The Reserve Bank of Australia has released The Australian Debit Card Market: Default Settings and Tokenisation Conclusions Paper setting out the conclusions of its recent public consultation on options for further enhancing the competitiveness, efficiency and safety of Australia’s debit card market.
As noted in the Payments System Board’s post-meeting media release in August, the key conclusions are:
- The Board decided that it will not continue to explore prohibiting the setting of a default routing network on dual-network debit cards (DNDCs).
- The Board, however, remains strongly supportive of merchants having the ability to choose their preferred debit card network through least-cost routing (LCR). The Board expects providers to make faster progress on enabling LCR for merchants that could benefit from it.
- The Board decided that following further consultation with industry, the Bank will endeavour to publish high-level expectations on the tokenisation of payment cards by the end of 2023.
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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.
