The government appears determined to proceed with its proposed card surcharge ban, despite calls to delay the initiative.
In July, Commerce and Consumer Affairs Minister Scott Simpson announced the government’s intention to ban surcharges on most in-store card payments.
Recently, Simpson said he aims to advance the charges quickly and is optimistic about the prospect of a “surcharge-free summer.”
“We are determined to remove these pesky little stickers, these surprise little bits that are added on to your purchases when you go and buy your date scone and your cup of coffee,” he said.
The Commerce Commission estimates that New Zealanders pay up to $150 million annually in surcharges, with $45 to $65 million of that amount classified as excessive charges.
Retailers have increasingly imposed surcharges as a way to recover the merchant service fees charged by banks and payment providers.
Retail NZ has warned that the government’s proposed ban on merchant surcharges will lead to higher costs for consumers and disproportionately affect small businesses.
It has called for the government to allow more time for thorough consultation on the proposed changes.
Retail NZ’s chief executive Carolyn Young said more companies are choosing to implement card surcharges due to the ongoing economic pressures on businesses. She noted that in a survey of Retail NZ’s members, 26.5% applied PayWave surcharges, but that number has now increased to 44%.
“It is very, very difficult for businesses to stay open right now. Over 60% of businesses have told us recently that they are not meeting their sale targets,” Young said.
She explained that customers who want to avoid paying a surcharge can choose other payment methods such as cash or EFTPOS, or alternatively shop at stores that do not charge surfees.
Simpson acknowledged that while businesses are grappling with challenges, consumers are also facing their own difficulties. He said he will request the Commerce Commission to conduct an investigation into the transparency of bank and card fees to ensure that the fees charged are fair and comparable to those in other countries.