20 February 2026

Retail NZ’s members have been really clear in their opposition to the Government’s proposed card surcharge ban and the negative impacts it will have on their businesses, Retail NZ Chief Executive, Carolyn Young, says. 

“The proposed ban is poorly targeted, has been rushed through and risks significant unintended consequences for retailers and consumers alike,” Ms Young says. 

“Many retailers cannot afford to absorb the Merchant Service Fee and we are hearing that many of our members will have to pass on those costs. That will leave both businesses and consumers worse off at a time when the cost-of-living continues to bite.” 

Hubert Kuzel of Capital Office Supplies in Wellington told Retail NZ that he currently passes on the contactless and credit card fees on to consumers via a surcharge, as he can’t afford to absorb them. 

“The trend is going more and more into contactless payments, and this is where the charges are happening,” Mr Kuzel says. “It really takes up to almost 20 percent of our profit, and I’m not making a mistake, it is 20 percent what we’re losing on margins.” 

“[If a ban is imposed] I’ll have to increase our prices, we wouldn’t be able to sustain it,” Mr Kuzel says. 

Retail NZ chief executive, Carolyn Young, says many retailers have found themselves in the same position. 

Watch our video with Hubert Kuzel here.

Read our full submission on the Retail Payment System (Ban on Merchant Surcharges) Amendment Bill here.

For further information or to set up an interview please contact Carolyn on 021 449 452

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