Interchange Determination Project Payment Stream RegulationFollowing concerns raised in the Competition Commission Bank Enquiry report regarding interchange fees, the South African Reserve Bank (SARB) initiated the Interchange Determination project in 2011 with theintention to review interchange rates applied in all relevant payment streams.   The Bank Enquiry Report recommended that an independent, objective and transparent regulatory process be set-up to determine interchange fees in the card and Automated Teller Machine (ATM) payment streams.The ATM payment stream was selected as the pilot phase for the project and the calculation of fees for this payment stream is now complete, with details of a sustainable regulatory process going forward. The project considered withdrawals, balance enquiries and declined transactions as these account for about 80 per cent of transactions undertaken on ATMs. The new ATM rate consists of both fixed and variable costs. “Fixed” costs are any fees that are needed for any or all transactions (withdrawals, balance enquiries and declined transactions) whereas the “variable” costs are dependent on the transaction value. The rates are determined through a cost-based methodology and qualitative adjustments to the cost per transaction:·        ATM withdrawals: R3,48 + 0,53 per cent of the amount withdrawn·        Balance enquiries: R1,33 per transaction·        Declined transactions: R0,94 per transaction The rates will apply from the first quarter 2014 to December 2014 the SARB will communicate the details to the banks.The second phase of the project, which will focus on all card payment streams, are currently underway. Recommendations from this phase will be communicated once the project is concluded. Issued by:Hlengani MathebulaHead: Group Strategy and CommunicationsTel: +27 12 313 4210Cell: +27 82 448 921​