The Commerce Commission has moved to lower interchange fees paid by businesses to accept Visa and Mastercard payments.
The regulator has issued a final decision, saying the cost was too high, and their decision would save businesses around $90 million a year.
It said the average business would save around $500 each year in lower fees, but individual businesses could save more or less, depending on the mix of transactions they accept.
The Commission put the overall cost of interchange fees at around $1 billion for businesses, which were often passed onto customers through surcharges and higher product costs.
“This is an important step in our continued work to cut costs for businesses and consumers,” Commerce Commission chair John Small said. “Our latest decision builds on the initial fee caps set in 2022, which led to $140 million in annual savings to New Zealand businesses.”
“This decision cuts the cost for businesses accepting payments made through credit cards and foreign-issued cards, which are often the most expensive for businesses to accept.”
The Commission said it would also explore what regulations may be needed to address excessive surcharging.
The Commission expected payments providers to support businesses understand their costs to accept these payment types.
It has also decided not to regulate fees for commercial credit card or prepaid debit card payments.
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