RBA says credit card reforms working

Shopkeepers stood to save $430 million a year from lower credit card costs after the Reserve Bank stepped in to regulate fees, the RBA said in its July Bulletin released Thursday.

The Reserve Bank said the average shopkeeper fee for Bankcard, MasterCard and Visa had fallen 25 per cent, from 1.4 per cent of the transaction cost to 1.05 per cent, since March 2003.

"The decline in merchant service fees since October 2003 amounts to an annual saving of around $430 million for Australian merchants b