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Aussies' cash back option could check out

March 26, 2006

Herald Sun:Australian shoppers could lose the convenience of cash back at the POS in retail stores if the Reserve Bank goes ahead with cutting interchange fees. The Australian Merchant Payments Forum warned the potential crunching of the fee paid by banks to retailers might make it unprofitable for retailers to continue with handing out up to $10 billion (U.S. $7 billion)a year to customers. That would strain Australia's ATM network and spur inefficiencies, the lobbyists claim. Taking cash out at the POS can cause excess transaction fees.

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Read also, Visa, ABA urge regulators to reform interchange rules.