On Aug. 2, 2025, NZ GVT Prime Minister Christopher Luxon spoke re economic policy.
Said that small businesses are set to save tens of millions of dollars on bank interchange fees from Dec. 1, and NZ GVT is making sure those savings are being passed on to consumers by abolishing card surcharges.
In Sep. 2025, NZ PRL introduced amendment bill re retail payments, see #269411.
On Dec. 18, NZ CC proposed to reduce card fees paid by businesses.
NZ CC proposed a reduction of around NZD 260mn annually in fees for businesses accepting Visa, Mastercard payments, to lower payment fees passed onto consumers.
Follows NZ CC Jul. 2024 proposed to further regulate card interchange fee, #220442.
Proposal
Proposal sets clear expectation businesses should pass these savings on to customers.
The merchant fees are typically recovered by businesses through surcharges or increased prices, and some businesses set surcharges higher than their actual costs.
NZ CC aims to simplify complex, variable Visa and Mastercard fees, reduce surcharges by around 0.7% to 1.0% or to see benefits reflected via prices of goods and services.
Average merchant service fee for small businesses is between 1.2% and 1.5%, with the NZ CC advising businesses paying more than 1.5% to explore better deals.
Effectiveness
The comment period on this consultation closes at 5pm on Feb. 18, 2025.
NZ GVT Comments
On same day, NZ GVT supported plan to reduce card fees for Kiwis; under the Retail payment system act, businesses are required to pass these savings on to consumers.
Urged the NZ CC to impose a cap on surcharge fees; NZ GVT said final solution on both interchange, surcharge fees is expected by mid-2025, implementation soon after.
Jul. 2025 Final Decision
On Jul. 17, 2025, NZ CC issued its final decision and reasons paper re reduction of interchange fees paid by businesses to accept Visa and Mastercard payments.
NZ CC expects payments providers to support businesses to understand their costs to accept these payment types, so where businesses choose to surcharge it accurately reflects their cost.
Plus, NZ CC will monitor the results to check savings are being passed on to merchants and consumers and it will consider regulating commercial credit cards in the future.
Document dated Jul. 17, 2025, received from NZ CC Jul. 23, summarized on Jul. 25.
Aug. 2025 NZ GVT Conference Speech
On Aug. 2, 2025, NZ GVT Prime Minister Christopher Luxon spoke re economic policy.
Said that small businesses are set to save tens of millions of dollars on bank interchange fees from Dec. 1, and NZ GVT is making sure those savings are being passed on to consumers by abolishing card surcharges.
In Sep. 2025, NZ PRL introduced amendment bill re retail payments, see #269411.
