RBA Concedes Cost Transfer to Hospitality Sector Following Industry Input
What happened
The Reserve Bank of Australia conceded that the costs associated with credit card transactions must be transferred across the board, following input from the Australian Hotels Association. Retailers have been raising prices on various goods to cover cost increases, including the national ban on credit card surcharges. Previously, these surcharges could add up to 1.7 per cent extra to a card-paid purchase.
From stockandland.com.au
Why it matters
The mandate requires merchants to absorb card processing fees, which the Australian Hotels Association stated must ultimately be carried by the consumer. For a regional town hotel, card transaction costs could add between $30,000 and $60,000 annually, according to Stephen Ferguson.
From stockandland.com.au
Who's involved
- Australian Hotels AssociationThe Australian Hotels Association provided input regarding the cost transfer.
- RBAThe RBA made the concession regarding cost transfer.
- Stephen FergusonStephen Ferguson is the chief executive officer of the Australian Hotels Association.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Australian Hotels AssociationSpeculative
The Australian Hotels Association might see increased operating costs due to the mandate forcing members to absorb card processing fees.
- American ExpressSpeculative
American Express could face changes in revenue streams as the RBA ban prohibits payment processors from recovering fees.
- MastercardSpeculative
Mastercard could face changes in revenue streams as the RBA ban prohibits payment processors from recovering fees.
- StripeSpeculative
Stripe could face changes in revenue streams as the RBA mandate prohibits payment schemes from recovering fees on transactions.
Keep exploring
The entities involved
-
Australian Hotels Association
organization
Nothing else this week.
-
RBA
Spanish media enterprise