22 October 2026
Retail NZ Chief Executive, Carolyn Young, says it is disappointing the Commerce Commission has not gone as far as planned with the new fee cap it is set to introduce on commercial credit cards.
Retail NZ, the peak body representing retailers in New Zealand, submitted in support of a new interchange fee cap, which the Commerce Commission had initially recommended be set at between 0.5% and 1.5%, depending on whether the card was domestic or foreign-issued, and the transaction was in-person or online.
The final decision paper from the Commerce Commission today has settled on a higher 0.7% cap on in-person domestic commercial credit cards.
“Retailers will feel let down by this decision, with commercial credit cards drawing the highest fees of any card accepted in store,” Carolyn Young says.
“Commercial credit cards make up 19% of all interchange fees paid, despite only making up 8% of the value of transactions. While the interchange fee only makes up part of the Merchant Service Fees paid by retailers, that extra 0.2% would have made a real difference to retailers who accept these cards in store.”
However, Retail NZ is grateful the Commerce Commission has taken measures to address the high fees drawn by commercial credit cards.
“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. We’re pleased the Commission has recognised that action is needed to ensure the fees being charged aren’t excessive,” Ms Young says.
“We will have to wait and see just how much of a difference the new interchange fee cap will make to retailers, and we encourage the Commission to continue to work to reduce other card fees faced by the retail sector.”
The Commerce Commission estimates the new cap, which comes into force on 22 April 2027, will save $40 million in merchant service fees annually.
For further information or to set up an interview, please contact Carolyn Young on 021 449 452
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