the release of the RBA’s report.
The Commonwealth Bank is saying that should extend to credit card users.
Mastercard took the same position as CBA in its submissions to the RBA.
On Friday, reporter Rosanna Kingsun explained the changes on Sunrise.
“The Reserve Bank has been reviewing the payment system to ensure it’s fair and fit for purpose,” Kingsun said.
“Subject to that review, the government has promised to scrap debit card charges by end of the year.
“The Commonwealth Bank is expected to say in its submission to the RBA that the simplest solution is to get rid of all card surcharges.
“Other banks, however, don’t support extending a ban to credit cards. Small businesses want card charges scrapped altogether, arguing if they are banned the fee will simply be embedded in prices.
“The Treasurer has said he wants to ensure there aren’t unintended consequences for business while ensuring customers aren’t punished for using digital payments.”
In December, CBA backflipped on a planned $3 assisted withdrawal fee that would have been linked to Smart Access accounts to which Complete Access customers would have been automatically transitioned.
“Clearly we’ve done a poor job of communicating aspects of this change for our customers,” CommBank executive Angus Sullivan said at the time.
“We know that changes are difficult, especially at this time of year.”
Originally published on Sunrise
