Surcharges To Be Banned By May 2026

Surcharges To Be Banned By May 2026

Surcharges will be banned so consumers can shop with confidence knowing how much they will pay for their purchases.

Commerce and Consumer Affairs Minister Scott Simpson said surcharges will be axed to put money back in Kiwis’ pockets.

According to him, surcharges are a hassle and an unwelcome surprise when shoppers reach the checkout.

“That pesky note or sticker on the payment machine will become a thing of the past.”

New Zealanders are paying up to NZD 150 million in surcharges every year, including excessive surcharges of up to NZD 65 million. That’s money that could be saved or spent elsewhere.

“By May 2026 at the latest, we will ban surcharges for in-store payments.”

Shoppers will no longer be penalised for their choice of payment method, whether that’s tapping, swiping or using their phone’s digital wallet.

The ban followed the Commerce Commission decision to reduce interchange fees paid by businesses to accept Visa and Mastercard payments, a move to save businesses around NZD 90 million a year.

“Surcharges cover the fees businesses pay for accepting contactless payments and credit cards, but we know these are often excessive. In some cases, the retailer doesn’t even make it clear what the percentage is.”

Simpson added that a ban on the surcharge means no more surprises for people who currently feel like they’re being charged to use their own hard-earned money.

“It means they can make a purchase knowing exactly what they’ll pay, and how they’ll pay it.”

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