The Australian Competition and Consumer Commission has elected to take no further action in cracking down on disclosure around fees and exchange rates on foreign cash exchange and international money transfer services.
The decision disappointed disrupters in the sector, including foreign exchange specialists and fintechs, and groups frequently impacted by the high fees and blunt exchange rates of traditional players like banks.
“For small businesses, the impact of non-transparent pricing and FX (foreign money exchange) margins can be significant,” Council of Small Business Organisations of Australia CEO Luke Achterstraat told Capital Brief.
“For example, the ACCC found that consumers and small businesses who used the most expensive bank in February 2024 to transfer the US dollar equivalent of A$10,000 could have saved more than A$400 if they chose the cheapest IMT supplier in the sample.”
