Are Credit Card Surcharges Legal in New Zealand?

In New Zealand, it is legal to offset transaction fees incurred during payment processing by applying a surcharge to the transaction. However, businesses need to understand and comply with the regulations and guidelines associated with these charges.

Surcharging: Regulations and guidelines for merchants

The Commerce Commission oversees guidelines that govern surcharging in New Zealand, established under the Retail Payment System Act 2022, with a focus on transparency and fairness for consumers. 

1. Charge a fair surcharge amount

Your surcharge rate must match the cost of acceptance i.e. the merchant service fee rate.

How we can help: Our Surcharge solution offers you the flexibility to customise your surcharge rates to align with your cost of acceptance. We also have the option to set minimum and maximum surcharge amounts, as well as adjust the purchase thresholds that trigger a surcharge. With our Surcharge solution, you have complete control over how you manage and optimise your surcharging practices.

2. Display surcharge information before purchase

• Display signage and labels near your EFTPOS terminal informing your customers about the surcharge. Make sure that your signage is easily visible and legible.
• Customers should be informed of the surcharge fee, including its rate and the method used to calculate it, at the time of purchase.
• Offer your customers at least one payment option that does not attract any additional fees, for example, cash or inserting their card instead of tapping it.

How we can help: We offer a range of signage templates and stickers for your convenience. Learn more about signage here. Alongside your in-store signage, your terminal screen will display the message 'Surcharge may apply' during payment processing. 

3. Collect the surcharge with the transaction

• Include the surcharge as part of the overall purchase amount
• Make sure that the surcharge amount is shown on the customer's receipt

How we can help: We handle both of these requirements for you by including the surcharge within the overall purchase and displaying the surcharge as a separate line item on the EFTPOS receipt.

Looking for a flexible EFTPOS surcharging solution? Customise your surcharge to suit your business, add a surcharge to contactless transactions and selectively override surcharging for MOTO transactions with Surcharging on Android EFTPOS.