Govt makes moves to lower bankcard service charges
The Government is moving ahead to make paywave fees fairer for retailers in what they believe is a positive move for consumers and businesses alike.
The Labour Party promised before the election to look into how much money businesses are forced to pay for contactless payment services.
Credit and contactless debit card transaction fees cost Kiwi retailers around $13,000 more per year than retailers in Australia.
Early in the pandemic response this year, banks temporarily waived fees on contactless transactions and raised the purchase limit from $80 to $200.
Small Business Minister Stuart Nash said banks could change their fee structures for card payments right now.
“Reducing this business overhead would mean businesses can hold on to more of their own money and pass on savings to consumers.
“This in turn will aid the recovery from the pandemic by putting more money back in the economy.”
Nash says small businesses “are at the mercy of the banks when it comes to receiving payments for goods and services”.
Nash and Consumer Affairs Minister David Clark will report back to Cabinet by April next year with the outcome of a consultation launched yesterday. The consultation closes on February 19 next year and can be accessed on the MBIE website.
Consumer NZ head of research Jessica Wilson says overseas experience has shown regulation has been the only way to provide better consumer protection.”
“Interchange fees, which banks charge for credit and debit transactions, form a large share of merchant service fees.
“We are looking at ways of regulating these fees by introducing hard caps, targeted for different classes of retailers.”
Fees for contactless payments were a hot topic during the pandemic response.
Last month, Clark ordered the Commerce Commission to conduct a market study on supermarkets to ensure Kiwis aren’t paying too much for their groceries.
The investigation is similar to the one the commission did on the petrol market last year – which led to a more transparent pricing strategy, which required prices to be displayed.