Surcharge Ban To Save Shoppers Millions

Surcharges on in-store payments will be banned by May 2026 to ease costs for consumers. Commerce and Consumer Affairs Minister Scott Simpson said the change would help New Zealanders save millions annually and make shopping more straightforward.

“Surcharges are a hassle and an unwelcome surprise when shoppers get to the till. That pesky note or sticker on the payment machine will become a thing of the past,” said Simpson.

He explained that shoppers often face extra charges when using contactless cards or digital wallets. “We’re banning surcharges so consumers can shop with confidence knowing how much they will pay for their purchases.”

Currently, New Zealanders pay up to $150 million in surcharges each year, including $65 million in excessive charges. Simpson said this money could be better spent elsewhere.

The move comes after the Commerce Commission’s decision to reduce interchange fees paid by businesses to accept Visa and Mastercard payments. This change is expected to save businesses around $90 million annually.

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

He added that the ban would remove unwelcome surprises at the checkout. “A ban on surcharges 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.”