Retail NZ has welcomed the release of a Government consultation paper on the fees charged by banks and card companies for retail payments systems.
Commerce and Consumer Affairs Minister Paul Goldsmith has today released an issues paper on retail payment systems for public consultation.
“Concerns have been expressed around the cost of credit card payment fees in New Zealand, particularly in comparison to Australia, and in the context of a decline in the use of Eftpos,” he said.
“The issues paper is designed to get a better understanding of how retail payments operate in New Zealand, with particular regard to innovation and efficiency. It will inform MBIE’s policy work around whether regulation is needed to ensure a fair distribution of costs between banks, businesses and consumers.”
Research by industry association, Retail NZ says New Zealand merchants pay substantially more than merchants in other markets for accepting credit and contactless debit cards, which ultimately translates into higher prices for consumers.
“We have been calling for more transparency and oversight of payments systems, and we are pleased that the Minister of Commerce has today released a discussion paper on these issues,” said Retail NZ’s General Manager for Public Affairs, Greg Harford.
“The fees that merchants have to pay to accept credit and contactless debit payments are substantially higher in New Zealand than in comparable jurisdictions such as Australia and the UK.”
On average, New Zealand merchants pay 1.7 per cent for credit card transactions and 1.0 per cent for contactless debit transactions, compared to 0.89 per cent and 0.36 per cent in the UK, and 0.78 per cent and 9 cents per contactless debit transaction in Australia.
Harford said a report last year by Covec estimated that merchants would pay $3.1 billion in fees over the next 10 years, most of which is flowing to foreign owned banks and card companies.
“Retailers are watching progress on this issue closely and will be providing feedback to Government on the issues raised in the paper,” he said.
