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Bankcard scheme called ‘anti-competitive’

fNZPA Canberra The Australian Federation of Consumer Organisations Inc, hopes that “Bancard” > interest rates will fall after; a ruling on the “Bankcard”! ’scheme by the Australian] (Trade Practices Commission. ( '[ The executive director of; I the Consumer Federation: I (Mr A. McCann) -said that! '(the present annual rate of| '(interest of 18 per cent was excessive. ! The commission gave ap-( (proval, in its draft ruling, to ( !fhe -inter-bank agreement' • which covers the working of ; the “Bankcard” scheme, subject to three major conditions. They were: . . . that each (bank be at liberty 7 to particiIpate in any other chargecard scheme: . . . that each: I bank will make its own indi-i

vidual decision on charges it; wiil make to merchants (in-1 eluding groups of mer- ; chants) and to cardholders: land on the period of “free'; ■; credit” it will allow cardhol-i ’iders; and . . . that merchants] (are at liberty to charge a: (lower price for cash sales] ’(than for “Bankcard” sales if] iThev so wish. i J the chief executive! ’(officer. “Bankcard” (Mr R. J.: ;(Pitman) said that he was not (in a position to comment on jthe rulilngs as there had not (been time for the individual (banks to consider them, and: let him know of their views. > The Australian Federation; of Credit Union Leagues Ltd,: which asked the commission; i to open the “Bankcard”; scheme to non-bank finan-j cial institutions, was the; major opponent of the interibarik agreement. ]

Fourteen banks participate in the Australian scheme,! which forbids them from: participating in any other; chargecard scheme. and; stipulates common charges, i

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19800222.2.96.5

Bibliographic details

Press, 22 February 1980, Page 17

Word Count
259

Bankcard scheme called ‘anti-competitive’ Press, 22 February 1980, Page 17

Bankcard scheme called ‘anti-competitive’ Press, 22 February 1980, Page 17