Fees to businesses for accepting Mastercard and Visa payments are being reduced, which according to the Commerce Commission, will provide immediate relief for small to medium businesses. The new regulation is part of the Retail Payment System Act 2022 and comes into effect on November 13.
“SMEs like restaurants, your hairdresser, bakeries, cafes, and other retailers - who make up most businesses in the country - should see immediate and permanent relief in what they are charged by their payment provider,” said John Small, Commissioner.
“Off the back of this reduction in fees, we will be watching for what we expect to see in these businesses sharing this benefit with their consumers.”
The Act also gives the Commerce Commission power to monitor payment providers and the networks they operate in, regulate certain networks of payments eg. Visa and Mastercard and set requirements for businesses that limit surcharging to no more than the costs of accepting payments.
