Commerce Commission proposes caps on company card interchange fees
The Commerce Commission has released a draft decision proposing to cap interchange fees for commercial credit cards at 0.20 per cent for in-person transactions and 0.40 per cent for online transactions.
Regulation and Markets Conduct Reporter · 04/06/2026 · 12:55 NZT · 7 min read
"When a retailer gets charged too much to accept a payment, that cost doesn't just sit with them. It gets passed on to all of us as consumers through surcharges and higher prices at the counter."Cameron Brewer, Minister of Commerce and Consumer Affairs
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The Commerce Commission has released a draft decision proposing to cap interchange fees for commercial credit cards at 0.20 per cent for in-person transactions and 0.40 per cent for online transactions.
The move targets fees that New Zealand businesses pay on company cards. Minister of Commerce and Consumer Affairs Cameron Brewer says the change would save retailers around $40 million a year.
"When a retailer gets charged too much to accept a payment, that cost doesn't just sit with them. It gets passed on to all of us as consumers through surcharges and higher prices at the counter." — Cameron Brewer, Minister of Commerce and Consumer Affairs
Businesses pay around $125 million a year in interchange fees for company cards. These cards represent a small share of transactions yet attract fees close to double Australian levels.
The draft decision builds on the Initial Pricing Standard introduced in November 2022 under the Retail Payment System Act 2022. That standard delivered an estimated $160 million in annual savings on domestic consumer cards.
Proposed interchange fee caps
The Commission estimated the full package of changes in the draft would cut interchange fees by approximately $260 million annually.
AI illustration of a New Zealand retail counter with a card payment terminal — the type of business that stands to benefit from the Commerce Commission's proposed interchange fee caps. AI illustration · EconomicNews.nz
Proposed interchange fee caps by card type
Card type
Fee cap
Commercial credit — in-person
0.20%
Commercial credit — online
0.40%
Domestic credit — in-person
0.20%
Domestic credit — online
0.40%
Foreign-issued — in-person
0.60%
Foreign-issued — online
1.15%
Domestic debit (contactless) — in-person
0.20%
Domestic debit (contactless) — online
0.40%
Caps proposed in the Commerce Commission draft decision of 18 December 2024.
Source: Commerce Commission Draft Decision and Reasons Paper, 18 December 2024
The Retail Payment System Act 2022 empowers the Commission to designate networks and set pricing standards. The goal is to promote competition and efficiency for the long-term benefit of merchants and consumers.
New Zealand fees have reached as high as 2.5 per cent for some transactions. In comparison, the European Union caps consumer credit interchange at 0.3 per cent.
Consultation and path to final decision
The draft followed a July 2024 consultation paper that, according to the Commission's draft decision paper, received over 40 submissions. The Commission planned further work on surcharging regulation in 2025.
In its final decision of 17 July 2025 the Commission did not regulate commercial credit cards. It cited the need for further analysis. The final package delivered an additional estimated $90–100 million in annual savings.
In submissions to the Commission, retailers and business groups expressed support for lower costs, while banks and networks raised concerns about issuer margins and fraud coverage.
Pass-through and surcharging
The Commission said it would monitor whether savings pass through to businesses via lower merchant service fees. It also flagged risks of offsetting increases in other fees.
Excessive surcharging by merchants was estimated at $45–65 million annually. The Commission signalled options for maximum surcharge rates and terminal displays.
The changes form part of ongoing efforts to align New Zealand fees more closely with international benchmarks such as those set by the Reserve Bank of Australia.
Further reviews of pass-through and foreign card caps are expected under the regulatory framework.
