Afterpay rejects calls for RBA regulation

Seems Australia’s banking regulator is reviewing Afterpay’s policy that stops retailers from adding a surcharge to customers on the purchase price. This article is from Feb. 6:

https://www.smh.com.au/business/banking-and-finance/we-compe…

This came up last year in October when the regulator said they would review Afterpay’s policy. Seems in Australia merchants can add a surcharge for using a credit card. Allowing them to do that for using Afterpay would be a headwind for the company.

John

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This doesn’t seem like a fight Afterpay is going to win if surcharges for credit card use are common and accepted practice.

I don’t know the lay of the land in Australia but all a retailer has to do is up their prices and offer a cash discount (if allowed by Afterpay’s policies and law).

I’ve seen cash discounts in many states in the US.

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