Australia’s central bank defends its 2026 plan to end unfair card fees, citing consumer savings and fraud protection.

Reserve Bank of Australia Governor Michele Bullock defended the central bank’s plan to eliminate unfair card surcharges by July 2026, dismissing industry claims that capping interchange fees would weaken fraud prevention or harm consumers. She argued banks have strong incentives to maintain secure systems and that fraud costs can be covered through existing fees. The RBA aims to save shoppers $1.2 billion annually and reduce small business costs, while the banking sector warns of potential fee increases or reduced benefits. The RBA is also exploring a digital currency for wholesale transactions to lower system costs.