ACCC sees continuing benefit in bulk electronic transaction clearing rules

The Australian Competition and Consumer Commission has reauthorised certain regulations governing the operation of the Bulk Electronic Clearing System (BECS) which is managed by the Australian Payments Clearing Association.

BECS manages the conduct of the exchange and settlement of bulk direct entry electronic low value transactions. It allows approved organisations to make arrangements with their financial institution to debit and/or credit large numbers of customers' accounts on a regular basis.

APCA sought reauthorisation only for certain provisions of the BECS regulations relating to suspension and termination of BECS membership.  These provisions have been authorised by the ACCC, and its predecessor, the Trade Practices Commission, since 1994.

The ACCC considers the suspension and termination provisions of the BECS regulations continue to produce a public benefit by helping to maintain the security, efficiency and integrity of the bulk electronic transaction clearing process.

The decision to reauthorise the arrangements affirms the ACCC's draft decision issued in April 2010.

In December last year the ACCC reauthorised the suspension and termination provisions of APCA's Consumer Electronic Clearing System regulations (which covers ATM and EFTPOS transactions). In April this year the ACCC also reauthorised the suspension and termination provisions of APCA’s Australian Paper Clearing System regulations (which primarily covers cheque transactions).

Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974.  Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

More information regarding the BECS application, including the reasons for the ACCC's decision, is available by following the Public registers link on the ACCC's website, www.accc.gov.au/AuthorisationsRegister and by following the links to this matter.