New Zealand Plans to Abolish Checkout Fees by 2026
(MENAFN) New Zealand plans to outlaw retail payment surcharges by May 2026, a move aimed at sparing consumers millions of dollars, government officials revealed Monday.
Prime Minister Christopher Luxon framed the surcharge prohibition as part of a wider initiative to ease the financial strain on households amid rising living costs.
Currently, New Zealanders pay up to 150 million NZD annually in retail till surcharges, including 65 million NZD in excessive fees. Commerce and Consumer Affairs Minister Scott Simpson stated these charges will be abolished to improve transparency at the checkout.
This decision follows recent interventions by the Commerce Commission to reduce interchange fees on Visa and Mastercard transactions—reforms anticipated to save local businesses approximately 90 million NZD each year.
Simpson emphasized the unfairness of surcharges, calling them an unwelcome surprise and unjustified, adding the ban will prevent people from feeling “charged to use their own hard-earned money.”
Legislation to enforce the ban is expected before the end of the year, with the rules taking effect in May 2026.
However, some eateries and cafés have expressed concerns that the ban on credit card surcharges for face-to-face payments might lead to higher prices, according to media.
At a post-Cabinet press briefing, Luxon highlighted several government initiatives—such as expanded tax relief, increased childcare subsidies, and the removal of Auckland’s regional fuel tax—designed to raise household incomes and contain inflation.
With inflation having dropped to 2.7 percent from 7.3 percent, Finance Minister Nicola Willis said New Zealand families will experience tangible benefits through lower mortgage repayments and steadier rents.
(Note: 1 NZ dollar equals 0.6 U.S. dollar)
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
