Policy in the Pub: Reforming payments: direct charging for credit cards
From: Wednesday October 18, 2017, 5:30 pm
To: Wednesday October 18, 2017, 6:30 pm
Reforming payments: direct charging for credit cards
This month’s talk is from Stephen King and Rodney Maddock who will discuss a proposal to reform how we use cards for making payments.
Payments is a very big business. Australians make over five billion payments per year and the RBA estimates the resource costs involved at over $8b (0.54% of GDP). The direct resource costs vary by type of payment: direct debits 18c, cash 40 cents, credit cards 90 cents and cheques about $5.00.
The talk will argue that (i) because the costs are not clear to customers, as a society and as individuals we are spending a lot more on payments than we need to, (ii) that the regulators have got themselves in a muddle over the issue, and (iii) there is a simpler way of regulating which will produce better outcomes.
About the speakers
Stephen King is a Productivity Commissioner and working on reviews into services competition and banking competition, and separately into pharmacies.
Rodney Maddock is a Professor of Finance at Monash University and of economics at Victoria University. He is currently mainly working on fintechs.
The evening is being held at 5.30pm Wednesday 18 October2017 at the Kelvin Club 14-30 Melbourne Place, just off Russell St. There will be drinks and nibbles from 5pm for those who can get there a bit earlier.
Bookings are now closed
14-30 Melbourne Place, Melbourne VIC 3000