Should payment surcharges on in-store EFTPOS, Visa, and MasterCard transactions be banned?
The bill amends the Retail Payment System Act 2022 to prohibit merchants from charging payment surcharges on certain in-store transactions and extends the Commerce Commission's enforcement powers to cover the ban.
⚡ Taken under urgency
Parliament advanced this bill under urgency (first reading) — moving it through faster than usual, with less time than normal for public submissions.
MPs’ arguments for and against the bill
Why support it
Supporters argued the ban removes hidden fees and ensures the price on the shelf is the price paid, making it easier for consumers to compare retail prices.
Supporters said New Zealanders pay up to $150 million annually in surcharges, including up to $65 million in excess of merchants' reasonable costs, which the ban would address.
Supporters argued the regulator's existing power to cap surcharges has proven difficult to apply at scale, and that an outright ban follows precedent set in the United Kingdom, the European Union, and Australia.
Why oppose it
Opponents argued that banning surcharges removes transparency, since merchant costs will be spread across all goods and paid even by cash-paying customers who do not use cards.
Opponents said the bill places the burden on small businesses, who still pay merchant fees and may pass costs on to consumers, rather than addressing the banks and card networks charging those fees.
Opponents argued the Commerce Commission had already proposed a fairer regulated regime with lower surcharges, and that the bill is a patch that fails to tackle the underlying merchant service fees charged by acquirers.
These are claims MPs made in Parliament’s debate — not verified facts.
Full bill summary & link to official bill page
This bill would amend the Retail Payment System Act 2022 to stop shops adding a surcharge — the extra fee (often ~1–2%) added at the till when you pay by card — on most in-store payments: EFTPOS, and Visa and Mastercard debit and credit cards, including contactless 'tap' and phone wallets. Online payments and networks like American Express aren't covered but could be added later. The Commerce Commission would enforce the ban, and shoppers could seek a refund if wrongly charged.
It comes alongside cuts to the wholesale 'interchange' fees banks charge merchants, so retailers' card costs also fall; in practice the separate card fee disappears and businesses fold the cost into shelf prices instead. Supporters, including the Government and Consumer NZ, cite official estimates that shoppers overpay tens of millions a year in excessive surcharges and say pricing becomes clearer; critics say the cost is just absorbed into higher prices for everyone, including cash users.