28 September 2025

Retail NZ and the Auckland Chamber, alongside a broad coalition of 35 Chambers of Commerce, industry and business associations, has sent a strong message to the Government, urging it to reconsider its proposed ban on surcharges on all in-person transactions via the Visa and Mastercard networks (including domestic, foreign issued, and commercial debit and credit cards). 

In an open letter addressed to Hon. Scott Simpson, Minister of Commerce and Consumer Affairs, the signatories – representing thousands of businesses across Aotearoa – argue that the proposed ban is a blunt instrument that will hurt both consumers and businesses. 

“The ability to apply surcharges is a vital tool for cost recovery, especially for small and medium-sized enterprises already facing rising operational expenses. Removing this flexibility will force businesses to absorb high credit card processing fees. This will ultimately lead to higher prices for all consumers while banks and credit card companies benefit through increased fee collection”, says Retail NZ Chief Executive Carolyn Young. 

Auckland Business Chamber CEO Simon Bridges says “This is not just one Chamber speaking out – 21 Chambers of Commerce from across New Zealand have put their name to this letter. Alongside other business associations, we are representing thousands of businesses across the country. From small family-run operations to larger enterprises, they all stand to be affected by this proposal.” 

The letter highlights that: 

• Many businesses already choose not to surcharge, showing the market is functioning.

• Surcharges reflect the real cost of accepting high-fee credit cards and are not a profit-making tool.

• A ban would unfairly shift costs onto all consumers, including those using low-cost payment methods like EFTPOS. 

• The policy risks accelerating the decline of EFTPOS and increasing reliance on expensive credit card networks, pushing up transaction costs for retailers. 

The letter also points out that excessive surcharging is already prohibited and that the Commerce Commission has the authority to ensure fair treatment of consumers.

Instead of a ban, the business groups are calling for: 

• Greater transparency so consumers understand the cost of their payment choices.

• Investment in technology that enables accurate surcharging by payment type.

• Support for innovation in low-cost payment infrastructure. 

“We are committed to working with the Government to build a payments system that is fair, transparent, and sustainable. But a one-size-fits-all ban is not the answer”, Ms Young says.

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