The New Zealand government has announced plans to ban surcharges on most in-store electronic payments, aiming to save consumers up to NZ$150 million annually.

The proposed legislation, expected to be introduced by the end of 2025 and to take effect no later than May 2026, will prohibit retailers from adding extra fees to purchases made with Visa and Mastercard debit and credit cards, as well as EFTPOS.

Commerce minister Scott Simpson said, “Surcharges are a hassle and an unwelcome surprise when shoppers get to the till. We’re banning surcharges so consumers can shop with confidence knowing how much they will pay for their purchases.” He added, “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.”

The ban will not apply to online transactions, foreign-issued cards, or prepaid, travel and gift cards. Retailers in New Zealand typically charge around 0.7 per cent for debit card payments and up to 2 per cent for credit card payments. The Commerce Commission estimates that consumers pay about NZ$150 million in surcharges annually, including up to NZ$65 million in what it considers excessive charges.

Prime minister Christopher Luxon stated, “We are scrapping surcharges at the till. New Zealanders are paying up to NZ$150 million in surcharges every year. That’s money that could be saved or spent elsewhere.”

The move follows public frustration over the cost and transparency of surcharges, with Consumer NZ and payment networks like Mastercard and Visa supporting the ban. However, Retail NZ warned that small businesses may have to increase prices elsewhere to cover payment costs.

The changes will bring New Zealand in line with the United Kingdom and the European Union, where such surcharges are already banned. Australia allows surcharges but requires them to reflect actual costs, and is considering a similar ban.

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