❓ A WA parliamentary question addresses Synergy's merchant service fees for card payments, inquiring about ministerial approval, fee rates, expected revenue, and consideration of cost of living pressures. The answer clarifies that ministerial approval isn't required, fee rates have slightly decreased, and the government offers support for customers facing payment difficulties.
AnsweredQoN 644Legislative Council
QuestionView source ↗
I refer to recent Synergy bills issued, stating that from 1 March 2022, merchant service fees will be charged for all card payments, and I ask: (a) was Ministerial approval sought and given for the application of merchant fee cost recovery; (b) what are the applicable merchant fee rates from 1 March 2022; (c) what were the applicable merchant fee rates prior to 1 March 2022; (d) what is the expected revenue from merchant fee cost recovery to Synergy; and (e) did Government contemplate delaying such a decision given the rising cost of living pressures and the likelihood customers may become more reliant on credit cards to settle essential bills such as these?
AnswerView source ↗
Answered
11 May 2022
Responded by
Minister for Regional Development representing the Minister for Energy
Response time
5 days
(a) Ministerial approval is not required for merchant fee cost recovery. The application of card payment surcharges was introduced by the Barnett Government in 2014. As a result of By-law amendments made by the McGowan Government in 2017, Synergy’s complies with the Reserve Bank of Australia’s Surcharging rules per Standard No. 3 of 2016, and passes through only the actual charges it incurs.
(b)-(c) The applicable merchant fee rates are provided in the table below. The only changes introduced from 1 March 2022 were rate reductions for three of the five applicable Schemes.
From 1 March 2022
Prior to 1 March 2022
Change
Visa Credit
0.89%
0.89%
0.00%
Visa Debit
0.38%
0.39%
-0.01%
MasterCard Credit
0.73%
0.76%
-0.03%
MasterCard Debit
0.31%
0.33%
-0.02%
American Express
0.84%
0.84%
0.00%
(d) During the 2021/22 financial year, Synergy expects to recover $3,255,420 in merchant fees.
(e) The Government does not have a role in approving merchant fee cost recovery changes.
However, the State Government and Synergy are committed to supporting customers experiencing bill payment difficulties, with a range of programs and payment arrangements available. Impacted customers are encouraged to contact Synergy directly.
(b)-(c) The applicable merchant fee rates are provided in the table below. The only changes introduced from 1 March 2022 were rate reductions for three of the five applicable Schemes.
From 1 March 2022
Prior to 1 March 2022
Change
Visa Credit
0.89%
0.89%
0.00%
Visa Debit
0.38%
0.39%
-0.01%
MasterCard Credit
0.73%
0.76%
-0.03%
MasterCard Debit
0.31%
0.33%
-0.02%
American Express
0.84%
0.84%
0.00%
(d) During the 2021/22 financial year, Synergy expects to recover $3,255,420 in merchant fees.
(e) The Government does not have a role in approving merchant fee cost recovery changes.
However, the State Government and Synergy are committed to supporting customers experiencing bill payment difficulties, with a range of programs and payment arrangements available. Impacted customers are encouraged to contact Synergy directly.
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