8 November 2012
National Australia Bank (NAB) announced today that customers will save more than $30 million in merchant interchange fees.
The saving for many of NAB’s 130,000 plus merchant customers follows adjustments by Visa and MasterCard schemes as part of the Reserve Bank of Australia’s (RBA) regulation of card payments.
NAB will pass through, rather than recoup, the additional savings associated with the interchange fee adjustments on 1 November for the majority of their Small and Medium Enterprises (SME) customers.
The regulation states that the interchange fees for Visa and Mastercard Australian issued credit and debits cards must be reset every three years to remain under the Reserve Bank of Australia’s benchmark interchange rates.
David Gall, Executive General Manager, Working Capital Services, said as a result of NAB’s fairer billing approach, NAB merchants will collectively save more than $30 million on Visa and MasterCard transactions.
“As Australia’s leading business bank we’re committed to being open, honest and transparent in our billing approaches, and having a fair exchange of value with our customers.
“In the lead up to the Christmas, NAB understands that business owners are looking for ways to better manage their costs. NAB’s billing structure enables merchants to have greater transparency over the cost of processing different cards, enabling them to make informed decisions about which cards and types of transactions can cost them less,” Mr Gall said.
NAB has the largest market share among SME merchants and has led the industry in offering transparent billing to merchant customers.
“Our billing structure is now the standard for all NAB merchants, from the smallest businesses right up to the largest corporates. We are the only bank to offer this level of transparency and control through our billing structure to customers so broadly, regardless of size,” Mr Gall said.
The average saving per merchant account is over $300 per year1.
Today’s announcement reaffirms NAB’s commitment to supporting Australian business and follows NAB’s partnership with global payments leader VeriFone Systems announced earlier this month, which will provide Australian businesses with access to a range of the latest in payments technology integrating with Apple, Android or BlackBerry devices.
NAB also introduced everyday settlements for the majority of merchants, meaning businesses can now access funds processed on the weekend.
1. Average amount, the actual savings will depend on the types of cards and transactions that a merchant processes
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