The Appropriate Scope of Credit Card Scheme Regulation

While every effort has been made to ensure the accuracy of this document, the uncertain nature of economic data, forecasting and analysis means that Access Economics Pty Limited is unable to make any warranties in relation to the information contained herein. Access Economics Pty Limited, its employees and agents disclaim liability for any loss or damage which may arise as a consequence of any person relying on the information contained in this document. Foreword Following the designation of "four-party" credit card schemes operated in Australia by Bankcard, MasterCard and Visa by the Reserve Bank of (American Express) has had a number of discussions with the RBA about the possible flow-on implications for "three-party" charge card systems such as those operated by American Express. Recently, American Express has provided a submission on the issues involved to the RBA. In addition, American Express has commissioned Access Economics to prepare a Report analysing the economics and competition aspects of credit card and charge card systems, with particular reference to the case for or against regulatory intervention by government agencies. While American Express has commissioned this Report, and has provided background information, the analysis therein, and the policy conclusions reached, are those of Access Economics.