Interchange Principles and Fees

Discover the most important information about interchange fees. Learn more about their purpose, rates and principles.

Interchange Principles and Fees

Interchange Fee Principles 

eftpos 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; and
  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.

Interchange Rates

Interchange Fees are payable between the retailer (known as a self-Acquirer) or the retailers’ financial institution (known as the Acquirer) and the cardholder’s bank or financial institution (known as the Issuer).

These rates:

• Create a simple regime to underpin and strengthen eftpos’ competitiveness, and

• Support investment in key enhancements to eftpos products.

The rates support initiatives designed to:

• Increase eftpos functionality, and

• Enhance digital payments security.

Schedule of Interchange Rates

The following Multilateral Interchange rates are prescribed by eftpos pursuant to Clause 33 of the Scheme Rules from 1 November 2020.

Interchange Category Name

eftpos Prop (Ex GST)

eftpos Priority 2 (previously MN*) (Ex GST)

eftpos Priority 1 (Ex GST)

Definition

Charity

$0.000

$0.000

$0.000

All transactions performed at a Merchant that is endorsed by the Australian Taxation Office as a charitable fund, Charitable Institution of Public Benevolent Fund.

Medicare Easyclaim Refund

$0.000

$0.000

$0.000

All Medicare Easyclaim Refund transactions.

Package Rate Categories

  • Gold
  • Silver

N/A

N/A

$0.020

$0.030

N/A

N/A

Available for Purchase transactions at point of sale at Merchants or Merchant Groups that eftpos considers meet package criteria as determined by eftpos from time to time.

Differential Rate Categories

  • DIFR Category 1
  • DIFR Category 2
  • DIFR Category 3
  • DIFR Category 4

$0.015

$0.030

$0.045

$0.060

$0.010

$0.020

$0.030

$0.040

$0.020

$0.040

$0.060

$0.080

Available for Purchase transactions at point of sale or for eftpos Digital using an eftpos Form Factors at Merchants or Merchant Groups that eftpos considers meet performance criteria as determined by eftpos from time to time.

Other Categories

  • In Store
  • Digital

$0.110

$0.150

$0.040

$0.150

$0.150

$0.150

Available for Purchase transactions performed at Other categories which aren’t assigned a DIFR or Package category.

Purchase with Cashout

  • DIFR Category 1- Cashout
  • DIFR Category 2 - Cashout
  • DIFR Category 1 & 2 - Purchase
  • Standard – Cashout
  • Standard - Purchase

-$0.200

-$0.165

$0.020

$0.000

$0.020

-$0.200

-$0.165

$0.020

$0.000

$0.020

-$0.200

-$0.165

$0.020

$0.000

$0.020

Available for combined Purchase with Cashout transactions

Cashout Only

  • DIFR Category 1
  • DIFR Category 2- Standard

- $0.165-

$0.100

$0.000

- $0.165

-$0.100

$0.000

- $0.165

-$0.100

$0.000

Available for Cashout Only transactions

Transfers

$0.045

$0.045

$0.045

Available for Withdrawal/ Desposit transactions used to debit/ credit funds from/ to the account of an eftpos Consumer, other than in the process of performing a Cashout, Purchase, Purchase with Cashout or returning good or services

Interchange Category Name
Charity
Medicare Easyclaim Refund

Package Rate Categories

  • Gold
  • Silver

Differential Rate Categories

  • DIFR Category 1
  • DIFR Category 2
  • DIFR Category 3
  • DIFR Category 4
Other Categories
  • In Store
  • Digital
Purchase with Cashout
  • DIFR Category 1- Cashout
  • DIFR Category 2 - Cashout
  • DIFR Category 1 & 2 - Purchase
  • Standard – Cashout
  • Standard - Purchase
Cashout Only
  • DIFR Category 1
  • DIFR Category 2- Standard
Transfers
eftpos Prop (Ex GST) $0.000 $0.000

N/A

N/A

$0.015

$0.030

$0.045

$0.060

$0.110

$0.150

-$0.200

-$0.165

$0.020

$0.000

$0.020

- $0.165-

$0.100

$0.000

$0.045
eftpos Priority 2 (previously MN*) (Ex GST) $0.000 $0.000

$0.020

$0.030

$0.010

$0.020

$0.030

$0.040

$0.040

$0.150

-$0.200

-$0.165

$0.020

$0.000

$0.020

- $0.165

-$0.100

$0.000

$0.045
eftpos Priority 1 (Ex GST) $0.000 $0.000

N/A

N/A

$0.020

$0.040

$0.060

$0.080

$0.150

$0.150

-$0.200

-$0.165

$0.020

$0.000

$0.020

- $0.165

-$0.100

$0.000

$0.045
Definition All transactions performed at a Merchant that is endorsed by the Australian Taxation Office as a charitable fund, Charitable Institution of Public Benevolent Fund. All Medicare Easyclaim Refund transactions. Available for Purchase transactions at point of sale at Merchants or Merchant Groups that eftpos considers meet package criteria as determined by eftpos from time to time. Available for Purchase transactions at point of sale or for eftpos Digital using an eftpos Form Factors at Merchants or Merchant Groups that eftpos considers meet performance criteria as determined by eftpos from time to time. Available for Purchase transactions performed at Other categories which aren’t assigned a DIFR or Package category. Available for combined Purchase with Cashout transactions Available for Cashout Only transactions Available for Withdrawal/ Desposit transactions used to debit/ credit funds from/ to the account of an eftpos Consumer, other than in the process of performing a Cashout, Purchase, Purchase with Cashout or returning good or services

Notes:

Capitalised terms used in the definitions are defined in the eftpos Scheme Rules if not listed below.

Interchange Fees are not payable for Refunds and Declines.

Electronic and Paper Fallback transactions attract an Interchange Fee at the applicable Purchase rate.

Digital transaction – A transaction performed using a Merchant website or mobile application, rather than a POS terminal.

Purchase transaction – Within the Differential Rate categories, Purchase transaction refers to all channels including Transfer transactions and card types.

Cashout – has the meaning in the rules and for clarity is a transaction where the cardholder receives cash (Australian notes or coins) from a merchant, either as a standalone transaction, or combined with the purchase of goods or services.

*- MN has the meaning of a multi-network card.