Document ID: chunk:federal_register_of_legislation:F2009C00144:body:0:p3
Version: federal_register_of_legislation:F2009C00144
Segment Type: other
Provision Reference: 
Character Range: 5107–7968

issuers' costs incurred principally in processing credit card transactions, including the costs of receiving, verifying, reconciling and settling such transactions;

(ii) issuers' costs incurred principally in respect of fraud and fraud prevention in connection with credit card transactions;

(iii) issuers' costs incurred principally in providing authorisation of credit card transactions; and

(iv) issuers' costs incurred in funding the interest-free period on credit card transactions, calculated using the average of the cash rate published by the Reserve Bank of Australia over the three financial years prior to the date by which the cost-based benchmark must be calculated.

14. Data on eligible costs must be drawn from accounting records of the nominated Scheme participants, prepared in accordance with generally accepted accounting principles and Australian accounting standards.

15. Data on eligible costs and the value of transactions of each nominated Scheme participant in each Scheme must be provided by that participant to an independent expert proposed by that Scheme and agreed to by the Reserve Bank of Australia. The expert must review the data to determine if the costs included are eligible costs and must use the data on eligible costs to calculate the cost-based measure for that Scheme.  The expert must provide the cost-based measure and the aggregate data on eligible costs and the value of transactions used to calculate the cost-based measure to the Reserve Bank by 15 September of the year in which the cost-based measure must be calculated.

16. Each nominated Scheme participant for a Scheme must provide to the Reserve Bank of Australia by 15 September of the year in which the cost-based measure must be calculated:

(i) the cost-based measure, the data on eligible costs and the value of transactions undertaken by it used by the independent expert to calculate the cost-based measure;

(ii) the data on eligible costs described in (i) divided into the categories identified in paragraph 13 (i) – (iv) and the number of transactions undertaken by it in the financial year prior to the date by which the cost-based measure must be calculated using credit cards issued by the nominated Scheme participants.

 The administrator of a Scheme must provide to the Reserve Bank of Australia, by 15 September of the year in which the cost-based measure must be calculated, the number and value of transactions undertaken by all of the participants in the Scheme in the previous financial year.

17. The common cost-based benchmark is calculated by the Reserve Bank of Australia by weighting the individual scheme cost-based measures by the shares of each Scheme in the value of credit card transactions undertaken in all the Schemes. The Reserve Bank of Australia will publish the common cost-based benchmark by 30 September of the