Interchange Fee Principles

ePAL believes that interchange fees should be set in a way that is transparent and reflects the interests of all stakeholders.  Accordingly on 20 September 2010 it adopted the following interchange fee principles:

Principle 1 – Compliance with the Standard
The Company's interchange fee regime will comply with the terms and spirit of the eftpos Interchange Fee Standard published by the RBA.
 
Principle 2 – Competitive Positioning and success of eftpos
The Company's interchange fee regime will further the competitive position and success of eftpos and, in particular, it will:

1. promote usage, issuance and acceptance of eftpos;
2. take into consideration the competitive landscape to ensure eftpos is not placed at an economic disadvantage to other payment products; and
3. strive to achieve:
1. net costs of acceptance that are below competitive products for all merchants;
2. net costs of issuance that are below competitive products for all issuers; and
3. an environment that encourages innovation, efficiency and investment in eftpos.
4. review its interchange fee regime at regular intervals (at least annually) in light of relevant developments.

Principle 3 – Simplicity and Transparency
The Company's interchange fee regime will be simple and transparent in terms of both process and output.
 
Principle 4 – Fairness
The Company's interchange fee regime will be fair and balance the long term needs of the Company.
 
Principle 5 – Governance and Consultation

1. In developing its interchange fee regime the Company will consult with all Members in an open and transparent manner. 
2. The success of eftpos as a whole will be the paramount consideration in the Company's deliberations.