‘Let down’: Retailers react to commercial card fee cap decision

Retail NZ — The new cap will take effect in April next year. (Source: Pixabay)

By Kaycee Enerva Oct 23, 2026

Text Size

Retailers have raised concerns about the new interchange fee cap on commercial credit cards, saying the final limit falls short of what they had hoped for, Retail NZ says.

To address high payment costs, the Commerce Commission has set a 0.7 per cent cap on interchange fees for in-person domestic commercial credit card transactions, higher than the 0.5 per cent limit initially proposed for this category.

The new cap will take effect in April next year, with the regulator estimating it will save merchants $40 million in service fees annually.

“Retailers will feel let down by this decision, with commercial credit cards drawing the highest fees of any card accepted in store,” said Carolyn Young, CEO of Retail NZ.

According to the lobby, commercial credit cards account for 19 per cent of all interchange fees paid by retailers, despite representing just 8 per cent of transaction value.

While interchange fees make up only part of the merchant service fees retailers pay, Young said the additional 0.2 percentage points would have made a meaningful difference to businesses accepting commercial cards in-store.

Retail NZ had supported the Commission’s initial recommendations, which proposed interchange fee caps ranging from 0.5 per cent to 1.5 per cent, depending on whether a card was domestic or foreign-issued and whether a transaction took place in person or online.

Despite its disappointment with the final limit, the retail industry body welcomed the Commission’s recognition that commercial card fees needed to be addressed.

“These credit cards attract the highest fees of all payment methods, yet retailers cannot tell at the point of sale whether the card someone is using is a personal, international, or work card,” Young added.

“We’re pleased the Commission has recognised that action is needed to ensure the fees being charged aren’t excessive.”

Young said retailers would need to assess the impact of the new cap once it takes effect, while urging the Commission to continue working to reduce other card fees faced by the retail sector.