If you accept card payments, your choice of payment partner affects everything from your fees to your cashflow. With upcoming changes to surcharging rules, it’s more important than ever to make sure you're getting the right deal for your business and not locking yourself into a solution that costs more than it saves.
In New Zealand, most businesses use a bank to handle their payment processing. Some newer providers bundle payment terminals with fixed-rate processing plans. These offers can sound appealing upfront, but there are often trade-offs that could end up costing your business thousands more each year.
Here’s why working with a bank-backed provider is the smartest choice for your business payments:
1. Transparent pricing that adapts to you
Some providers advertise low fixed rates for transaction processing, but what they don’t tell you is that you might start paying for transaction types that are currently free. For example, payments made by inserting a Visa or Mastercard debit card are free to process with a bank. Other providers charge for these — even though they make up a large portion of everyday payments.
With a bank, you're more likely to be on an 'interchange-plus' model that reflects the true cost of each transaction. This means you benefit when industry fees drop (like the Commerce Commission’s December 2025 interchange cap), rather than being stuck on a static rate that doesn’t pass on savings.
2. Fewer surprises
Some providers bundle terminals and payments into one rate — but tie this to turnover thresholds or sales mix triggers. If your business has a quiet month, or your card mix changes, your rate could too. Banks tend to offer more predictable pricing with fewer strings attached. They don’t charge GST on transaction fees, and they offer flexible plans that scale with your business.
3. Built-in compliance and regulation support
With a ban on surcharging set for May 2026, and fee structures changing in December 2025, you need a partner who stays ahead of regulation. Banks work closely with regulators to ensure your setup is compliant, and they’ll help you adjust when rules change.
We're working closely with our bank partners to develop a solution that will allow you to surcharge where permitted under the new rules.
4. Better tech, broader support
Some new EFTPOS terminals entering the market don’t support all card types. Magstripe cards, still used in about 1 in 5 NZ transactions, may require a second device to process. That means extra network fees and more time spent on reconciliation. Look for solutions that accept all standard card types, settle funds quickly (next day), and come with experienced local support for issues like disputes or fraud.
5. More than just payments
When you work with a bank, you’re not just getting a payment processor. You're getting a business partner. From smarter data to cashflow tools, your bank can help you understand your customers, plan ahead, and make informed financial decisions.
The bottom line: Some deals sound great upfront — low cost bundled services with fixed rates. But if it means paying for transactions that used to be free, missing out on fee reductions, or juggling multiple devices just to stay connected, the true cost can stack up quickly.
Want to make sure you're on the best setup for your business?
We’ve helped many merchants avoid hidden costs by reviewing their payment setup. If you’re unsure whether your current setup is right for you, get in touch with your bank — they’ll be able to review your pricing and help you understand your options.