Auckland (The NZ Today)
Australians can now pay by most major debit and credit cards without being hit by an extra checkout fee, putting fresh attention on why New Zealand shoppers are still waiting for a similar change.
From 1 October 2026, surcharges have been removed in Australia for eftpos, Mastercard and Visa card payments following reforms by the Reserve Bank of Australia. American Express and UnionPay have also moved to remove surcharging, while PayPal is making the change from October 5.
New Zealand had also been moving towards a card-surcharge ban, with earlier expectations that restrictions could be introduced this year.
That has not happened.
National says it still supports removing card surcharges, but no new start date has been announced.
Commerce and Consumer Affairs Minister Cameron Brewer says officials are continuing to work through the proposal and the Government wants to make sure any final system is workable for both shoppers and businesses.
Australia’s move means the two countries are now taking noticeably different approaches at the checkout.
In New Zealand, businesses can still add a surcharge for card payments, although existing guidance says any fee should reflect the actual cost of accepting that payment method and should be clearly disclosed.
The Commerce Commission has separately reduced interchange fee caps, lowering some of the underlying costs faced by retailers when customers pay by card.
The Government has previously estimated those reforms could eventually save businesses hundreds of millions of dollars each year.
Consumer advocates argue that lower merchant costs strengthen the case for getting rid of surcharges altogether.
Consumer NZ says its polling shows most New Zealanders would support a ban, while many shoppers remain frustrated by charges that only become obvious at the point of payment.
Its research also found growing resistance to the idea that customers should have to cover those costs separately rather than businesses incorporating them into advertised prices.
The debate is particularly sensitive for smaller retailers and hospitality businesses, which have argued that card-processing expenses can be significant.
Supporters of a ban say those costs should instead be reflected transparently in the overall price, rather than appearing as an unexpected fee at checkout.
Australia’s reform also goes beyond the surcharge itself. The Reserve Bank has cut interchange caps and introduced additional transparency requirements around payment costs.
In New Zealand, the central question is now less about whether politicians support removing surcharges and more about when — and in what form — a ban will actually happen.
Source: RNZ
