APCA has for many years had a focus on effective consultation beyond its own membership community, principally through the advisory councils attached to its three retail payments systems. As APCA’s policy formulation role expands in response to the dynamic payments policy environment, APCA has undertaken an expanded consultation and communication programme to ensure that it stays close to the needs and interests of the broadening community of payments stakeholders.
Liaison with regulators
Under the liaison arrangements agreed in 2007, APCA and the Reserve Bank (RBA) consult on a regular basis on issues of industry policy. APCA is also providing quarterly progress reports to the RBA on implementing the account switching facilitation package and ATM reforms. The reports are publicly available at www.apca.com.au and www.rba.gov.au.
In addition to the RBA, APCA liaises with the Australian Consumer and Competition Commission, Australian Securities and Investments Commission and the Australian Prudential Regulation Authority to communicate industry positions and views on payment systems developments as required. Work on the account switching facilitation package, in particular, saw a closer engagement with the Commonwealth Treasurer’s Office and Treasury officials.
ICPACE
The annual meeting of the International Council of Payment Association Chief Executives (ICPACE) was held in Ireland in August 2007. The two and half day event was attended by payment association representatives from Australia, Canada, Ireland, South Africa and the United Kingdom. ICPACE provides an effective forum for members to exchange information and keep abreast of payment system developments from an international perspective.
Low value payments
APCA’s industry consultation paper on the future of Australia’s low value payment (LVP) systems sought broad industry views on the future evolution of cheques and direct credit and direct debit so as to ensure they continue to meet consumers’ needs over the next decade. As part of the consultation process, APCA held an industry seminar in June 2008 attracting more than 150 industry participants.
Account switching
APCA released a public consultation paper on Aspects of Account Switching in mid-September 2007 seeking views on whether direct debit and credit arrangements deter consumers from switching accounts between financial institutions. Of the 11 submissions received, each indicated some degree of interest in making it easier for consumers to switch accounts. The outcome of a feasibility study to assess a number of possible options was used to inform the development of the account switching facilitation package agreed between the industry and Treasury in February 2008.
Preventing fraud
APCA and the Australian Bankers’ Association (ABA) jointly hosted an industry workshop in February 2008 to identify the most important industry-wide initiatives for countering fraud in Australia. The workshop was attended by 40 decision makers from banks, building societies, credit unions, major retailers and card schemes. Key themes emerging from the day included the need for greater consumer awareness campaigns to combat the growing threat of identity fraud, new standards and guidelines for authenticating internet users, and co-ordinated approaches to combat the growing area of card-not-present fraud. The best way to progress the proposed measures will be considered in the coming year.
APCA collects and makes public industry-wide data on payments fraud as part of the industry’s commitment to improve disclosure and help protect consumers and businesses in Australia. The data, which is for cheque, debit card, credit card and charge card fraud across all financial institutions, is released in November and May each year. Since it was first released in November 2006, APCA’s payment fraud data has generated increasing media attention and general interest in combating payments fraud. The entire fraud data collection is available at www.apca.com.au.
Submissions
On 12 June 2008, the Australian Competition and Consumer Commission (ACCC) issued a draft notice proposing to revoke eBay’s notification that would have mandated near exclusive use of PayPal on the eBay website. Along with other industry bodies and stakeholders, APCA made a submission to the ACCC as part of the regulator’s consultative process. In its draft determination, the ACCC made a number of references to APCA’s submission.
Advisory councils
Advisory councils were established in APCS, BECS and CECS in 1999 to broaden consultation by taking into account the views of organisations with a significant role in these payment clearing systems. APCA’s decision-making has been enhanced through the different perspectives and expertise the advisory councils bring from outside APCA’s membership. Decision-making is better informed, more attuned to the interests of all clearing system stakeholders and more attuned to the changing payments system environment.
Industry conferences and other activities
During the year, APCA’s senior management presented at more than 20 conferences and other forums, both nationally and internationally, to share information on Australia’s payment systems. APCA also welcomed delegations from international central banks and payment associations including Indonesia, Thailand and New Zealand.
Publications
In addition to consultation papers, APCA keeps the community informed of payments industry developments through its annual reviews, the quarterly publication Payments Monitor and the website. For the second year, the Annual Review has been produced in an interactive, on-line format to make it easily accessible to the broader community.
Representing the industry
APCA participates on a number of working groups and committees developing technical and security standards for financial transactions including:
- Standards Australia Committee IT/5, developing standards for financial transactions systems.
- Standards Australia Committee IT/5/3, developing standards for message formats.
- Standards Australia working Group IT/5/4, developing standards for authentication and security.
- ISO/TC68/SC2/Working Group 11, developing international standards for banking and related financial services in particular triple data encryption algorithms.
- ISO/TC68/SC2/Working Group 13, developing standards for security in retail banking.
- SWIFT Australia: National Member Group; User Group; and National Member Group Standards Subcommittee.
