New Zealand’s stalled plans to ban credit and debit card surcharges remain under consideration, according to Commerce and Consumer Affairs Minister Cameron Brewer, even as a similar Australian ban takes effect on Thursday. Plans announced last year aimed to have restrictions in place by May, but progress stalled amid a lack of political support.
Government Position on Surcharge Ban Unchanged
Commerce and Consumer Affairs Minister Cameron Brewer stated that National’s intention to ban card surcharging is unchanged. “Work is continuing as we carefully consider the feedback received, and we’re committed to getting it right. We’ll have more to say on next steps in due course,” Brewer said. He added that the government is watching Australia’s approach with interest as it beds in over there.
Alongside potential regulatory bans, Commerce Commission decisions to cut interchange fee caps are expected to save Kiwi businesses up to $290 million a year once fully in place. Officials suggest that lower payment costs for businesses should translate to a fairer deal for shoppers at the checkout.
Consumer Advocacy and Public Sentiment on Payment Fees
Consumer NZ spokesperson Jessica Walker expressed hope that a surcharge ban might still proceed, pointing to research showing 58 percent of people supported or strongly supported banning card payment surcharges. According to Consumer NZ, only 21 percent of people in July thought it was fair for businesses to pass on extra costs, down from 28 percent in April. Meanwhile, 64 percent of respondents stated that businesses should cover those costs themselves.
Did you know? Payment Fee Realities
Current guidelines advise that surcharges should be transparent, avoidable, and not excessive. However, Consumer NZ research highlights that three in 10 New Zealanders are rarely or never informed about surcharges before paying, and 49 percent report paying a surcharge because no fee-free option was available.
Walker acknowledged that businesses face a difficult time and might struggle with a ban. She suggested that if merchants raise prices to cover absorbed costs, increases should be 1 percent or 1.5 percent based on Commerce Commission estimates of interchange fee savings.
Political Proposals and Retailer Concerns
Green Party spokesperson Ricardo Menéndez March voiced disappointment that the Government bill has stalled, noting that his party supports a ban on surcharge fees. “We have attempted to address small retailers and hospitality venues’ concerns of costs being passed on to consumers by amending the bill to introduce a 1 percent cap on merchant fees,” Menéndez March said, adding that the amendment has secured support from Retail NZ.
The Green Party has met with Minister Cameron Brewer to offer parliamentary votes in exchange for backing the amendment. Labour has also been approached for comment.
Frequently Asked Questions About Card Surcharges
When does Australia’s credit card surcharge ban take effect?
Australia’s ban on credit and debit card surcharges officially takes effect on Thursday.
What is the status of a surcharge ban in New Zealand?
Plans announced last year aimed to restrict surcharges by May, but progress stalled due to political support issues. Commerce and Consumer Affairs Minister Cameron Brewer confirms that National’s intention to ban surcharging remains unchanged while feedback is evaluated.
How much could businesses save from interchange fee caps?
Commerce Commission decisions to cut interchange fee caps are expected to save New Zealand businesses up to $290 million annually once fully in place.
What do consumers think about extra payment fees?
Consumer NZ research indicates that 58 percent of people support a ban, and 64 percent believe businesses should cover card processing costs themselves rather than passing them on to shoppers.
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