January 14, 2019

TAXING CONSUMPTION:

Credit and cash sink as Australians find new ways to pay (Shane Wright, 14 January 2019, SMH)

Conservative Australian shoppers started to wind down their use of cash and credit in the run-up to the key Christmas shopping period, new figures show amid suggestions this year could see record numbers give up their credit cards for good.

Figures from the Reserve Bank released on Monday showed the number of withdrawals out of the nation's network of ATMs at their lowest level for a November since 2001.

ATM transactions dropped by 3.9 per cent over the past year.

The number of credit cards on issue has fallen below 16 million, dropping steadily over the past six months ahead of a string of new rules that started from January 1. They have now fallen to their lowest level since March 2015.

Those laws included a requirement that credit card issuers assess an application based on the ability of the customer to repay the entire credit limit within a three-year period.

Card issuers must also give customers the ability to reduce the limit or cancel their cards online, while they must not charge interest retrospectively on outstanding balances.

As credit card accounts are shut down they are being replaced with debit cards.

Posted by at January 14, 2019 12:06 AM

  

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