Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
Seniors could benefit from RBA, ACCC probes into card payments
Senior Australians could be a big winner if a Reserve Bank of Australia (RBA) review of merchants’ card payment costs and surcharging recommends abolishing fees on debit card transactions.
The retail payments regulation review, which is calling for submissions by December 3, 2024, will examine whether the RBA can do more to put downward pressure on merchant card payment costs and whether the surcharging framework remains fit for purpose – an initiative welcomed by seniors’ advocacy groups.
National Seniors Australia (NSA), citing RBA research, says Australians are out of pocket to the tune of nearly $1 billion a year in surcharges when they pay with their cards instead of cash.
Chris Grice, NSA chief executive officer, says this analysis shouldn’t surprise seniors who are especially sensitive to additional charges being levied by smaller businesses such as cafes and restaurants.
“Surcharges of up to two per cent are not uncommon and that can amount to paying extra hundreds of dollars over a year, just by using a credit or debit card.
“According to the RBA’s analysis – and this is especially annoying – we should be paying less for using a debit/EFTPOS card than a credit card, but merchants appear to be charging the same percentage surcharge no matter what the card or device function used. As cash fades from use, some businesses are refusing to accept it and then applying the surcharge for using a card. What choice is there?”
In the US and Europe, card surcharges are banned, and the NSA would want a similar outcome in the wake of the RBA review.
In a related move, the Federal Government has instructed the Australian Competition and Consumer Commission (ACCC) to investigate illegal and unfair surcharging practices, allocating the consumer watchdog $2.1 million for the task.
Labor Treasurer Jim Chalmers said the measures were designed to get a better deal for consumers, reduce costs for small businesses and promote a more competitive payments system.
COTA Australia, a leading advocacy organisation for older Australians, said removing fees attached to using a debit card for transactions would be welcomed by seniors struggling with the increasing difficulties associated with paying with cash for goods.
Welcoming the announcement that the ACCC will receive funding to tackle excessive surcharges, as well as the RBA’s review, chief executive officer Patricia Sparrow (pictured) says giving older Australians access to a digital cash solution that isn’t eaten up by fees is crucial.
“Being charged additional fees is a bugbear for many older people concerned about the increasing removal of cash as a payment option.
“As it becomes harder to pay with cash, people are being left with no option but to pay for goods in a way that involves additional charges. Removing fees attached to debit cards is a long overdue reform that would be very welcomed.”
While giving older Australians the option to still make cash payments, it’s also critical that they have access to another fee free payment solution.
“We welcome the Federal Government exploring this option and look forward to ensuring the voices of older people are heard throughout the investigation and consultation period.”
