2026 Surcharge Ban: Guide for NZ Businesses

By EFTPOS NZ September 10, 2025 4 minutes read time

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New Zealand’s government is moving to ban most surcharges on in-store card payments. The change is coming through the Retail Payment System (Ban on Surcharges) Amendment Bill, which aims to eliminate the extra fees many businesses charge when customers pay with credit or contactless debit cards.

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Kiwi shoppers currently pay up to $150 million a year in surcharges, with about $65 million of that considered excessive. From May 2026, these fees will be banned for most domestic card payments made in person. This guide outlines what transactions are affected, the expected timeframe, and what it all means for your business.

What changes now?

Surcharging is still legal under the current rules. Eftpos NZ will keep your payment system compliant and give you plenty of notice before anything changes. We're also exploring how to support any allowed surcharges under the new law, so you can recover costs where possible.

What types of payments will the ban cover?

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The proposed ban applies to most in-person card payments using New Zealand-issued debit or credit cards on the Visa and Mastercard networks. That means no surcharge at checkout for domestic EFTPOS, Visa or Mastercard payments made in-store, whether the customer taps, inserts, or swipes.

Here’s a summary of what will be included:

NZ-issued Visa and Mastercard debit card payments (including contactless/PayWave)
NZ-issued Visa and Mastercard credit card payments
EFTPOS (PIN debit) transactions — These never incur interchange fees, but were occasionally mis-surcharged. Going forward no surcharge can be applied.

What payments are not affected?

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The government has said the following transactions are excluded from the ban, and can still be surcharged:

Online payments: You can still surcharge for credit or debit card payments made through ecommerce or invoicing systems
Foreign-issued cards: Cards issued overseas are not covered by the ban
Other card schemes: Cards like Amex or Diners Club are excluded
Prepaid and gift cards: These can still have a surcharge added

One unclear area is corporate or commercial credit cards. The Bill talks about consumer cards, but hasn’t specified whether business cards are included.

Timeline: When do the changes happen?

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Late 2025: The Government plans to introduce the Amendment Bill to Parliament
Early 2026: The Bill will go through select committee review, with a chance for public submissions
By May 2026: The ban is expected to come into force. It could be earlier, but May is the latest possible start date

Until then, you can continue to apply surcharges under current rules. We'll confirm the final date and update you with plenty of lead time.

What about interchange fees?

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This change follows earlier work to lower interchange fees — the behind-the-scenes charges paid between banks on every card transaction. These fees are a major part of the cost that merchants recover through surcharging.

From 1 December 2025, domestic card interchange fees will be capped at:

0.20% for contactless debit (EFTPOS remains $0)
0.30% for credit card transactions in person

Foreign-issued cards will be capped from 1 May 2026 at around:

0.60–0.70% for in-person transactions
~1.5% for online credit card payments

Prepaid and commercial cards are not yet capped.

The Commerce Commission expects an average small business to save about $500 annually from the 2025 fee cuts alone. To benefit fully from the new interchange fee caps, your merchant service fees must be structured on variable pricing models. Fixed-rate plans will not automatically adjust to reflect these changes. Learn more about the benefits of bank-backed variable pricing models here.

What should you do now?

1. Plan for the change Start thinking about what to do once surcharging is no longer an option. Could you adjust your pricing to absorb the cost? With fees lower, that might be manageable. Eftpos NZ customers can use Verifone Central to run a report showing how much they collect through surcharges. Learn how to create a surcharge reporting template here.

2. Ask your payment provider about lower fees From December 2025, you should see lower merchant service fees thanks to the new caps. If your fees don’t drop, ask your provider why.

3. Stay up to date We’ll keep you posted as the law progresses. Once the Bill is passed, we’ll let you know what changes to make and when. Subscribe to our newsletter here.

What consumers and businesses are saying

Consumers: Groups like Consumer NZ are pleased. They’ve campaigned against high surcharges for years, and see this as a win for fairness.

Small businesses: Some are concerned about losing the ability to pass on costs, especially in tight-margin sectors. Industry groups will likely push for adjustments during the Bill’s review.

Retail NZ: Supports the move in principle, but warns retailers still face card acceptance costs that may now be built into prices.

Card networks: Visa and Mastercard support the change. They say lower fees and simpler checkouts benefit everyone.

Charities and exceptions: Some groups, like hospice shops, may seek exemptions due to tight budgets and fundraising needs. These will be debated during the Bill process.

Looking ahead

Most in-store surcharges will likely be gone by May 2026. We’ll keep you informed at every step! We're here to help you stay compliant, plan ahead, and make the most of lower payment fees.