Businesses in New Zealand can save about $105 million a year thanks to the reduction in fees related to Mastercard and Visa payments, according to the Commerce Commission.

Payment providers have cut the fees they charge for accepting Mastercard and Visa transactions after the interchange fee regulation was implemented in November last year.

The regulation, which sets an initial pricing standard to limit interchange fees, is considered an important step to help lower fees businesses face when accepting contactless and credit payments, said John Small, chair of the commission.

“Our data to date shows that businesses will save an estimated $105 million each year – more than 40 per cent above the $74 million predicted in May 2022,” Small elaborated.

“We will be watching for what we expect to see in these businesses sharing this benefit with their consumers.”

Small suggested payment providers make information on their fees clear and transparent so businesses can decide which plan is right for them.