Payment Systems (Regulation) Act 1998
No. 58, 1998
Compilation No. 7
Compilation date: 19 December 2025
Includes amendments: Act No. 46, 2025
About this compilation
This compilation
This is a compilation of the Payment Systems (Regulation) Act 1998 that shows the text of the law as amended and in force on 19 December 2025 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).
Application, saving and transitional provisions
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Presentational changes
The Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1—Preliminary
1 Short title
2 Commencement
3 Crown is bound by this Act
4 Application of this Act to external Territories
5 Application of Criminal Code
6 Overview of Act
Part 2—Interpretation
7 Definitions
7A Meaning of payment system and participant
8 Meaning of public interest
8A Meaning of national interest
9 Meaning of purchased payment facility and holder of the stored value
9A Functions and powers under the Regulatory Powers Act
9B Contravening an offence provision or a civil penalty provision
Part 3—Regulation of payment systems
Division 1—Overview
10 Overview of main regulatory provisions
Division 2—Designated payment systems
11 Reserve Bank may designate payment systems
11A Multiple designation—consultation by Reserve Bank
Division 2A—Special designated payment systems
11B Minister may designate payment systems
11C Meaning of special regulator
11D Nomination of special regulators
11E Functions and powers of nominated special regulators
11F Ministerial directions to nominated special regulators
11G Reports by nominated special regulators
Division 3—Access regimes
Subdivision A—Operation of access regimes
12 Imposition of access regime
13 When access regimes are in force
14 Variation of access regime
15 When access regimes cease to be…
Overview
The Payment Systems (Regulation) Act 1998 was enacted to provide for the regulation of payment systems and purchased payment facilities in Australia. The Act was introduced to address the need for a regulatory framework that ensures the financial safety, efficiency, and competitiveness of payment systems, while also protecting consumers and maintaining the stability of the financial system. The Act was enacted by the Australian Parliament and its policy objective is to establish a robust regulatory environment for payment systems and purchased payment facilities that balances the interests of participants, consumers, and the broader financial system. The Reserve Bank of Australia and, where applicable, nominated special regulators, are empowered to designate payment systems, impose access regimes, set standards, arbitrate disputes, and issue directions to participants to ensure compliance with regulatory requirements. Additionally, the Act regulates the holders of stored value in purchased payment facilities, requiring them to be authorised deposit-taking institutions or hold a specific authority or exemption from the Reserve Bank. The legislation also includes provisions for the enforcement of civil penalty provisions, the acceptance of enforceable undertakings, and protections from civil and criminal liability for certain actions taken in good faith under the Act.
Scope and Application
The Payment Systems (Regulation) Act 1998 (Cth) provides for the regulation of payment systems and purchased payment facilities within Australia. The Act applies to constitutional corporations, which are corporations to which a particular constitutional provision applies. Specifically, the Act regulates designated payment systems and special designated payment systems, which are payment systems designated by the Reserve Bank of Australia or the Minister, respectively. These systems are subject to various regulatory measures, including the imposition of access regimes, standards, and directions to participants, as well as arbitration of disputes and enforcement of civil penalty provisions. Additionally, the Act regulates holders of stored value in respect of purchased payment facilities, mandating that they must be authorised deposit-taking institutions or be granted an authority or exemption by the Reserve Bank. The Act's jurisdiction extends across Australia, including external territories, and the Criminal Code applies to all offences against this Act. The Act may be further extended or restricted through subordinate instruments.
Key Provisions
- The Payment Systems (Regulation) Act 1998 (the "Act") sets forth the regulatory framework for payment systems and purchased payment facilities in Australia. The main operative sections of the Act involve the designation of payment systems, the imposition of access regimes and standards, the arbitration of disputes, and the regulation of holders of stored value in purchased payment facilities. The Act allows the Reserve Bank of Australia and nominated special regulators to designate payment systems, impose access regimes, determine standards, and arbitrate disputes. Furthermore, it mandates that holders of stored value in purchased payment facilities must be authorised deposit-taking institutions or hold a specific authority or exemption from the Reserve Bank.
- The Act imposes several obligations on the parties it governs. These include requirements for consultation, notification, and compliance with designated standards and access regimes. For instance, the Reserve Bank and nominated special regulators must consult with relevant parties before exercising certain powers and must notify participants of any imposed access regimes or standards. Participants in designated payment systems must comply with standards and access regimes, while holders of stored value in purchased payment facilities must adhere to the Act's provisions regarding authorisation and exemptions.
- Violations of the Act can result in various consequences. The Act establishes both criminal and civil penalties for non-compliance. For example, holders of stored value in purchased payment facilities without the appropriate authority or exemption can be subject to criminal penalties of up to 200 penalty units, with civil penalties of the same amount. Participants who fail to comply with directions or standards may face criminal penalties of up to 100 penalty units and corresponding civil penalties. Additionally, the Act allows for the acceptance of enforceable undertakings from participants, with potential court orders for breach of such undertakings. Furthermore, certain actions taken in good faith under the Act are protected from both criminal and civil liability, provided they relate to designated or special designated payment systems.
- Area of Law
- Commercial Law
- Financial Services Regulation
- Technology Law
- Instrument
- Act
- Concepts
- Definitions & Interpretation
- Regulatory Standards
- Enforcement Powers
- Civil Penalty Provisions
- Reporting & Disclosure Obligations
- Compliance Obligations
- Delegated & Subordinate Legislation
