Commerce and Consumer Affairs Minister Scott Simpson announced this week the government planned to ban some surcharges for in-store payments by May next year.
“Shoppers will no longer be penalised for their choice of payment method, whether that’s tapping, swiping or using their phone’s digital wallet.”
The ban would cover most in-store payments made using Visa and Mastercard, including contactless and eftpos, but not online payments, foreign-issued cards, travel cards or cards issued by other networks.
The Swan and Commons Eatery owner Dane Wall believed a lot of businesses would end up increasing their prices.
Both his businesses had surcharges, but at a rate where it did not make or lose him any money, and he was “not super salty” about a ban going ahead.
“I think it’s great that the government are actively trying to free up money in the back pockets of everybody.”
Consumers still had the choice as to whether they paid using credit card and PayWave, and the impact on them would depend on how often they dined out, Mr Wall said.
“I think if anyone is really concerned about how much this is going to cost their business, they are well within their right to disable PayWave and disable credit card payments.
“That’s not uncommon in a lot of small businesses in New Zealand.”
The Perc Central, Exchange and Plaza co-owner Sarah Hussey said they had never placed surcharges on credit card and contactless payments, but had for the past two years charged an extra 15% on public holidays due to “skyrocketing” wage and food costs.
“We did look into it, and we thought it’s just not worth it because people are quite against it.
Surcharges annoyed more customers than what it was worth, Mrs Hussey said.
“I honestly think that people stop going places because people have the surcharge on there.
“The last thing you want is losing your customers at the moment.”
She believed a lot of vendors were charging consumers more than what the transaction services were costing them.
“I was somewhere … where they were charging 2.5% — and if they are paying 2.5% for their merchant facilities then they are paying too much.
“I often think that people are capitalising on it.”
The Commerce Commission earlier this month issued a decision to reduce the interchange fees paid by New Zealand businesses to accept Visa and Mastercard payments.
This would reduce the estimated $1 billion annual cost to businesses by about $90 million per annum — saving the average small business about $500 each year in fees.
New Zealand consumers paid up to $150m in surcharges every year, including “excessive surcharges” of up to $65m, Mr Simpson said.
Surcharges were “a hassle and an unwelcome surprise when shoppers get to the till”.
“That pesky note or sticker on the payment machine will become a thing of the past.
“We’re banning surcharges so consumers can shop with confidence knowing how much they will pay for their purchases.”
