- Hon Andrew Bayly
The Government welcomes the Commerce Commission's plan to reduce card fees for Kiwis by an estimated $260 million a year, Commerce and Consumer Affairs Minister Andrew Bayly says.
"The Government is relentlessly focused on reducing the cost of living, so Kiwis can keep more of their hard-earned income and live a higher quality of life," Mr Bayly says.
"Credit and debit card fees are a pain for consumers. Nobody appreciates being hit by a big surcharge or payWave fee at the checkout. It's hard for Kiwis to know what fees are reasonable and fair, and even a few cents on a transaction can add up over time.
"That's why I am delighted the Commission has today released a draft decision to reduce and standardise interchange fees, which are the fees that business incur to accept Visa and Mastercard card payments.
"Once implemented, Kiwis can expect to pay lower and more consistent fees at the checkout.
"Right now, retailers pay on average 1.5 per cent to process a card transaction. The Commission's proposal reduces this to around 0.7 per cent.
"The Retail Payment System Act stipulates that businesses must only charge customers the cost of processing a payment, meaning businesses are obligated to pass this saving on to consumers.
"Today's news is an important win for Kiwi businesses and consumers who the Commission estimates will save about $260 million per year in card fees.
"I have expressed to the Commission the urgency of lowering card fees and expect the Commission to also introduce a cap on total surcharge fees.
"I expect the Commission to arrive at a comprehensive solution for both interchange and surcharge fees by mid-2025 and for it to be implemented as soon as practicable."
Notes to editors
Interchange fees are the fees that banks charge to process Visa and Mastercard payments.
The Commerce Commission estimates that New Zealand businesses incur approx. $1 billion in fees each year to accept Visa and Mastercard payments from their customers.
