Fed: Macfarlane would like credit card holders to pay fee = 2

AAP General News (Australia)
12-08-2003
Fed: Macfarlane would like credit card holders to pay fee = 2

He said banks were making merchants subsidise credit card holders, especially those
who avoided being hit with credit fees by paying their debt before the interest-free period
expired.

"The card holder is getting massively subsidised basically," Mr Macfarlane said.

"Particularly the card holder who has never borrowed, (he) is getting massively subsidised,
he earns 55 days free credit for nothing.

"That subsidy was being paid for by the merchants of Australia.

"And what's happening now, the merchants aren't paying quite as much and as a result
the banks have chosen to reduce the subsidy that was built into the credit card and they're
still being subsidised but the subsidy is not as big."

AAP sm/apm/br

KEYWORD: RBA CARDS 2 CANBERRA (REOPENS)

2003 AAP Information Services Pty Limited (AAP) or its Licensors.