ACCC approves bulk electronic clearing rules

The Australian Competition and Consumer Commission has granted authorisation* for five years to the Australian Payments Clearing Association (APCA) for certain regulations governing the operation of the Bulk Electronic Clearing System (the BECS).

The BECS manages the exchange and settlement of bulk direct entry electronic low value transactions. The direct entry system allows organisations to make arrangements with their financial institution to debit and/or credit large numbers of customers' accounts on a regular basis. The BECS Regulations and Procedures were previously authorised by the Trade Practices Commission in October 1994.

APCA sought re-authorisation only for certain provisions of the BECS Regulations relating to the suspension and termination of BECS membership.

"The ACCC considers that the suspension and termination provisions of the BECS Regulations are likely to continue to result in a benefit to the public through the protection of the security, efficiency and integrity of bulk electronic clearing processes", ACCC Chairman, Mr Graeme Samuel, said today.

The ACCC also considers that the anti-competitive detriment associated with the suspension and termination provisions is likely to be minimal.

"The ACCC considers that there are important checks and balances within APCA and the BECS arrangements to guard against the anti-competitive use of the suspension and termination provisions", Mr Samuel said.

In this respect, the ACCC took into account the review power of the APCA Board over decisions of the BECS Management Committee, including those regarding suspension and termination, and the ability of the RBA to monitor the performance of the BECS Management Committee through its position on both the Management Committee and the APCA Board.

Background

*The Trade Practices Act 1974 prohibits certain forms of anti-competitive agreements including agreements between competitors which limit their ability to deal with who they choose or on the terms they choose. Authorisation provides immunity from court action under the Act arising from certain anti-competitive agreements. Generally speaking, authorisation can only be granted where the ACCC is satisfied that the public benefit arising from the conduct outweighs any competitive detriment.