The ACCC is discussing the joint setting of interchange fees with financial institutions. And the Australian Securities and Investments Commission is reviewing ATM charges as part of an updating of the electronic funds transfer code of conduct. Earlier in the year it was reported that 22 cents in every dollar the banks earn comes from fees. Banks are in the business of making money, but it is hard on consumers to be charged excessively for the use of a service for which there is little alternative. The National Australia Bank, which appeared in court yesterday with the ACCC over interchange fees, has argued that capital and infrastructure were required to build up the credit-card network and that the fees reflect that initial investment.
Banks are already far from being beloved by the community.
The most recent report, which exposes them as taking advantage of the lack of competition in the industry, will further diminish their standing. The report recommends that banks not be overcompensated for their costs and that the system be reviewed regularly. It is the very least that should be expected in response to such excessive profits. The Age Company Ltd 2000. Any unauthorised use, copying or mirroring is prohibited.