Government welcomes plan to cut estimated $260 million annually.
The Commerce Commission has proposed a significant reduction in card fees for New Zealanders, with an estimated saving of $260 million per year. According to Commerce and Consumer Affairs Minister Andrew Bayly, the Government is focused on reducing living costs and increasing Kiwis' quality of life.
The proposal aims to standardise interchange fees, which businesses pay to accept Visa and Mastercard payments. Currently, retailers pay around 1.5% to process a card transaction, but the Commission's plan would reduce this to approximately 0.7%. With the Retail Payment System Act requiring businesses to pass on these savings to consumers, Kiwis can expect lower and more consistent fees at checkout.
The Commerce Commission estimates that New Zealand businesses incur about $1 billion in fees each year for accepting Visa and Mastercard payments from customers. Minister Bayly has expressed his expectation of a comprehensive solution by mid-2025, with the new fees to be implemented as soon as possible.