Retail and business groups in New Zealand have once again called for a pause on retail payment surcharges, saying that recent developments in Australia have provided further grounds for a rethink.

Last week the Reserve Bank of Australia signalled it may backtrack a full ban and is now considering a more nuanced approach, such as allowing surcharging on higher-cost credit and corporate cards, and reassessing cuts to interchange fees.

Auckland Business Chamber CEO Simon Bridges said Australia’s shift should ring alarm bells in Wellington.

“Across the Tasman, regulators have realised that a one-size-fits-all ban creates more problems than it solves,” Bridges said. “New Zealand risks charging ahead with a policy that even Australia now recognises is too blunt, too disruptive, and unfair on small businesses.”

Carolyn Young, CEO of Retail NZ, suggests the government look at what’s happening in Australia and listen to Kiwi small businesses who simply cannot absorb another hit.

“Surcharges are a transparent way to recover the high costs of accepting certain payment methods,” she said. “If the surcharge ban goes ahead, those costs won’t disappear – they’ll just be hidden in higher prices for everyone.”

The Auckland Business Chamber, Retail NZ, along with the New Zealand Chambers of Commerce Network and a coalition of national industry associations, continue to support a practical alternative, including capping debit surcharges at 0.5 per cent and credit surcharges at 1 per cent on personal domestic cards.