The Commerce Commission says businesses in New Zealand will save an estimated $105 million each year by a reduction in fees to accept Mastercard and Visa payments – savings that are expected to be sustained and flow through to Kiwis over time.
With the introduction of interchange fee regulation in November last year, Commission Chair, John Small says payment providers have lowered the fees they charge for the vast majority of businesses in New Zealand for accepting Mastercard and Visa payments.
“This is an important step for our work under new regulations helping to lower fees businesses face to accept contactless and credit payments,” said Dr Small.
“Our data to date shows that businesses will save an estimated $105 million each year – more than 40% above the $74 million predicted in May 2022.
“These should be ongoing savings in what businesses – including retailers like restaurants, your local hairdresser, dairy and café, who make up most businesses in the country – are charged by their payment provider, and we will be watching for what we expect to see in these businesses sharing this benefit with their consumers.”
Dr Small says payment providers need to do more to make information on their fees clear and transparent so businesses across New Zealand can make informed and confident decisions about what provider and plan is right for them.
The Commission’s report is available here.