Prohibition to cover in-store EFTPOS, Visa, Mastercard payments
Commerce and Consumer Affairs Minister Scott Simpson has announced the passage of the Retail Payment System (Ban on Merchant Surcharges) Amendment Bill, which extends the prohibition on surcharges to foreign-issued and commercial cards, on its first reading.
“Including foreign cards is easier for everyone,” Simpson said in the government’s news release. “A comprehensive ban means businesses don’t have to second-guess what’s in or out, and consumers won’t get stung by surprise add-ons at the checkout.”
The government shared that the bill – proposing to prohibit surcharges on all in-store EFTPOS (electronic funds transfers processed at the point of sale), Visa, and Mastercard payments – has gone to the finance and expenditure committee.
In its news release, the government noted that these types of transactions are New Zealand’s most frequent card payment method.
“International visitors from our big inbound tourism markets like the United Kingdom and Europe, where surcharges are long gone, won’t feel like they’ve stepped back in time or they are being ripped off,” Simpson said.
The government explained that the bill aims to address a payment pain point and make life easier for businesses and consumers.
“The ban means Kiwi shoppers will no longer be confronted at payment terminals by a pesky sticker and surprise, sometimes excessive, costs,” Simpson said.
Simpson said the bill seeks to impose a one-month implementation period upon its passage and be in place by May 2026 at the latest.
“By the time the ban is in full swing, the savings from the Commerce Commission’s latest cut to banking fees will benefit businesses, with expected savings of up to $90 million a year,” Simpson said. “That’s on top of the earlier savings of $140m from caps set in 2022.”
The government noted that the proposed surcharging prohibition would exclude online transactions and payments through networks apart from Visa, Mastercard, and EFTPOS.
According to the government’s news release, New Zealand’s Commerce Commission estimated that:
The government noted that the Commerce Commission has chosen to cut merchant service fees for cards currently regulated from 1 December 2025 and for foreign-issued cards from 1 May 2026.
