The RBA is reviewing card payments as a whole, but BNPL is being...

The RBA is reviewing card payments as a whole, but BNPL is being treated separately to other surcharges. The RBA is committed to bringing the charges down in both areas, but also to allow merchants to pass the costs on shoppers, which is likely to change consumer behaviour with BNPL as well as bring charges down and encourage competition. BNPL providers are begging the RBA to put the changes off for several years until the BNPL business gets on its feet, but the RBA believes that customers and merchants are being asked to artificially support an unprofitable industry. Public submissions will be invited before the RBA announces its intentions and puts a date on it


The RBA is reviewing several aspects of BNPL merchant fees, focusing on:

• No-surcharge rules: BNPL providers often prohibit merchants from passing on transaction costs to consumers. The RBA is reconsidering whether these rules should be removed to promote competition and efficiency
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• High merchant fees: BNPL fees, averaging 3.5–4% of transaction value, are significantly higher than card payment fees. The review examines whether merchants should have the right to surcharge or negotiate lower fees
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• Regulatory consistency: The RBA is assessing inconsistencies in surcharging rules across different BNPL models, such as virtual card-based transactions
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