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2026 Surcharge Ban: Guide for NZ Businesses

5 minutes read time

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The New Zealand Government plans to ban most card payment surcharges from 2026.

The Retail Payment System (Ban on Merchant Surcharges) Amendment Bill would stop businesses from adding a surcharge to most in-store EFTPOS, Visa and Mastercard payments.

This guide explains what the surcharge ban means for New Zealand businesses, which payments are covered, when the changes are expected to take effect, and what you should do to prepare.

Where the surcharge ban is up to

The Retail Payment System (Ban on Merchant Surcharges) Amendment Bill was reported back by the Finance and Expenditure Committee on 13 November 2025. The committee recommended that the Bill be passed, with one amendment.

The Bill will now move through the remaining Parliamentary stages before becoming law. Once passed, the ban will come into force one month after Royal assent.

Based on current Government timelines, the surcharge ban is expected to take effect by May 2026.

What the surcharge ban covers

What payments will be affected?

If the Bill passes in its current form, businesses will not be allowed to surcharge:

  • In-store EFTPOS payments

  • In-store Visa debit and credit card payments

  • In-store Mastercard debit and credit card payments

This applies regardless of how the card is used, including tap, insert, swipe, or digital wallets such as Apple Pay or Google Pay.

What payments are not covered?

The proposed ban does not apply to:

  • Online card payments

  • Payments made on other card schemes, such as American Express or Diners Club

These payment types may still be surcharged, subject to existing rules.

What happens if a business breaches the ban?

If a business charges a prohibited surcharge once the law is in force:

  • The surcharge will be unenforceable

  • The customer will be entitled to a refund

  • The Commerce Commission may issue corrective notices or seek penalties

Interchange fees and costs

The surcharge ban sits alongside recently introduced interchange fee caps on Visa and Mastercard transactions. These caps are intended to reduce the fees businesses pay to accept card payments.

While this may lower some costs, businesses should still review their pricing and payment mix ahead of the ban coming into effect.

What businesses should do now 

How to prepare for the surcharge ban

Surcharging is still legal under the current rules.

Eftpos NZ will continue to keep its payment solutions aligned with regulatory requirements and will give you notice ahead of any required changes. We’re also exploring how to support any surcharges that remain permitted under the new law, so you can recover costs where possible.

In the meantime, we recommend the following steps.

Review where and how you surcharge
Identify which payment types you currently surcharge and which of those are likely to be affected by the ban.

Plan pricing changes early
Decide whether you will absorb costs, adjust prices, or encourage lower-cost payment methods like EFTPOS. You can use Verifone Central to see how much you currently collect through surcharges, which can help inform pricing decisions. Learn how to create a surcharge reporting template here.

Check signage and receipts
Make sure surcharge disclosures are accurate and can be updated quickly before the law takes effect.

Stay informed
The final scope and start date will be confirmed once the Bill passes.

Get our Quarterly Updates

Sources

All information in this guide is based on official announcements and industry commentary as of Jan 2026

Legislation and Parliamentary process

Government and regulator decisions

Industry, business and consumer perspectives

Media and analysis

Frequently asked questions

When does the surcharge ban start in New Zealand?

The surcharge ban is expected to take effect by May 2026. The exact start date will be confirmed once the Bill passes and receives Royal assent, after which there will be a one-month lead-in period.

Is surcharging illegal in New Zealand now?

No. Surcharging is still legal under the current rules. Businesses can continue to apply surcharges until the new law comes into force.

Which payments will I no longer be able to surcharge?

If the Bill passes in its current form, you will not be able to surcharge in-store EFTPOS, Visa or Mastercard payments, regardless of whether the card is tapped, inserted, swiped, or used via a digital wallet.

Can I still surcharge online card payments?

Yes. Online card payments are not currently included in the proposed ban and may still be surcharged under existing rules.

Are Union Pay, American Express and Diners Club affected?

No. Payments made on other card schemes, such as Union Pay, American Express or Diners Club, are not currently covered by the ban.

What happens if I charge a surcharge after the ban starts?

If a prohibited surcharge is applied once the law is in force, it will be unenforceable, the customer will be entitled to a refund, and the Commerce Commission may take enforcement action.

Will lower interchange fees fully offset the loss of surcharges?

Interchange fee caps are expected to reduce some card acceptance costs, but they may not offset all surcharge revenue for every business. That’s why it’s important to review pricing and payment options early.

What should I do now to prepare?

Start by reviewing where you currently surcharge, understanding how much you collect, and planning how you might adjust pricing or encourage lower-cost payment methods like EFTPOS.

 

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