Better credit card deals on way
LOWER credit card interest rates could become a reality under a proposal to increase competition in the sector by expanding the number of companies that can issue cards or process card transactions for retailers.
Currently only registered banks or specialist credit card institutions can issue credit cards or accept credit card transactions on behalf of retailers.
Federal Finance Minister Mathias Cormann said the changes would encourage new participants, drive product innovation and encourage better use of technology.
“The new regime will include safeguards to en- sure that any new entrants are financially sound institutions that do not add unacceptable risks to the financial system. This change strikes the right balance between stability and competition and aligns with recommendations from the Reserve Bank of Australia’s review into Australia’s Card Access Regime in March this year.”