Commerce and Consumer Affairs Minister Scott Simpson announces the government’s plans to ban surcharges on the majority of in-store payments.
According to Simpson, surcharges for in-store payments will be banned no later than May 2026.
“Shoppers will no longer be penalised for their choice of payment method, whether that’s tapping, swiping, or using their phone’s digital wallet,” he said.
Payments made via the Visa and Mastercard networks, as well as through EFTPOS, were the primary methods of card payment in New Zealand. Simpson noted that surcharges on certain purchases were an inconvenience and an unwelcome surprise for shoppers at the checkout.
“That pesky note or sticker on the payment machine will become a thing of the past.”
“We’re banning surcharges so consumers can shop with confidence knowing how much they will pay for their purchases.
New Zealanders are estimated to pay around $150 million each year in surcharges, with $45 to $65 million of that amount considered excessive. Simpson said, “the money could be saved or spent elsewhere.”
BusinessNZ advocacy director Catherine Beard expressed support for the change, saying that it aligns with “how regulations are being implemented in other parts of the world.”
Meanwhile, Hospitality NZ chief executive Steve Armitage stated that consumer savings would hinge on how businesses react and whether it remains feasible to recover costs through other means.
“It’s important to recognise that electronic payments come with real costs to businesses. If surcharges are removed, many operators will have to adjust their pricing to reflect that—particularly for small hospitality operators already under pressure,” he said.
“Margins across the hospitality sector remain very tight. Some operators may be able to absorb the cost, but for many, particularly smaller businesses, that won’t be realistic. These businesses may have no option but to reflect those costs in their pricing.”
Consumer NZ advocacy head Jessica Walker believes that, “The ban is a no-brainer.
“These new rules will bring an end to a very messy situation.”
Walker said the prices of products “shouldn’t increase by that much,” if at all.
“Any increase should be very minimal because interchange is being lowered, which will reduce the cost to businesses of accepting payments.”
Earlier this month, the Commerce Commission also announced its final decision to reduce interchange fees for New Zealand businesses processing Visa and Mastercard payments.
The Commission stated that these costs are excessive and has implemented measures to ease the financial load on businesses by approximately $90 million per year.