The Australian Competition and Consumer Commission (ACCC) is consulting on transparency and competition in international money transfer (IMT) services by consumers since its 2019 report.
The ACCC observed that fintechs are driving competition in the market and typically offer cheaper prices than the big four banks.
It says the big four banks appear to have responded by, in many cases, removing or reducing flat fees on IMT transfers. Despite the big four banks reducing their prices in the years since the 2019 Inquiry, they remain higher than many of their rivals, in particular, fintechs.
The ACCC proposes to amend its Best Practice Guidance in relation to suppliers that provide IMT services to include the recommendation that suppliers:
- deduct fees from the amount inserted. This includes both in the FX calculator and in the backend of transactions to ensure consumers are not being misled in how transactions are processed or the amounts that will be received
- show in a prominent position, the estimated time a transfer will take to reach its destination. This should be as accurate as possible and relevant for every corridor the supplier offers
- provide their customers the ability to track the status of their payment.
The ACCC Best Practice Guidance covers foreign cash services separately to IMTs. The guidance for those services has not changed.
The Best Practice Guidance will remain as voluntary guidance.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
