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Speaker 1: Credit cards sur charges, no one likes them. The Commerce

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Speaker 1: Commission has decided to lower the cost of interchange fees

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Speaker 1: for Visa and Master cards. They reckon this will save

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Speaker 1: businesses around ninety million bucks a year, and that could

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Speaker 1: save each business five hundred dollars on average. Carolyn Young

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Speaker 1: is Retail and Z chief executive with me this afternoon.

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Speaker 2: Hi, Carolyn kider Ran, Thanks for having me on board.

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Speaker 1: So is this going to make a major difference to businesses?

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Speaker 2: Look, it's kind of too really to tailers and it

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Speaker 2: you know, what we really want to make sure that

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Speaker 2: we see is that we do see those lower fees

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Speaker 2: come through in the bank statements for retailers, and then

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Speaker 2: what consumers are going to want to see is that

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Speaker 2: we'll see lower surcharging to reflect that. So that would

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Speaker 2: be the one one opportunity for everyone. And the key

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Speaker 2: thing is how do we make sure that that's happening.

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Speaker 2: That's going to be the critical.

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Speaker 1: Factor, and we won't know. I guess the proof will

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Speaker 1: be in the pudding. But the fact that the ComCom

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Speaker 1: has already stepped back from because remember the last time

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Speaker 1: we spoke, it was two hundred and sixty million dollars

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Speaker 1: and save things. They were thinking, now we're at ninety

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Speaker 1: that presumably that's pressure from the industry.

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Speaker 2: Look when you look at the report they put out today,

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Speaker 2: there are some differences between what they had proposed in

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Speaker 2: their draft decision to where their final places position, and

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Speaker 2: so that's part of it. So they haven't addressed any

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Speaker 2: of the commercial credit card fees that's left uncapped and

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Speaker 2: that could be in that quite a high percentage of things.

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Speaker 2: And the international cards they some of those cards, the

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Speaker 2: debit cards for international fees they are still quite high.

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Speaker 2: So overall there's been a little bit of movement up,

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Speaker 2: so you know, less savings for the whole economy, so

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Speaker 2: for retailers and for consumers. And what we do need

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Speaker 2: to make sure is that this is one part of

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Speaker 2: the merchancy the fee. There's about five or six fees,

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Speaker 2: depending on how you've struck your payment portfolio, that make

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Speaker 2: up the merchant service fee. The COMMICS commissioners said they

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Speaker 2: want to get that fee down to one percent maximum.

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Speaker 2: Our recommendation to the COMMICS commission and our submissions was

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Speaker 2: that regulate the total fee, make it one percent, make

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Speaker 2: it really flat and easy for everyone. Then you can

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Speaker 2: just implement a standard to charge for it be a

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Speaker 2: maximum of one percent, and you know, everyone knows where

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Speaker 2: they stand because it's really really complicated.

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Speaker 1: And we would get that too, because at the moment,

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Speaker 1: some retailers are charging two and a half percent of

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Speaker 1: charges and more for what the ComCom has said that

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Speaker 1: should be a maximum of point zero point seven percent

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Speaker 1: debit card to charge retailers clipping the.

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Speaker 2: Ticket here or what. No, you're just talking about the

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Speaker 2: interchange fee, which is only one part of the merchant

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Speaker 2: service fee. So depending on the type of card that

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Speaker 2: you're that the customer is paying with, the bank that

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Speaker 2: they come from, who your payment system runs through, you know,

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Speaker 2: is it a master Card, is it a Visa? Is

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Speaker 2: it an NX overseas card? You know, all of those

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Speaker 2: factors all mean that it can be a different fee

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Speaker 2: that's supplied through. So debit is different to credit, and

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Speaker 2: it's different if it's MX versus master Card or Visa,

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Speaker 2: and it's different if it's an overseas card. So there's

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Speaker 2: lots of permeations that roll through. So understanding that whole

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Speaker 2: piece is super complicated, and what retailers and merchants really

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Speaker 2: want is a simplified system that everyone can understand. So

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Speaker 2: great clarity you reckon all will that'd be great, Like

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Speaker 2: we would all know that the total fee you might

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Speaker 2: be charged on average would be one percent. And therefore,

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Speaker 2: if a business wanted to put in place a surcharge,

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Speaker 2: they would know that was a seur charge that they

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Speaker 2: could put in place. Consumers would also they know that

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Speaker 2: that's all that they could be charged.

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Speaker 1: Appreciate your time. Carol and Young Retailing is the chief executive.

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Speaker 2: For more from Hither Duplessy Alan Drive. Listen live to

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Speaker 2: news talks.

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