to be honest my involvement in the project was too long ago to remember specific numbers involved. i do remember that acquiring was pretty much the bulk of the 2 buck charge though. an issuer has very limited transaction costs at all because it is part of their overall banking suite of products for which the customer already pays fees.
so what is their cost? sweet fa. the main cost to the bank is acquiring the transaction because that is where the risk is (moreso for credit cards, but there is still a little risk with debit cards. not much, but there is a little).
if you consider banks have operating margins of about 50%, perhaps that might be considered acceptable. i honestly dont think that is an issue. in the end, what it will come to is the negotiating between the bank and the oeprator. once the agreement has been struck, all sorts of dodgy justification will take place. in the end, the rba will simply have to decide for itself.
5500 machines is definitely a bargaining point.
less so for the cba than say the anz/wbc.
customers are very reluctant to switch banks despite the appalling treatment they endured from the mid-90's to about 2004, when banks were intent on moving people to atms and the internet. research shows that while people rate banks quite lowly for satisfaction, when asked who they bank with, they seem to have some sort of pride about who they bank with and how long they have been with them.
historically the "the national" has done very well with country customers and "the politically conservative". people will puff their chests and say my family has banked with so and so for so long and that is who we have always been with.
this is changing, especially since the mortgage market become more open, people become less attached to who they bank with.
anyhow, getting back to your point. young people will definitely be concerned if they cant use their cards at most pubs and clubs they bank with. but this is a very indirect threat to the banks.
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