New Zealand’s government has scrapped its plans to ban card surcharge payments, in a move described as a “huge win” for retailers.

But the minister behind it has denied the news.

The proposals were set to come into effect in May. The bill has long been contested by the retail industry.

“Retail NZ understands the card surcharge ban proposed by the Commerce and Consumer Affairs Minister, Scott Simpson, will not be proceeding any further this term, which is a huge win for retail businesses,” Retail NZ CEO Carolyn Young said. “We would like to thank the Deputy Prime Minister and ACT leader, David Seymour, for his work on behalf of retailers to advocate against the ban.  

“Retailers have been clear that the proposed card surcharge ban would have been yet another blow to the struggling sector after a tough trading environment that has lasted several years.”

Young said that the timing of the news is an added positive for retailers.

“It will come as a particular relief to our members as the country enters another period of economic instability due to the conflict in the Middle East,” she added. 

“We are grateful the government has seen sense and put an end to the progression of this ill-thought-out proposal, which would have hit both businesses and consumers in the pocket.”

Scott Simpson, of the coalition’s National Party, denied that the plans had been scrapped. “No further decisions have been made on the ban on surcharges,” he told RNZ.

“We know Kiwis are sick of facing excessive surcharges. We are working through aspects of the policy, including monitoring whether reduced interchange fees have been passed on to customers.”