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New Zealand plans to scrap card payment surcharges
Published by Global Banking & Finance Review®
Posted on July 28, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 28, 2025
2 min readLast updated: January 22, 2026
New Zealand plans to ban card surcharges in stores, saving consumers NZ$150 million annually. The ban excludes online and foreign card payments.
(Reuters) -The New Zealand government on Monday proposed to ban surcharges on most payments in stores made using debit and credit cards from May next year, a move which it said could save roughly NZ$150 million ($90.2 million) for Kiwi consumers.
The plan follows the decision last year by New Zealand's Commerce Commission to lower fees that local businesses pay to accept Visa and Mastercard payments.
"We are scrapping surcharges at the till. New Zealanders are paying up to NZ$150 million in surcharges every year. That's money that could be saved or spent elsewhere," Prime Minister Christopher Luxon said.
"You no longer will be penalised for your choice of payment method, whether that's tapping, swiping, or using your phone's digital wallet," Luxon told reporters.
Visa and Mastercard did not immediately respond to a request seeking comment.
The proposed ban will not include online payments or transactions made using foreign-issued cards, prepaid, travel and gift cards.
New Zealand's Commerce Commission estimates that consumers pay about NZ$150 million in surcharges annually, including up to NZ$65 million in excessive surcharges.
"Surcharges cover the fees businesses pay for accepting contactless payments and credit cards, but we know these are often excessive. In some cases, the retailer doesn't even make it clear what the percentage is," Commerce Minister Scott Simpson said in a statement.
The government plans to introduce the bill to ban most card surcharges by the end of this year.
Shops in New Zealand typically charge consumers around 0.7% for debit card payments and up to 2% for credit card payments, according to New Zealand's Commerce Commission.
Australia's central bank this month proposed to scrap surcharges on most debit and credit card payments for consumers, saying it no longer achieved the intended purpose of steering consumers to make more efficient payment choices.
($1 = 1.6633 New Zealand dollars)
(Reporting by Renju Jose in Sydney; Editing by Saad Sayeed)
The New Zealand government has proposed to ban surcharges on most debit and credit card payments in stores starting from May next year.
Consumers in New Zealand pay approximately NZ$150 million in surcharges annually, with up to NZ$65 million considered excessive.
No, the proposed ban will not include online payments or transactions made using foreign-issued cards, prepaid, travel, and gift cards.
Prime Minister Christopher Luxon stated that scrapping surcharges would save New Zealanders significant amounts of money that could be spent elsewhere.
Shops in New Zealand typically charge around 0.7% for debit card payments and up to 2% for credit card payments.
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