Cheaper card payments for businesses proposed

What's at stake

Who feels it

Retailers, SME merchants, and consumers. Approximately 10,000+ businesses accepting card payments; all consumers through retail prices.

Money in play

$290 million in annual retail savings expected across all card types; $40 million annual saving from company card fees alone. Current spend: $125 million annually in company card interchange fees.

Timing

Draft decision released 04 June 2026. Final decision expected later in 2026. Final decision will set effective implementation date.

How it works

Commerce Commission regulation under the Commerce Act 1986 (Part 4A regime for mandatory regulation of payment system services). Interchange fee caps set by final determination.

Key context

Draft decision is open for consultation — submission window TBC on Commerce Commission website; watch for final determination later in 2026Interchange fee cap for company cards (commercial credit cards) will be set in final decision — current NZ rates are close to double Australian ratesRetailers should track the final decision for implementation date and exact fee cap levels that will apply to their card transaction costsThis caps fees on company cards specifically; earlier reductions to interchange fees for other card types (non-company) already implementedSavings ($290m annually) are expected to be passed to consumers through lower retail prices/reduced surcharges — track retailer pricing response

Wider effects

Payment system competition and regulation under Commerce Act Part 4A (mandatory regime for payment system operators). Adjacent to broader Government review of payment system costs and consumer protection; ties to retail price fairness agenda.