The proposed card surcharge ban has been opposed by Retail NZ, the country’s largest retail advocacy group, despite evidence showing the public’s overwhelming support for it.

New Zealand’s government is planning to ban payment surcharges for the majority of in-person card payments. It would impact payments through Visa, Mastercard, Eftpos, contactless, digital wallets, and inserted or swiped cards.

The changes – which have received support from consumer advocacy groups – are set to come into effect from May.

Retail NZ’s members have voiced concern about the changes, claiming they will bring additional costs. 

“The proposed ban is poorly targeted, has been rushed through and risks significant unintended consequences for retailers and consumers alike,” said CEO Carolyn Young. 

“Many retailers cannot afford to absorb the merchant service fee, and we are hearing that many of our members will have to pass on those costs. That will leave both businesses and consumers worse off at a time when the cost-of-living continues to bite.” 

Retail NZ added that one member, Hubert Kuzel of Office Supplies in Wellington, said he can’t afford to absorb the cost of surcharges.

“The trend is going more and more into contactless payments, and this is where the charges are happening,” Kuzel said. 

“It really takes up to almost 20 per cent of our profit, and I’m not making a mistake, it is 20 per cent of what we’re losing on margins.” 

Kuzel added that he “wouldn’t be able” to sustain his business if the changes pass. Young and Retail NZ claim many other retailers are in the same position.

Consumer NZ urged the government to continue with the ban, adding that only 15 per cent of the population opposes it.

“Two-thirds of New Zealanders think that businesses should cover the cost of card payments themselves,” said Jessica Walker, Consumer NZ campaign manager.

“Too many businesses are flouting the guidelines which say surcharges should be transparent, avoidable and not excessive.

“Over a quarter of New Zealanders told us they think they are rarely or never informed of surcharges ahead of payment, and more than four in 10 said they’ve paid a surcharge because they couldn’t use a no-fee option.”

Consumer NZ added that, since 2023, it has received over 300 complaints about excessive surcharges. The highest of which was 25 per cent.