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Competition Commission moves to coordinate signature abolition for Visa, MasterCard and American Express

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By Steven Raeburn, N/A

October 14, 2013 | 2 min read

The Australian Competition and Consumer Commission has announced that it is proposing to allow Visa and MasterCard, together with American Express and participating financial institutions, to coordinate action to remove signatures as a method of authentication for most credit card transactions that are completed in person.

A 'coordinated approach and a single message'

Announcing the move, the ACCC said that it believed the groups would all make separate arrangements, and that ‘public benefits will arise from the proposed coordination between the card schemes and financial institutions’.

“A coordinated approach and a single message from industry is likely to lead to some efficiencies and less confusion for customers and merchants,” ACCC Commissioner Dr Jill Walker said.

“This coordination is unlikely to significantly reduce competition, as the card schemes will continue to compete on fees and all other aspects of their product and service offerings to financial institutions, merchants and cardholders.”

A final decision is expected in December.

Credit card image via Shutterstock

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