Surcharges sent packing

BusinessNZ says scrapping surcharges on card payments is a step in the right direction for consumers, and for businesses that issue the cards.

The ban will apply to most in-store payments made using domestic Mastercard, Visa debit, credit cards and EFTPOS from no later than May next year.

BusinessNZ Director of Advocacy Catherine Beard says consumers should be encouraged to use modern modes of payment "without second-guessing a purchase or having to do the ‘insert card’ dance at the till".

"We used to pride ourselves on being early-adopters of new technology, but surcharges felt like a step back for New Zealand.

"While interchange fees will need to be absorbed by retailers or passed on to consumers, ultimately these changes will lead to a better shopping experience with a no-fuss payment process at checkout, and consumers knowing the costs up front. This is the way the rest of the world is regulating."