comes from goldman sachs institutional update released this...

comes from goldman sachs institutional update released this morning:

Implications
We assume that CAB’s current 10% surcharge on bank-issued cards will be
limited to 5% from mid-FY14 (we assume a delayed implementation). This
sees us downgrade our FY14/15 EPS by 13%/21%. We note CAB maintains
it will not be affected by the RBA’s new standards as it charges a ‘service
fee’, not a surcharge.

Possible transaction flows under a 5% surcharge
In our view, a reduced surcharge will have the following impact on each industry
participant:
? CAB and other terminal providers: Their revenue stream will be reduced
from 10% of taxi fares to, say, 5%.
? Taxi networks will no longer receive a 2.5% commission from CAB for all fares
processed through CAB terminals.
? Taxi operators will likely receive reduced or zero commissions from non-CAB
terminal providers as they can no longer afford to pay them.
Our view of the surcharge flows is shown below


obviously i am not going to go into much more detail. dont want to get sued.