Card surcharges should be reduced to 1 per cent, with some research supporting a blanket ban, according to Consumer.

The consumer advocacy group said the reduction of interchange fees in December is forecasted to save businesses around $90 million a year, with shoppers also set to see lower surcharges. 

At the start of December, interchange fees were reduced, lowering the cost to businesses of accepting card payments.

Businesses in New Zealand are legally permitted to charge customers an unlimited surcharge to cover the costs of accepting credit and contactless debit card payments.

“We used to say any card payment surcharge above 2 per cent was excessive. However, now that interchange fees have reduced, we expect surcharges for Visa and Mastercard payments to be around 1 per cent,” Jessica Walker, campaigns manager at Consumer said.

“Any business paying more than this should shop around for a better deal.”

Since 2023, Consumer has received more than 300 complaints about excessive surcharges, including one nail salon charging a 25 per cent fee.

New Zealand’s guidelines say that surcharges should be transparent, avoidable and not excessive. These guidelines are often ignored, Consumer claimed.

“Our surveying has found that over one-quarter of New Zealanders are rarely or never told about a surcharge before they pay, and 51 per cent of people have paid a surcharge because they felt it was unavoidable,” Walker added.

“The surcharge situation is a real mess.”

Research from Consumer found that support for a ban on card payment surcharges has risen by 10 per cent since April this year. “Almost 60 per cent of New Zealanders now support or strongly support the introduction of a ban on card payment surcharges,” Walker said.

Consumer is now urging customers to check for excessive surcharges over the festive season and beyond.