New Zealand to push ahead with ban on card payment surcharges

The New Zealand government has confirmed that the bill to ban card payment surcharges, long debated in retail and services, will be put before parliament this year. Speaking to reporters in the parliamentary lobby, Finance Minister Nicola Willis said the coalition cabinet supported the bill and that the timetable was unchanged. The government estimates the ban could save consumers around NZ$150 million a year.

Willis said feedback from small-business associations and payment service providers was being reviewed and that exemptions would be kept very narrow. The Commerce Commission will launch a public consultation on the consequent change to card-scheme rules later this month. Visa and Mastercard are expected to recalibrate their domestic-transaction fee structures ahead of the ban.

Retail NZ has asked for measures to increase competition in the payment services market so that small businesses can absorb the cost of card processing. Consumer NZ welcomed the announcement and backed greater transparency on digital payments. The Reserve Bank of New Zealand said the decision would not put payment-system stability at risk.