MasterCard International Incorporated v Reserve Bank of Australia [2003] FCA 1260

MasterCard International Incorporated v Reserve Bank of Australia [2003] FCA 1260

The language of paragraph 11 of Standard No 1 is unambiguous and prescriptive; it requires that the cost-based benchmark must be calculated by dividing the aggregate value of eligible costs by the aggregate value of all credit card transactions, including both 'on us' and interchange transactions. The interpretation advanced by Edgar Dunn, limiting the denominator to interchange transactions only, cannot be accepted, as this would rewrite or strain the language beyond permissible statutory interpretation.

Jurisdiction
Australia
Judgment Date
10 November 2003
Procedural Posture
Application and Cross Claim (statutory Interpretation) / Reasons for Judgment; Final Orders to Be Settled
Outcome
declarations sought by MasterCard refused; final orders and costs to be settled; finding for the Reserve Bank of Australia on interpretation
Legal Topics
['credit Card Interchange Fees' 'delegated Legislation' 'payment Systems Regulation' 'cost Benchmark Calculation']
['statutory Interpretation' 'payments Law' 'financial Regulation'] ['credit Card Interchange Fees' 'delegated Legislation' 'payment Systems Regulation' 'cost Benchmark Calculation']

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Procedural Posture

Application and Cross Claim (statutory Interpretation) / Reasons for Judgment; Final Orders to Be Settled

Legal Issues

  1. 1 ['Proper interpretation of Standard No 1 for setting of credit card interchange fees under the Payment Systems (Regulation) Act 1998 (Cth)' "Whether calculation of the cost-based benchmark must include all credit card transactions (including 'on us' transactions) or only interchange transactions"]

Ratio Decidendi

The language of paragraph 11 of Standard No 1 is unambiguous and prescriptive; it requires that the cost-based benchmark must be calculated by dividing the aggregate value of eligible costs by the aggregate value of all credit card transactions, including both 'on us' and interchange transactions. The interpretation advanced by Edgar Dunn, limiting the denominator to interchange transactions only, cannot be accepted, as this would rewrite or strain the language beyond permissible statutory interpretation.

Court Disposition

declarations sought by MasterCard refused; final orders and costs to be settled; finding for the Reserve Bank of Australia on interpretation

Orders

  • ['The parties bring in Short Minutes of Orders, including costs, at a time to be arranged with the associate.']