Payment Systems (Regulation) Act 1998 - Access Regime for the Bankcard credit card system

Administered by Department of the Treasury

Legislation au F2008B00304 In force Legislative Instrument

Legislation content

Access Regime

Objective

The objective of this Access Regime is to promote efficiency and competition in the Australian payments system, having regard to:

(i) the interests of current participants;

(ii) the interests of people who, in the future, may want access to the system;

(iii) the public interest; and

(iv) the financial stability of the designated credit card system.

Application

  1. This Access Regime is imposed under Section 12 of the Payment Systems (Regulation) Act 1998.
  2. This Access Regime applies to the credit card system operated within Australia known as the Bankcard Scheme designated on 12 April 2001 by the Reserve Bank of Australia under Section 11 of the Payment Systems (Regulation) Act 1998, and referred to as follows as “the Scheme”.
  3. In this Access Regime:

an “acquirer” is a participant in the Scheme in Australia that provides services to a merchant to allow the merchant to accept a credit card;

an acquirer is a “self acquirer” if it acquires transactions for which it or a related body corporate (as that term is defined in the Corporations Act 2001) is the merchant;

“authorised deposit-taking institution” has the same meaning given to that term in Section 5(1) of the Banking Act 1959;

“credit card” means a card issued under the rules of the Scheme that can be used for purchasing goods or services on credit, or any other article issued under the rules of the Scheme and commonly known as a credit card;

an “issuer” is a participant in the Scheme in Australia that issues credit cards to the issuer’s customers;

“merchant” means a merchant in Australia that accepts a credit card for payment for goods or services;

“rules of the Scheme” mean the constitution, rules, by-laws, procedures and instruments of the Scheme as applied in Australia, and any other arrangement relating to the Scheme by which participants in the Scheme in Australia consider themselves bound;

a “specialist credit card institution” is an authorised deposit-taking institution that engages in, or proposes to engage in, credit card issuing, credit card acquiring or both (within the meaning of Regulation 4 of the Banking Regulations 1966) and does not otherwise conduct banking business within the meaning of Section 5 of the Banking Act 1959;

terms defined in the Payments Systems (Regulation) Act 1998 have the same meaning in this Access Regime.

4.             Each participant in the Scheme must do all things necessary on its part to ensure compliance with this Access Regime.

5.             If any part of this Access Regime is invalid, it is ineffective only to the extent of such part without invalidating the remaining parts of this Access Regime.

6.             This Access Regime is to be interpreted:

  • in accordance with its objective;  and
  • by looking beyond form to substance.

7.             This Access Regime comes into force on 23 February 2004.

Eligibility for participation

8.             Any person who is an authorised deposit-taking institution is eligible to apply to participate in the Scheme in Australia.  Subject to paragraph 9, any criteria may be applied by the Scheme in assessing applications for participation in the Scheme in Australia.

9.             Neither the rules of the Scheme nor any participant in the Scheme shall discriminate between specialist credit card institutions as a class and other authorised deposit-taking institutions as a class in relation to any of the criteria applied in assessing applications for participation or in relation to the rights and obligations of participants in the Scheme in Australia.

Terms of participation

10.        Neither the rules of the Scheme nor any participant in the Scheme shall prevent a participant in the Scheme in Australia from being:

(i) an issuer only; or

(ii) an acquirer only; or

 (iii) both an issuer and an acquirer.

11.        Neither the rules of the Scheme nor any participant in the Scheme shall impose on a participant in the Scheme in Australia any fee, charge, loading or any form of penalty as a consequence of, or which is related in any way to, that participant’s activity as an acquirer relative to its activity as an issuer in the Scheme.

12.        Neither the rules of the Scheme nor any participant in the Scheme shall prohibit a participant in the Scheme in Australia from being a self acquirer if the participant can reasonably establish in accordance with the rules of the Scheme that, as a self acquirer, it has the capacity to meet the obligations of an acquirer.

Transparency

13.        The administrator of the Scheme or a representative of the participants in the Scheme in Australia must publish the criteria applied in assessing applications for participation in the Scheme in Australia on the Scheme’s website, or make such criteria generally available through other means within three months after this Access Regime comes into force.

14.        The administrator of the Scheme must provide to a person that has applied to participate in the Scheme in Australia an estimate of the time it will take to assess the application before a decision on the application will be made.  The administrator must assess applications in a timely manner without undue delay.

15.        The administrator of the Scheme must provide to a person that has applied to participate in the Scheme in Australia reasons in writing if the application is rejected, within one month after such rejection.

Overview

The Access Regime, introduced in 2004, is an instrument under the Payment Systems (Regulation) Act 1998 and applies to the Bankcard Scheme in Australia. Its primary objective is to foster efficiency and competition within the Australian payments system while balancing the interests of current participants, potential future participants, the public interest, and the financial stability of the designated credit card system. This legislation was enacted by the relevant authority under Section 12 of the Payment Systems (Regulation) Act 1998 and is administered by the Reserve Bank of Australia. The Access Regime ensures that participants in the Scheme, including authorised deposit-taking institutions, specialist credit card institutions, issuers, and acquirers, can operate under transparent conditions that promote fair competition and prevent discrimination. The instrument also mandates that the Scheme's administrator publish the criteria for participation, provide timely feedback on applications, and ensure that participants are not unfairly penalised based on their activities as issuers or acquirers.

Scope and Application

The Access Regime outlined in the legislative instrument F2008B00304 applies to the credit card system operated within Australia known as the Bankcard Scheme, which was designated by the Reserve Bank of Australia on 12 April 2001 under Section 11 of the Payment Systems (Regulation) Act 1998. This Regime aims to promote efficiency and competition in the Australian payments system, taking into account various interests including those of current participants, future participants, the public, and financial stability of the designated credit card system. The Regime applies to any authorised deposit-taking institution that wishes to participate in the Scheme as either an issuer, an acquirer, or both. It prohibits discrimination between specialist credit card institutions and other authorised deposit-taking institutions in the assessment of applications and participation rights, and ensures that no penalties or fees are imposed based on the balance of a participant's activities as an acquirer versus an issuer. Additionally, the Scheme requires transparency in its application process, with criteria for participation to be published and reasons for rejections to be provided in writing. The instrument extends the application of the Regime through subordinate means, ensuring its comprehensive enforcement within the designated credit card system in Australia.

Key Provisions

The Access Regime is designed to enhance efficiency and competition within Australia’s payments system, particularly focusing on the Bankcard Scheme (Section 1). It applies to the credit card system designated by the Reserve Bank of Australia under the Payment Systems (Regulation) Act 1998. Key definitions include terms such as “acquirer”, “issuer”, and “merchant” (Section 3). Each participant in the Scheme is required to ensure compliance with the Regime (Section 4). If any part of this Regime is found to be invalid, it will only affect the invalid part without rendering the rest of the Regime ineffective (Section 5). The Regime should be interpreted with its objectives in mind and with an emphasis on substance over form (Section 6). Participants in the Scheme must adhere to certain obligations and requirements. Any authorised deposit-taking institution can apply to participate in the Scheme, and criteria for assessing applications may be applied by the Scheme (Section 8). However, there must be no discrimination between specialist credit card institutions and other authorised deposit-taking institutions in the application process or in the rights and obligations of participants (Section 9). Participants must also be allowed to be issuers, acquirers, or both without restriction (Section 10). Additionally, no fees, charges, penalties, or other penalties can be imposed on a participant based on their activity as an acquirer relative to their activity as an issuer (Section 11). Participants must also be allowed to be self acquirers if they can reasonably demonstrate the capacity to meet the obligations of an acquirer (Section 12). The criteria for assessing applications for participation must be made publicly available, and the administrator must provide timely feedback and reasons for any rejections (Sections 13–15). Violations of the Access Regime can result in both civil and criminal consequences. While the specific offences, penalties, and consequences are not detailed within the text provided, it is clear that adherence to the Regime is critical. Non-compliance could potentially lead to legal actions against the offending party, with penalties that could range from fines to more severe sanctions depending on the nature and severity of the breach. The precise penalties would be determined in accordance with the broader legislative framework under which the Access Regime operates.

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Payment Systems Law
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.