The Australian Retailers Association (ARA) has laughed off Australian Bankers’ Association (ABA) comments about merchant transaction fees and said the recently proposed interim EFTPOS interchange fee standard could increase fees for retailers by up to 17 cents per transaction.

The association’s executive director and AMPF chair Russell Zimmerman said the increased fees could result in a $250 million bill for retailers across the country over 12 months.

I’m sure consumers will find it quite comical that the Australian Banker’s Association (ABA), whose members failed to pass on six months of interest rate reductions to credit card holders, is lecturing retailers about responsible pricing.

The cost for retailers accepting credit and charge cards has fallen since 2002, that’s very true. Fortunately for consumers, retailing is a very competitive industry and these savings have indeed been passed onto consumers.

The fact remains transaction fees are only one of the many expenses that influence retail pricing. In fact, retailers are now struggling with increases to wage bills and leasing costs and they simply cannot afford to foot the $250 million bill for the proposed changes to EFTPOS interchange fees, Zimmerman said.