New Mastercard and Visa Interchange Fee Network Standard 2025
On 1 December 2025, new caps on interchange fees for personal in-person debit and credit payments via the Visa and Mastercard schemes came into effect. Here’s what retailers need to know.
Interchange fees, sometimes known as swipe fees, are charges that your bank (known as the acquirer) pays to your customer’s bank (the issuer) for processing a card transaction. These fees are determined by the card networks such as Visa and Mastercard. Essentially, they serve as compensation to the issuing bank for providing and maintaining the card used in the transaction.
What’s changing?
From 1 December 2025, the Commerce Commission’s new Interchange Fee Network Standard came into effect under the Retail Payment System Act 2022. This standard introduced significant changes to how interchange fees are capped for Mastercard and Visa transactions in New Zealand. Here’s what you need to know and how to prepare.
Contacted debit transactions will have zero interchange fees, making EFTPOS and debit card payments more cost-effective. Online debit and credit transactions have higher caps, so retailers will need to consider strategies to balance these costs.
This article is for general guidance only. Please visit the Commerce Commission website for further information and guidance.
Tips to prepare your business
Review your payment mix
- Encourage customers to use contacted debit cards for in-store purchases.
- Post signage in your store and train staff to promote cost-effective payment options.
Update your POS systems
Ensure your terminals support contacted debit transactions and are optimised for compliance.
Review acquirer agreements
Confirm with your payment provider regarding the reduction of interchange fees and request renegotiation of merchant service fees, if possible.
Strategise online sales
Factor in the higher interchange caps for online transactions when setting pricing or delivery fees.
Stay compliant
Avoid practices that could be seen as circumventing the intent of the standard, and ensure that your pricing and advertising are compliant with the Fair Trading Act.
Need more information?
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