Document ID: chunk:federal_register_of_legislation:F2016C00855:body:0:p2
Version: federal_register_of_legislation:F2016C00855
Segment Type: other
Provision Reference: 
Character Range: 2725–6002

between an issuer and an acquirer, directly or indirectly, in relation to a Visa Debit card transaction.

         5.                                          Each participant in the Visa Debit system must do all things necessary on its part to ensure compliance with this Standard.

         6.                                          If any part of this Standard is invalid, the Standard is ineffective only to the extent of such part without invalidating the remaining parts of this Standard.

         7.                                          This Standard is to be interpreted:

              * in accordance with its objective; and

              * by looking beyond form to substance.

         8.                                          This Standard comes into force on the date on which it is published in the Gazette.

Information

         9.                                          The administrator of the Visa Debit system must provide to the Reserve Bank of Australia data on the number and value of Visa Debit card transactions in Australia in the reference year, if such data are available. In the event that such data are unavailable, the administrator must provide information on the number and value of Visa Debit card transactions in Australia that were processed by the Visa system in the reference year.

Interchange Fees

         10.                                      From 1 November 2006, on each of the dates specified in paragraph 11, the weighted average of interchange fees implemented in the Visa Debit system in Australia must not exceed the benchmark calculated in accordance with paragraphs 13 and 14 below.

         11.                                      For the purposes of paragraph 10, the dates are:

            (i)            1 November 2006 and 1 November of each third year thereafter; and

            (ii)         the date any interchange fee is introduced, varied or removed in the Visa Debit system.

         12.                                      For the purposes of paragraph 10, the weighted average of interchange fees is to be expressed as a number of cents per transaction. It is to be calculated by dividing the total interchange revenue that would have been payable had the interchange fees implemented on the dates specified in paragraph 11 been applicable in the previous financial year, by the number of transactions in that year.

Methodology

         13.                                      The benchmark is to be calculated by the Reserve Bank of Australia using data for the reference year supplied by the credit card schemes designated by the Reserve Bank of Australia and to which the Standard The Setting of Wholesale ('Interchange') Fees in the Designated Credit Card Schemes applies.

         14.                                      The benchmark is to be calculated as follows:

            (a)          A cost base will be calculated for each designated credit card scheme by dividing the costs of processing and authorisation described in paragraphs 13(i) and 13(iii) of the Standard The Setting of Wholesale ('Interchange') Fees in the Designated Credit Card Schemes in the reference year by the total value of credit card transactions in the reference year.

            (b)          A