The FBAA has called for a reduction in credit card rates, labelling customers as the innocent victims of big banks losing money from other banking services.
FBAA chief executive Peter White applauded the Reserve Bank for challenging the banks recently as to why credit card rates were abnormally high compared to the official cash rate, which currently sits at two per cent.
“We know that card rates have to be higher than regular rates because it’s an unsecured line of credit, but it is time customers felt some relief with a reduction in their interest repayments,” he said.
Mr White believes the public may be paying the price for banks losing revenue streams from the drop in fees they receive from dwindling ATM transactions.
“I found in interesting to note that ATM fees are sliding dramatically because more people are using digital platforms to make payments,” he said.
“I hope this is not the reason why banks refuse to drop interest rates and charges on credit cards.”
Australians currently hold 16 million credit cards that bring in around $9 billion in interest charges and fees to banks, according to the FBAA.