More transparency in the Australian EFTPOS system is needed, according to Tyro Payments.

This comes after Australia’s major banks demand for more power to self-regulate the EFTPOS industry, despite evidence showing consumers and retailers are being burnt in the current regime.

In a submission to the Reserve Bank of Australia, the Commonwealth Bank and Westpac have asked the regulator to step back from eftpos regulation and allow ePAL, the organisation that is owned by Australia’s major retail banks, to rule themselves on access and interchange fees.

Jost Stollman, Tyro Payments CEO, said if this goes through consumers and retailers will be left to bear the consequences such as paying an extra $150 million a year in higher eftpos fees.

“They will continue to be underserved and overcharged,” he said.

“It’s ironical that the major banks want more control over Australia’s payment system when their own payment systems have failed nine times since August 2010, leaving consumers and retailers unable to transact.”

Australians spend $427 billion every year on their credit and debit cards, while they use eftpos a staggering 2.2 billion times.

Stollmann said more protection is needed for Australian consumers and retailers by the independent regulatory hand of the Reserve Bank of Australia, which should mandate the outcomes, standards and access of the payment system.

“The big banks behind ePAL are unsuited to be entrusted with this role. They obviously act in the profit maximizing interest of their shareholders, not in the public interest,” he said.