ACCC gives draft approval to EFTPOS and ATM clearing rules

The Australian Competition and Consumer Commission today issued a draft decision proposing to re-authorise* minimum standards and procedures imposed by the Australian Payments Clearing Association (APCA) for the conduct and settlement of exchanges of ATM and EFTPOS payment instructions.

The ATM and EFTPOS clearing rules are contained within the Consumer Electronic Clearing System (CECS) Regulations and Manual and have been authorised by the ACCC since August 2000.  As the authorisations were due to expire APCA sought re-authorisation** of the CECS rules on net public benefit grounds. 

"The ACCC considers that the CECS rules provide public benefit through protecting the integrity and security of the ATM and EFTPOS networks", ACCC Deputy Chair, Ms Louise Sylvan, said. "The collective setting of such rules through CECS also provides efficiency benefits.

"While the rules restrict membership of CECS to clearing participants of the ATM and EFTPOS networks, therefore excluding most retailers, the ACCC notes that that there are provisions within CECS for the views of stakeholders that do not qualify for CECS membership to be taken into account. 

"The ACCC is also satisfied that there are provisions to ensure that the rules continue to be set at an appropriate level which is not detrimental to the growth and use of the ATM and EFTPOS networks.

"Accordingly, the ACCC considers that the CECS Regulations and Manual continue to result in a net public benefit and proposes to re-authorise the arrangements". 

The ACCC notes that the RBA is currently consulting interested parties prior to making a decision on whether to designate the EFTPOS and ATM payment systems under its legislation.

"The ACCC may need to review the CECS authorisation if, following the implementation of an access regime either as a consequence of RBA designation or APCA reform, the CECS Regulations and Manual give rise to inconsistencies or entry barriers that are not currently present, in a way that impacted on the net public benefits of the arrangements", Ms Sylvan said.

Interested parties have the opportunity to request a conference to discuss the draft decision and/or to provide further written submissions before the ACCC issues a final decision.

*The ACCC has the function, through the authorisation process, of adjudicating on certain anti-competitive practices that would otherwise breach the Trade Practices Act 1974. Authorisation provides immunity from court action, and is granted where the ACCC is satisfied that the practice delivers offsetting public benefits.

** APCA has lodged applications seeking the revocation of the existing authorisations and the granting of replacement authorisations in respect of the provisions within the CECS Regulations and Manual.