Central Banking

RBA's Macfarlane on Gresham's Law of payments

In a speech on 'Gresham's Law of payments' given on 23 March, Ian Macfarlane of the Reserve Bank of Australia said one of the longer term aims of the RBA's reforms was to reduce the distortions in the payments system caused by interchange fees.

These are the transaction fees paid between a cardholder's and a merchant's financial institution - in the EFTPOS and Visa debit systems.

"If large differences in the fees in the credit card and EFTPOS systems continue, it is hard to see why in the long

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