Credit card use smashed by regulation
News from Sydney Morning Herald:

Back in 2001 over 70 per cent of the value of payment card transactions was by credit card, according to Reserve Bank of Australia data.

More recently that percentage has dropped to 60 per cent to the chagrin of most Australian banks and the credit card schemes.

So what caused the change, and has it been a change for good?

The short answer to the first part of this question is two pieces of RBA regulation.

No-surcharge rule

The first regulation involved the removal of the no-surcharge rule, which said that merchants weren’t allowed to charge credit card users a higher price than customers who paid with cash or debit.

The second piece of RBA regulation was an enforced reduction in the interchange fee. This is a fee paid by one bank to another when a credit card is used.

The bank that is doing the paying is the acquiring bank, or the bank of the merchant, while the bank that is paid the fee is the cardholder’s bank, the issuer.

Before the RBA’s regulations, the elevated interchange fee combined with the no-surcharge rule created a decade-long prosperity in credit card take-up and usage. This is how they worked together.

Merchant service fees

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Police: Attempt to use stolen credit card was ‘comedy of errors’
News from Lancaster Newspapers:

An employee at an area convenience store immediately recognized the credit card that a young man handed to her early Tuesday.

The clerk was familiar with the name on the card, and for good reason: It was her mother’s.

She also recognized the young man. The two had attended the same school, she would later tell police.

Thus began a “comedy of errors” that would lead to charges against the teenage store patron.

After trying unsuccessfully to use a credit card to pump gas at the Turkey Hill at 1503 Columbia Ave. around 1 a.m., the young man was instructed to see the store’s clerk, according to Manor Township police.

Examining the card, the clerk quickly determined it was her mother’s, according to police.

Police said the employee confronted the man, who tried to give her an excuse about why he had the card. The clerk called police as the man fled.

Investigators said the employee told them that she had attended school with the man, and she identified him as Joshua Devonshire.

Soon after, officers responded to the home of the clerk’s mother in the Pheasant Ridge development, which is about a quarter-mile away from the Turkey Hill.

The woman told police that, after her daughter notified her about the stolen card, she went to check her vehicle and saw a man near her car. She said the man, later identified as Devon…………… continues on Lancaster Newspapers

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