2026 Surcharge Ban: Guide for NZ Businesses

By EFTPOS NZ March 26, 2026 5 minutes read time

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The Retail Payment System (Ban on Merchant Surcharges) Amendment Bill would stop businesses from adding a surcharge to most in-store card payments. This guide explains when the changes are expected to take effect, what you should do to prepare, and which payments are covered.

When is surcharging being banned?

The Bill has now stalled while the Government considers the wider implications. At this stage, no changes have been confirmed. We’ll continue to monitor the situation and support merchants with any updates.

Which payments would be affected?

If the Bill passed in its current form, businesses would 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.

Which payments are not covered?

The proposed ban would not apply to:

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

What would happen if a business breached the proposed ban?

If a business charged a prohibited surcharge:

The surcharge would be unenforceable
The customer would be entitled to a refund
The Commerce Commission may issue corrective notices or seek penalties

What's happening with surcharging in Australia?

From 1 October 2026, businesses in Australia can no longer surcharge payments made with eftpos, Visa, or Mastercard debit, prepaid, or credit cards. The ban was introduced by the Reserve Bank of Australia (RBA). It applies whether the card is tapped, inserted, or used through a digital wallet, and it covers online payments as well as in-store payments. That makes it broader than the ban proposed in New Zealand. American Express, UnionPay, and PayPal have also chosen to remove surcharging in Australia from the same date, although the RBA does not formally regulate them.

The RBA has also lowered interchange fee caps on Australian-issued cards. For personal credit cards, the cap has fallen from 0.8% to 0.3%. The ban only covers card surcharges. Other charges, such as weekend and public holiday surcharges, booking fees, and service fees, can still apply.

The Australian rules apply to businesses operating in Australia. They don't change anything for New Zealand businesses. Surcharging is still legal here under the Retail Payment System Act 2022, including on payments made with Australian-issued cards.

What businesses should do now

Surcharging is still legal under the current rules. Eftpos NZ will continue to keep our payment solutions aligned with regulatory requirements and will give our customers notice ahead of any required changes.

Leave it on- Surcharging is still legal in New Zealand, so there is no need to disable surcharging at this stage. It’s important to follow current Commerce Commission guidance when applying a surcharge.
Check your rate - The surcharge ban was proposed following the introduction of new interchange fee caps on Visa and Mastercard transactions. These caps have reduced the fees businesses pay to accept card payments. Now is a good time to review your surcharge rate to make sure it reflects your actual costs. If you’re collecting more in surcharges than you pay in merchant service fees, your rate should be adjusted. Your surcharge rate should not include terminal rental, POS costs, staff wages, or other general business expenses. Learn more about how to set an appropriate surcharge here.
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Frequently asked questions

When does the surcharge ban start in New Zealand?

The Bill has now stalled while the Government considers the wider implications. At this stage, no changes have been confirmed.

Is surcharging illegal in New Zealand now?

No. Surcharging is still legal under the current rules. Businesses can continue to apply surcharges.

Which payments would I no longer be able to surcharge?

The Bill proposes a ban on surcharges on 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.

How would the proposed Bill be enforced?

The Bill outlines the enforcement actions the Commerce Commission could take if a prohibited surcharge was applied. Any prohibited surcharges would be unenforceable, the customer would be entitled to a refund, and the Commerce Commission could take enforcement action.

Is surcharging banned in Australia?

Yes. From 1 October 2026, businesses in Australia can't surcharge eftpos, Visa, or Mastercard payments, in store or online. The ban applies to Australian businesses only and doesn't affect surcharging in New Zealand.