Payments Regulation in Asia - CMSPI Whitepaper

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Payments Regulation in Asia

Table 4 offers a review of the key interventions by country with respect to interchange caps.

Effective Date(s) of Current Cap

Country

Credit

Debit

Exceptions

AUD 0.08 (~$0.05) weighted avg. ($0.10 or 0.2% for individual txns) 29

Three Party Card Networks, International Cards

0.5% weighted avg (0.8% for individual txns) 28

2017, 2021 (updated debit)

Australia

No Debit or Credit Interchange Cap in Singapore

Singapore

0.9% (POS/online), 0.8% (QR code) 30 ; for SMBs 0.4% (POS/online), 0.3% (QR code)

Credit Cards, International Cards

India

2018

-

2019 (discontinued)

Japan

3.25%

-

Debit Cards

Table 5. Interchange Caps (Current and Discontinued) by Country

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https://www.rba.gov.au/payments-and-infrastructure/review-of-card-payments-regulation/conclu-

sions-paper-may2016/interchange-fees-and-transparency-of-card-payments.html 29 The RBA also established a sub-benchmark for the weighted average interchange cap of single-network debit cards (SNDCs) at AUD 0.08 to remove incentives for issuing these kinds of cards. https://www.rba.gov.au/ payments-and-infrastructure/review-of-retail-payments-regulation/conclusions-paper-202110/pdf/review-of-re- tail-payments-regulation-conclusions-paper-202110.pdf 30 Small merchants have an annual turnover below Rs 20 lakh (~$24k) https://www.medianama. com/2017/12/223-rbi-mdr/

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