Consumer NZ is calling on the government to introduce a ban on card payment surcharges, as new research shows strong public support for change.
Almost three in five New Zealanders back a ban on surcharges, while just 15% oppose it. The findings come as payment costs for businesses have fallen significantly since December 2025, saving an estimated $90 million a year.
Despite these lower costs, surcharges continue to hit consumers’ wallets, with Consumer NZ estimating New Zealand shoppers are paying around $65 million each year in excessive fees.
“Two-thirds of New Zealanders think that businesses should cover the cost of card payments themselves,” says Jessica Walker, Consumer NZ campaign manager. “Too many businesses are flouting the guidelines which say surcharges should be transparent, avoidable and not excessive.
“Over a quarter of New Zealanders told us they think they are rarely or never informed of surcharges ahead of payment, and more than four in ten said they’ve paid a surcharge because they couldn’t use a no-fee option.”
Since 2023, Consumer NZ has received over 300 complaints about surcharge practices, with some surcharges as high as 25%. Research found that more than 40% of shoppers paid surcharges because they had no no-fee alternative, while over a quarter said they were rarely informed of the fees before checkout.
Walker says a ban would simplify payments for both businesses and customers. “If a business chooses to pass on additional costs due to the ban, we expect those costs to be minimal.
“Internationally we are seeing a more progressive stance when it comes to surcharging, with Australian regulators signalling they will ban surcharges on debit and credit card payments from mid-2026.
“In the UK and EU, surcharging is already largely banned. We don’t think it’s fair New Zealand consumers are expected to continue shouldering these costs.”
An ongoing debate
For many merchants, especially small retailers and hospitality operators, surcharges were initially introduced to offset card processing costs that once averaged between 1.5% and 3% per transaction. These fees included bank interchange charges, terminal rentals, and network costs.
However, recent Commerce Commission data shows that average merchant service fees for contactless debit transactions have fallen by more than 40% since 2022, following new caps and agreements between banks and payment networks. The total annual cost of accepting card payments for New Zealand businesses is now around $1.2 billion, down from $1.8 billion four years ago.
Some industry groups argue that smaller operators still face disproportionately higher fees than large corporates, who can negotiate better rates through volume-based agreements. Hospitality NZ and Retail NZ maintain that removing surcharges entirely could shift costs onto all consumers if businesses are forced to absorb the expense.
Economists note that international examples suggest otherwise. When the UK and EU banned consumer surcharges in 2018, overall payment costs to businesses stabilised within 18 months as provider competition increased. In Australia, regulators project that small business transaction fees will decline by at least another 20% ahead of their mid-2026 ban.
MBIE continues to explore the impact of a potential ban as part of wider retail payment reforms, with recommendations expected later this year. The findings will inform whether surcharging remains a discretionary practice or is phased out to align New Zealand with global standards of transparency and fairness.
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