New Zealand to Ban Surcharges on Electronic Payments in Stores by 2026

New Zealand will ban surcharges on in-store electronic payments from May 2026 at the latest. The government aims to ban surcharges to protect consumers from unexpected charges, with an estimated NZ$65 million of the NZ$150 million paid in surcharges considered excessive. The ban is expected to reduce the amount consumers pay for surcharges, which currently exceed the fees businesses pay for accepting contactless payments and credit cards.

New Zealand is set to implement a ban on surcharges for in-store electronic payments by May 2026 at the latest, as announced by Commerce and Consumer Affairs Minister Scott Simpson. This move aims to protect consumers from unexpected charges and enhance transparency in transactions.

The proposed ban, to be introduced through the Retail Payment System (Ban on Surcharges) Amendment Bill, targets surcharges applied to transactions made through Visa, Mastercard, and EFTPOS networks. These surcharges, currently estimated at NZ$150 million annually, are often considered excessive by consumers and businesses alike. Simpson noted that NZ$65 million of these surcharges are deemed excessive, highlighting the need for reform [1].

The Commerce Commission has also been working to lower interchange fees paid by businesses for accepting Visa and Mastercard payments. The overall cost of these fees is estimated at NZ$1 billion annually, with a significant portion passed onto customers through surcharges and higher product costs [1].

Retail New Zealand chief executive Carolyn Young welcomed the ban, stating that it would improve the retail experience for customers. However, she also noted that prices might increase to cover the costs of accepting credit card payments, as retailers will no longer be able to pass on these costs to consumers [2].

The ban does not apply to online payments, foreign-issued cards, prepaid gift or travel cards, or cards issued by other networks like AMEX or UnionPay. The Commerce Commission will need to ensure that the fees being charged to merchants reflect the new legislation, that the savings are passed on to retailers, and that other fees are not increased [2].

This ban is expected to benefit consumers by providing them with a clearer understanding of their total purchase costs, as they will no longer face hidden surcharges. However, retailers will need to adapt their payment systems to comply with the new regulations.

References:
[1] https://www.1news.co.nz/2025/07/28/govt-proposes-ban-on-in-store-payment-surcharges/
[2] https://www.bloomberg.com/news/articles/2025-07-28/new-zealand-to-ban-surcharges-on-in-store-electronic-payments