17 October 2025

Retail NZ supports Dr Parmjeet Parmar’s proposed amendment to the Retail Payment System (Ban on Merchant Surcharges) Amendment Bill. Enabling retailers that offer a fee-free alternative, to be able to surcharge customers, makes sense. It gives everyone choice and protects merchants who wish to recover costs of the Merchant Service Fee. Its fair and adaptable in a complex payments environment.

“Retailers continue to face strong headwinds as low consumer confidence continues with households continuing to feel the pinch of rising prices for essential goods. Many retailers are re-evaluating how they will price and process payments in an economic environment where we have been told “These last three months have been the toughest sales period for our business in the last eight years” . Dr Parmar’s proposed solution provides flexibility and enables businesses to continue to decide what is best for them and gives consumers choice.” said Carolyn Young, Retail NZ Chief Executive.

“We are attending Select Committee next week and will be sure to let the Committee know that retailers would support this amendment. We have urged the Government to pause the proposed ban but Minister Simpson was clear to us this week that he is not considering any pause or consultation. This amendment would enable the Commerce Commission to undertake a full consultation and address any key areas of concern,” Ms Young says.

As it stands, the Bill will entrench the dominance of major credit card companies and make it harder for new payment technologies via FinTechs to enter the market. Members have told us “We are very concerned about the surcharge ban and the extra cost of doing business,”  with many retailers considering increasing prices to cover the surcharge ban.

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