Australia’s Security and Investment Commission (ASIC) has recently publicized concerns that businesses are overcharging for credit card transactions because policing such behavior has slipped between the cracks between two regulatory bodies.
Airlines, utilities taxi companies and other low-competition marketplaces are where the overcharges are most routinely seen, according to Visa and MasterCard, and are the types of purchases where customers are routinely charged a steep mark-up from the actual cost of a transaction.
“A co-regulatory approach to limit an activity appears to have failed because the limitation imposed by payment schemes is not sufficiently clear, and is not being enforced by a regulator with sufficient powers and resources to carry out the enforcement,” ASIC said in its submission to the Financial System Inquiry released on Tuesday, reports The Sydney Morning Herald.
ASIC further noted that it only has authority to regulate such fees under its own power in the case of price gouging, though Visa has formally requested of the inquiry that ASIC be given such power.
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