By Aimee Chanthadavong
A review is currently being undertaken by the Reserve Bank of Australia (RBA) to decide on how to create a level playing field in the eftpos market.
Speaking to RetailBiz, Jost Stollmann, CEO of independent eftpos solutions provider Tyro, highlighted that while the current system is effective it will soon be tarnished if Eftpos Payment Australia Limited (EPAL) continues to urge the RBA to increase eftpos fees.
“It’s currently a working system so in order for the domestic market to compete against Visa and Mastercard, the RBA has created EPAL who are suppose to make the local market more competitive but the board of EPAL is made up of all the major banks, Coles and Wooloworths,” he said.
“So, we as Tyro, is the only organisation that has the SMEs interest. There is no reason why the banks should revert and increase the interchange fee. Every cent of increase translates into additional revenues of approximately $20 million for the issuing banks.”
According to Stollmann, EPAL board members are made up of representatives of four banks – Commonwealth Banks, National Australia Bank, ANZ, Bendigo Adelaide Bank – indicating that the decisions being made for the eftpos market are bias.
“The general retailing side is not represented in the decision to raise eftpos fees, which I find strange. What I find even stranger is that there is no noise around it,” he said.
“There should not be an interchange fee for the rest of the retailers because that would give an advantage to Coles and Woolworths that are already receiving discounted fees on."
Stollman said if the interchange fees are raised, SMEs will have three options – to carry to costs, to pass the cost on to customers or not offer eftpos as a payment option on low-ticketed items.
“We’re inviting the retail world to get engage and raise their voice to maintain this cost efficient system.”